Welcome on PlaNet Finance Middle East website!
Context - The needs of the microfinance sector in Jordan:
In the early 1990&rsquot;s the Jordanian economy was threatened by an increasingly high unemployment rate, growing poverty and rising prices. To help reduce the effect of these trends on the economy, initiatives to launch a sustainable microfinance industry were taken by the Government of Jordan in 2005, through the Ministry of Planning & International Cooperation (MOPIC) in partnership with donors like USAID. This was the first initiative to develop a National Microfinance Strategy in an Arab country. Jordan now has one of the highest market coverage rates in the region although the there is a potential demand in the market that is not covered.
In 2006, PlaNet Finance opened an office in Jordan and initiated a large Assistance Program, thanks to PF UAE partners and Evens Foundation. PlaNet Finance was able to conduct several trainings, created the first Jordanian Microfinance Portal and assisted one of the biggest MFIs in its creation. With a strong presence among the Jordanian Microfinance Network (Maje), PlaNet Finance was proposed by the MOPIC and the French Agency for Development (AFD) to conduct the first Impact Study.
For more information on the PlaNet Finance projects in Jordan:
www.planetfinance-as.org/EN/projets.php
Context - The needs of the sector in Afghanistan:
The end of the war in December 2001 saw a huge unmet demand for microfinance in Afghanistan but in a non-functioning financial sector, a total absence of commercial players willing to serve the poor and a lack of delivery capacity among existing MFIs. In 2003, MISFA - the Microfinance Investment and Support Facility, Afghanistan – was created in order to get donor coordination right from the start and avoid the counter-productive efforts that have emerged from conflicting donor objectives in other post-conflict situations. Its mission is to structure the sector, pooling diverse donor funding mechanisms and converting them into streamlined, flexible support to about 15 MFIs in the country.
In 2009, MISFA still faces several problems to develop microfinance in the country. One of the most important is the security situation. Indeed it is not easy to move around in Afghanistan for both staff and clients because of numerous interdictions to take the road. A second challenge is that the banking system is not as evolved as in other developing countries. An other problem is that the MFIs acting in Afghanistan are large international MFIs so they have difficulties in knowing the local economy. Economic situation does not facilitate microfinance’s development because it is not vibrant and it is based on the poppy farming, a drug-based activity which must be replaced by a mainstream one. It is also hard to recruit microfinance staff because of the lack of educated people (due to the destruction of the education system during the Taliban regime) and the high cost of recruiting expatriate staff.
PlaNet Finance Middle-East works with one of the MFIs, SUNDUQ, non-profit status, whose aim is to contribute to alleviate poverty and improve vulnerable communities in Afghanistan, with particular emphasis on rural areas of the Eastern Region (Nangarhar, Laghman and Kunar). The main specific problem faced by farmers of those regions is the lack of cash to invest in agricultural inputs. SUNDUQ uses the village banking methodology to provide credit to rural households. The set of agricultural loans that the MFI is developing is focusing on agriculture, horticulture and animal husbandry.
For more information on the PlaNet Finance projects in Afghanistan:
www.planetfinance-as.org/EN/projets.php
Context - The needs of the sector in Oman:
Oman is a 3.2 millions inhabitants country, with an unemployment rate of 15%. In 2005, no microfinance initiative had been started and there was very few information on the demand and the needs of micro and small entrepreneurs. However there were strong concerns for the future about the employment situation. Implementing a microfinance program should therefore be investigated under the focus of:
In 2005, PlaNet Finance launched the initial phase of its 3-year program for Oman with the financial partnership of Khimji Group and Mr. Samir Fancy, and Mr Al Barwani. The aim of this program is to create the first microfinance program in Oman, in order to foster entrepreneurial spirit and create business opportunities for poor, low-income or assisted populations. PlaNet Finance will then provide technical assistance to the new MFI for the next 3 years.
The project is on going.
For more information on the PlaNet Finance projects in Oman:
www.planetfinance-as.org/EN/projets.php