BACKGROUND

Microfinance institutions (MFIs) play a critical role in poverty alleviation and economic empowerment of marginalised communities in the MEFMI region. Microfinance has become accepted as an integral part of the financial development strategy which strengthens the link between financial development, sustainable economic growth and poverty alleviation. For instance, research has indicated that there are economies where microfinance has played a significant role in the empowerment of women and rural communities and has become an important driver in the achievement of Sustainable Development Goals (SDGs). Historically, MFIs started as microcredit programmes to supply credit to the poor. However, they have quickly evolved into technology and market-orientated providers of demand-driven financial services including savings, micro-insurance, consumption loans, leasing products, and other services.

Since MFIs have become a significant component of the financial sector, they need to be regulated properly. As such, it is imperative that regulators and policymakers develop a solid understanding of the importance of microfinance in the achievement of national development goals in order to facilitate the development of an enabling yet robust regulatory environment for the sector.

This course seeks to introduce participants to the fundamentals of regulating microfinance institutions.

OBJECTIVES

The objective of the course is to improve participants’ knowledge of:

1. The key and unique features of microfinance;
2. The role of microfinance in sustainable economic development;

3. The microfinance risk management framework; and

   The regulation of microfinance institutions.