MFI Financing Strategy: Guidelines and Template

This report recommends that MFIs should commit to 'best practices' in fund management and sourcing, if they are to access private capital required to meet their growth and sustainability goals. Strongly emphasizing on a strategic approach to funding and disciplined management of funding plans, it states that:

• Strategic approach must be based on strong assumptions of future performance and operating environment;
• Setting funding goals is critical, and smaller MFIs must develop strong business planning capacity;
• Meeting funding goals requires management structures, procedures and policies that match the complexity and volume of liabilities;
• Structured Investor Relations Program (IRP) is the most efficient and effective way to source capital.

In conclusion, MFIs that plan and execute funding search and management in a disciplined and structured manner will improve their ability to access private capital, which is a key element in serving poor people with appropriate financial services.