Transcript NATIONAL START UP/SENSITIZATION WORKSHOP OF IFAD

NATIONAL START UP/SENSITIZATION WORKSHOP OF THE FGN/IFAD – ASSISTED RURAL
FINANCE INSTITUTION BUILDING PROGRAMME (RUFIN)
DATE: FEBRUARY 1ST – 5TH 2010
VENUE: NICON LUXURY HOTEL, ABUJA
PRESENTATION ON: RELATIONSHIP BETWEEN RUFIN & OTHER IFAD FUNDED
PROJECTS AND GENERAL PROJECT COORDINATION
PRESENTER: DR. O.O. OYEBANJI
CTA: NPAFS, FMA&WR
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1.0 Background
•
The FGN/IFAD - Assisted Rural Finance Institution Building Programme (RUFIN) is a
follow - up on the donor/government dialogue on the financial reform which started in 2000.
•
RUFIN is expected to support the implementation of the microfinance policy framework
with particular focus on improving the target group’s access to financial services, including
expansion of formal banking services in the programme areas.
•
The programme is to be implemented in 12 states, spread across the six geopolitical zones
of Nigeria, with an estimated 345,000 farm families, comprising about 138,000 womanheaded households, whom are expected to benefit directly. These include small-holders,
farmers and rural entrepreneurs such as farmers, craftsmen, petty traders, women,
physically challenged, etc
•
By reaching out to poor rural people, the programme will ensure that they gain access to
financial services and can invest in and improve productivity in agriculture and small
businesses. In addition, RUFIN will support the development of target-group organizations
into rural finance institutions that improve poor rural people’s access to low-cost credit.
•
Given the numerous challenges to the country’s agriculture, which includes amongst
others; low farm productivity, weak infrastructure development, high post harvest losses,
largely attributed to the limited financial constraints within the real sectors. The
government, through the programme, recognises the need to strengthen rural financial
services, including improving access to credit, as a key to reducing poverty.
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2.0 Objectives of Programme
•
The objective of the programme is to develop and strengthen micro-finance
institutions (MFIs) and establish linkages among these institutions and other financial
institutions in order to create a viable and sustainable rural financial system.
3.0 Purpose of Programme
•
The purpose of RUFIN is to develop rural finance and enhance access to these
services by the rural population so as to boost the productivity of the rural micro and
small enterprises.
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4.0 Why Donor Project Coordination?
Donor coordination refers to the integration of the development assistance activities of the
donors in the recipient country into national development goals, programs, and strategies. Donor
coordination is required for the following reasons:
•
Donor coordination facilitates information sharing and enables the government of the recipient
country to know and follow up who does what and where;
•
Donor coordination promotes constructive dialogue on how to avoid overlapping of activities;
•
Not only the recipient but also donors want donor coordination since they are virtually under
increasing pressure from their respective houses of Assembly and public to show results;
•
Without coordination, each donor may pursue its own political and commercial interest and insist
on donor specific programs and projects that each have their own management procedures for all
phases of the project cycle.; and
•
Donor coordination enables the International development assistance integrate into national
policies, priorities, strategies, institutions and procedures of the recipient country.
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5.0 Areas of Possible Collaboration Between RUFIN and other Donor Supported
Projects/Programmes.

