nternational Technical Assistance to Institutions in the Microfinance and Islamic Finance Sector

COSTUMER
CENTRAL BANK (DJIBOUTI)│Technical Assistance to Microfinance Institutions and Islamic Microfinance
ACTIVITY AREA
Microfinance - Islamic Finance
PROBLEM

The microfinance sector in Djibouti is still in a state of incubation, marked by a low level of development. The structuring and institutionalization of the microfinance industry only began in 2007 with the entry into force of the first Law regulating this activity and the adoption of a national strategy for the development of microfinance. microfinance. The microfinance landscape is mainly made up of the Caisse Populaire d’Epargne and Credit (CPEC), which groups together several MFIs organized in the form of a savings and credit cooperative. The current offer of MFI products and services focuses exclusively on the financing of the tertiary sector, mainly in the commercial sector. The agricultural sector is under-represented while market penetration, with nearly 10,000 members at the CPEC of Djibouti, or about 6% of Djiboutian households, is still very weak compared to the country’s potential. It is in this respect that international technical assistance has been required by the central bank of Djibouti to accelerate the development of MFIs in Djibouti, and by the same increase the market share.

SOLUTION OFFERED BY YOUMANN

For the success of this technical assistance mission, it was proposed and implemented the following points:
– Institutional, organizational, financial, governance and human resources management;
– Development of a plan for strengthening and technical, organizational, financial and HR support of the institutions;
– Organization of constituent general meetings of cooperative companies, partners of MFIs;
– Training of agents in MFI accounting.
– Revision of the procedures manual
– Migration of the system and the sanitized accounting data on SAF 5
– Remediation and validation of CPEC accounts

RESULTS OBTAINED OR ACHIEVEMENTS

At the end of the mission, it was realized:
– A capacity building plan for CPEC MFIs;
– Incorporated cooperative societies;
– Accounting staff trained in MFI accounting and SAF 5 software;
– System and accounting data integrated on SAF 5;
– CPEC accounts remediated and validated.