Cooperative Development Program: Technology and Innovation for Financial Inclusion (CDP TIFI)

August 2018 – August 2023
Kenya, Guatemala, Burkina Faso

 

Project Overview

Although financial cooperatives are uniquely positioned to deliver livelihood-enhancing financial services including savings, credit, and insurance, evidence shows that there is significant unmet demand for small and medium enterprise (SME) credit in developing countries. This is in part because financial cooperatives and credit unions do not have the capacity and tools to deliver SME credit. Only six to eight percent of adults in CDP TIFI target countries have access to credit, compared to 11 percent globally and 34 percent in the United States (World Bank Global Findex 2017, https://globalfindex.worldbank.org/). Women, youths, and rural adults have even lower access to credit than average.

The CDP TIFI activity, funded by USAID will increase lending to small and medium enterprises (SMEs) by deploying the World Council SME Lending Toolkit, starting in three countries – Burkina Faso, Guatemala, and Kenya – each with its own key partner: Confédération des Institutions Financières de l’Afrique de l’Ouest (Confederation of Financial Institutions of West Africa, CIF), Federación Nacional de Cooperativas de Ahorro y Crédito (National Federation of Savings and Credit Cooperatives, FENACOAC), and the Kenyan Union of Savings and Credit Cooperatives (KUSCCO). These partners represent and provide technical support to multi-million-member networks of credit unions.

The World Council SME Lending Toolkit is designed to:

Quarterly Update (July 2019)

During this quarter, CDP TIFI continued the development of the SME Lending Toolkit with our partners FNACOAC, CIF, and KUSCCO. Equipped with the results of analyses conducted in the previous quarter to study existing technologies, products, and SME lending strategies in each of the target countries, this quarter, the program worked towards the development, adaption, and refinement of financial forecasting tools, cash flow analysis, and other diagnostic and training materials with our partners. Market, financial, and legal studies that were started in the previous quarter in Kenya and Guatemala are concluding; the results of the studies will inform the products and targeted SME sectors for lending. 

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