Tackling the Growth Challenge: Working with MFIs in Kenya and Tanzania
This report describes the design and implementation of the Africa Microfinance Growth Centre (AMGC), a leadership development program for helping early stage MFIs overcome growth barriers by strengthening strategic competences of CEOs and training staff in operational areas. The 14 month program was launched in July 2009 with 11 MFIs and 16 participants.
The goals of AMGC were to improve ability of small MFIs to grow rapidly, to increase financial access for small income and rural families and to demonstrate that MFIs in East Africa can achieve scale in untapped markets. The program included leadership and growth workshops, strategic planning workshops, communication training and functional training. It also consisted of support elements, namely peer network, mentorship program and relationship management.
The report identifies lessons for other efforts in East Africa to support early stage MFIs. These include:
- Advantages of continuity and integrated nature of program;
- Importance of selection of appropriate MFIs;
- Benefits of having more than one participant per MFI;
- Benefits of on-site inclusive strategic planning;
- Lasting impact of peer network;
- Impact of communication tools;
- Inconsistent impact of mentoring;
- Adverse effects of weak governance on growth.