Policy Advice, knowledge Sharing and Monitoring

Operations

Administration
 Advocacy and Communication
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6.0 Relationship between RUFIN, IFAD and Other Donor Assisted Projects
•
Experience has shown that while it is not advisable to integrate rural financial services as a
component within an agricultural or any other form of development programme, it is important to
ensure the complementarity of technical and financial services for effective poverty alleviation.
•
Thus, RUFIN will complement other on-going IFAD assisted projects, notably; Community Based
Agricultural and Rural Development Programme (CBARDP) and Community-Based Natural
Resource Management Programme (CBNRMP). In addition, the programme will support the
National Fadama –III , National Programme for Food Security (NPFS), National Poverty
Eradication Programme (NAPEP) amongst others.
•
These projects and programmes target poor rural families with special focus on women, youths
and vulnerable groups which will also constitute the target group of RUFIN.
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Table 1: COMPLEMENTARITY AND SYNERGY POTENTIALS FOR RUFIN
S/N PROJECTS/PROGRA
MMES
AREAS OF SYNERGY/COMPLEMENTARITY WITH RUFIN
1.
Community Based
Natural Resource
Management
Programme – Niger
Delta (CBNRMP –
ND)
• Capacity building and training
• Knowledge /Information sharing and Results
Consolidation
• Savings and Credit Schemes
• Enterprise Analyses
• Group and Cooperative Development
2.
Community Based
Agric. & Rural
Development
Programme
(CBARDP)
• Capacity building
• Financial Linkage
• Savings and Credit Schemes
• Micro Credit Policy
• Enterprise Analyses
3.
Rural Micro
Enterprise
Development
Programme
(RUMEDP)
•
•
•
•
OTHERS:
Capacity building & policy dialogue
Information Sharing & Consolidation of Results
Micro – finance Institution Development
Technical Risks Sharing
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S
/N
PROJECTS/PROGRA
MMES
AREAS OF SYNERGY/COMPLEMENTARITY WITH RUFIN
4.
National Fadama –
III Development
Programme (NFDPIII)
• Group and Cooperative Development
• Savings and Credit Scheme
5.
National
Programme for
Food Security
(NPFS)
• Savings and Credit Schemes
• Group and Cooperative Development
• Enterprise Analyses
• Capacity building and Training
• Information Sharing
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In addition to these, RUFIN is to work closely with the following projects and programmes:
•
Promoting Improved Sustainable Microfinance Services (PRISMS) funded by USAID
•
DFID supported Pro-poor Financial Services Programme (ProFinS)
•
GTZ assisted Employment Oriented Private Sector Development Project; and
•
UNDP Supported Micro-finance Projects
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Table 2: Complementarity and Synergy Potentials for RUFIN
S/N
DONOR
PROJECTS/PRO
GRAMMES
COMPLEMENTARITY /SYNERGY POTENTIALS FOR RUFIN
1.
USAID - Funded
PRISM
• Support for Microfinance Banks
• Training and Operational modalities for microfinance banks
• Bank refinancing and guarantee mechanism; and
• Capacity building of CBN to supervise and regulate microfinance banks
2.
DFID - Supported
ProFinS
• Funding of Microfinance Institutions
3.
GTZ Supported
Private Sector
Development
Project
• Operations and Capacity building
4.
UNDP – Assisted
MFIs
• Capacity building of CBN
• Operations
• Support for Microfinance Advisory Board (MAB) for policy review and
coordination
• Meetings
• Trainings
• Refinancing programmes of Banks/MFIs
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7.0 Expected Outcome of this Relationship:
•
Improved mobilization of resources and overall performance
•
More effective participation in development fora
•
Enhanced institutional capacity of micro finance and other financial institutions
•
Enhanced operational synergy
•
Increased effectiveness and efficiency savings;and
•
.
Creation of locally and nationally recognized procedures.
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9.0 Framework to Guide and Promote Cooperation and Collaborations between RUFIN and
other Related Projects
In order to streamline processes, ensure cost savings, achieve synergies and reduce overlap in
field operations, the following guidelines are proposed:
•
At the National level, RUFIN should organize Annual Rural and Microfinance Conference where
current issues related to rural microfinance practices, policies and framework conditions will be
discussed.
•
Similar workshops should also be convened by RUFIN projects at the State level to tackle state
specific issues, gather and collate inputs for the national workshop.
•
Collaborating donor projects should continuously strive to improve their effectiveness and efficacy
on ground through joint operational activities at the national, state and site levels. These can be in
form of; joint field missions to address critical issues along mandate areas, consolidated mission
reports, joint project supervisory roles and operation of joint steering committees.
•
We recognize the roles of FADPEC and ADPEC/ARDEC at the Federal and State level
respectively and are of the opinion that these institutions should be used to coordinate and
consolidate the Work programmes, with a view to ensuring that projects proposed derive financial
services from RUFIN.
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10.0 Conclusion
Ladies and gentlemen, the objective of strengthening micro finance institutions and creating
viable and sustainable rural financial system in the country will be better achieved through
effective collaboration and coordination of all parties involved. This should be done through
capacity building of requisite stakeholders, synergy of operations, information and knowledge
sharing, and regular consultations with development partners.
Thank you for Listening !
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