The African Facility: a look back at our first microfinance technical assistance program

In 2013, alongside the French Development Agency (AFD), the Foundation launched its first technical assistance program: the African FacilityThe objective of this facility is to support small and medium-sized rural microfinance institutions with a strong social impact in sub-Saharan Africa. Eight years after its launch, the Facility's performance demonstrates the importance of providing not only financial but also technical support to partner microfinance institutions.

Through the African Facility, the Foundation and AFD supported 26 microfinance institutions, which in turn financed the income-generating activities of more than 500,000 borrowers with average loans of around €200. With 328 technical assistance missions completed, the program covered numerous areas of expertise, from developing environmental strategies to digitizing the credit granting process and strengthening governance.

The Facility has helped strengthen the risk profile and consolidate partner organizations. Although it is difficult to isolate the effects of technical assistance on performance developments, the Foundation was able to observe the impact of the Facility in the context of the study " Our technical assistance system ", carried out with the support of CERISE, an organization specializing in impact measurement. An overall increase in the number of active borrowers and outstanding credit, an improvement in operational self-sufficiency, as well as efficiency gains were visible among the beneficiary institutions.

To conclude the program, the Foundation organized the Facility's final and 6th Forum in Kigali in October 2021, on the sidelines of African Microfinance Week, with all beneficiaries and partners. This was an opportunity to take stock of the program and highlight the program's best practices.

Today, technical assistance is one of the Foundation's core activities. What began as a single, successful adventure with the African Facility is now a set of six technical assistance programs, with €7.1 million in grants under management in 2021. A vector of change and resilience, technical assistance is a key focus of the Foundation's development and will be an integral part of the 2022-2025 Strategic Plan.