DIG works with KfW to Assess Microfinance Market in Yemen and Make
Significant Investment Into Sector
DIG conducted the assessment on behalf of KfW in the summer of 2005.
The purpose of the assessment was to review three potential options for a
KfW investment in the microfinance sector in Yemen, and to make a
recommendation as to which option represents the most appropriate course
of action for KfW. Options reviewed included: (1) investing in the Social Fund
for Development, an apex organization mandated by the government to
support the microfinance industry in Yemen; (2) investing in a commercial
bank interested in entering the microfinance market through a
“downscaling” initiative; and (3) investing directly in a promising
microfinance institution . DIG made tis recommendation in November
2005. Additional work will include an in-depth assessment of the
recommended option(s) and eventually technical support to ensure the
investment is successful.
DIG Conducts Feasibility Study for Start-Up of Microfinance Bank in
Afghanistan
DIG conducted a feasibility study to asses the potential for establishing a
commercial microfinance bank in Afghanistan. Through in-depth in-country
assessments, DIG analyzed the potential demand for microfinance services,
as well as the repayment capacities of potential clients from micro, small
and medium enterprises (MSMEs.) As part of this study, DIG surveyed
approximately 1,300 microenterprises and analyzed data gathered on 70
representative SMEs. DIG also reviewed the local regulatory framework for
licensing and operation of an MSME bank. Following the analysis of survey
data, DIG is producing an in-depth market assessment report and is
proposing a bank implementation strategy based on the existing demand
and supply of financial services.
Significant Investment Into Sector
DIG conducted the assessment on behalf of KfW in the summer of 2005.
The purpose of the assessment was to review three potential options for a
KfW investment in the microfinance sector in Yemen, and to make a
recommendation as to which option represents the most appropriate course
of action for KfW. Options reviewed included: (1) investing in the Social Fund
for Development, an apex organization mandated by the government to
support the microfinance industry in Yemen; (2) investing in a commercial
bank interested in entering the microfinance market through a
“downscaling” initiative; and (3) investing directly in a promising
microfinance institution . DIG made tis recommendation in November
2005. Additional work will include an in-depth assessment of the
recommended option(s) and eventually technical support to ensure the
investment is successful.
DIG Conducts Feasibility Study for Start-Up of Microfinance Bank in
Afghanistan
DIG conducted a feasibility study to asses the potential for establishing a
commercial microfinance bank in Afghanistan. Through in-depth in-country
assessments, DIG analyzed the potential demand for microfinance services,
as well as the repayment capacities of potential clients from micro, small
and medium enterprises (MSMEs.) As part of this study, DIG surveyed
approximately 1,300 microenterprises and analyzed data gathered on 70
representative SMEs. DIG also reviewed the local regulatory framework for
licensing and operation of an MSME bank. Following the analysis of survey
data, DIG is producing an in-depth market assessment report and is
proposing a bank implementation strategy based on the existing demand
and supply of financial services.
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