ANNUAL REPORT 2006 38409 CONSULTATIVE GROUP TO ASSIST THE POOR ANNUAL REPORT 2006 CONSULTATIVE GROUP TO ASSIST THE POOR CONTENTS Our Mission 2 About This Report 3 Activities and Accomplishments 4 Promoting Diverse Institutions and Delivery Channels Developing Diverse Pro-Poor Financial Services Fostering Supportive Policy Environments Helping Funding Agencies Use Their Resources More Effectively Building Financial Transparency Monitoring and Evaluation Communications and Publications New Publications 21 Member Donors 23 Executive Committee 27 Investment Committee 29 Staff Biographies 30 Financial Statements 36 ii | CGAP Annual Report 2006 CGAP Annual Report 2006 | 1 OUR MISSION C GAP works toward a world in which poor people are considered valued clients of their country’s financial system and evey poor person in the world has access to useful financial services at their doorstep. To this end, we serve financial service providers, funders, and governments through our: • Advisory services • Research and innovation • Standards and good practices • Training and knowledge dissemination For more on CGAP’s work, please see www.cgap.org or email cgap@worldbank.org for a copy of our brochure. 2 | CGAP Annual Report 2006 ABOUT THIS REPORT This Annual Report outlines CGAP’s work in fiscal year 2006. This work is described according to the themes set forth by our members for the period 2003–2008: Promoting Diverse Institutions and Delivery Channels is essential to achieve the kind of scale and sustainability that will make a durable impact on poverty. This requires the engage- ment of a broad range of institutions and delivery mechanisms to deliver financial services to the poor. Developing Diverse Pro-Poor Financial Services is necessary because different segments of the poor need different kinds of financial services. Emphasis is placed on identifying and learning from innovative products and services that reach the very poor. Fostering Supportive Policy Environments is accomplished through the dissemination of consensus guidelines on appropriate microfinance regulations, strategic advice requested by policy makers and regulators, and research on the appropriate role of governments. Helping Funding Agencies Use Their Resources More Effectively entails building con- sensus and good practices, providing technical support to donor agencies and other funders, and building donor staff capacity. Building Financial Market Architecture creates information and technology architecture needed to support the full integration of finance for poor people into mainstream financial markets. Communications and Publications is a critical component of CGAP’s role as a key knowledge center and convener for the microfinance industry. Monitoring and Evaluation details the approval and monitoring of CGAP’s financial com- mitments to external institutions and CGAP initiatives. CGAP Annual Report 2006 | 3 ACTIVITES AND ACCOMPLISHMENTS Promoting Diverse Institutions and Delivery Channels C GAP is focused on overcoming the • Marketing for target-group oriented lack of sufficient retail capacity as campaigns, product design, new product the single most important bottle- launches, and image building neck in scaling up of microfinance services • Training in good practice microfinance for poor people across the world. To this and lending technologies end, we have continued to work with a • Strategic planning and development and variety of institutions and delivery channels human resource management in fiscal year 2006. In FY 2005, building on its work as part Retail Advisory Service. Through the of the Middle East microfinance initiative Retail Advisory Service (RAS), CGAP advis- (see Regional Initiatives), CGAP worked es commercial banks on leveraging their with Cairo-Amman Bank to help boost its existing branch and back-office infrastruc- microfinance services, including in the West ture to serve microfinance clients. CGAP Bank and Gaza. In FY 2006, the RAS list of was an early leader in the approach of bank clients grew dramatically to include working with existing banks and has more BBS (Botswana), Ecobank (Ghana), Equity recently formalized this under the RAS. The Bank (Kenya), Capitec (South Africa), and RAS offers banks and other commercial Forus Bank (Russia). Work continued with retail providers a package of technical assis- the Cairo-Amman Bank. Upcoming likely tance, co-financed between the bank and partners include the Savings Bank of Syria CGAP, and put together and overseen by a and BMCE (Morocco) as well as financial CGAP senior staff member. In addition to institutions in India, Nigeria, Pakistan, and CGAP’s aim of bringing large commercial Senegal. players into the market, the RAS also will Social Performance. In fiscal year 2006, serve to build capacity and markets for local CGAP continued to work with key stake- consultants, who are given priority wherev- holders, including Ford Foundation and er possible. The RAS also works with local Argidius, to develop a global reporting for- and international networks and technical mat for microfinance institutions that will assistance providers. RAS services include: enable them to track their social perform- • Management information system (MIS) ance: from determining the poverty levels design to customize each bank’s existing of clients to tracking whether clients are information technology (IT) capacity to improving their economic conditions, their fit microfinance specifications access to healthcare services, and their chil- • Product and procedure design, guideline dren’s school attendance. CGAP, along with creation, and integration of microfinance the Ford Foundation and Argidius, also cre- into existing services ated the Social Performance Task Force to promote a double bottom line in the indus- 4 | CGAP Annual Report 2006 try. It currently includes over 100 practi- Catalyzing Commercial Banks to tioners, funders, and service providers. Serve the Poor: Africa International Global meetings of the task force were held Financial Holdings in Washington, DC in October and in Rome In FY 2006, CGAP closed out an ambi- in April. tious effort to attract international com- Pro-Poor Innovation Challenge. One of mercial banks into the African microfi- the biggest challenges facing the microfi- nance market. Africa International nance industry today is developing financial Financial Holdings was set up to pur- products and methodologies for very poor chase African banks, bringing private- or difficult-to-reach populations. The CGAP sector efficiency and profitability to Pro-Poor Innovation Challenge (PPIC) gives financial markets and, most importantly, immediately disbursed and flexible awards introducing an incentive to reach low- up to $50,000 to microfinance organiza- end clients. It was a bold and risky tions that have developed innovative undertaking which we wagered had a methodologies to deepen poverty outreach 50 percent chance of success. and impact. Of particular interest are micro- Ultimately, the fund did not succeed finance providers that implement new and in acquiring any African banks, owing to innovative services or that work with clients It is now widely the limitation of the fund to invest only who are marginalized in geographic, eco- in state banks and the dearth of such pri- accepted that banks nomic, or other ways. To date, CGAP has vatization. That said, some benefits were can profitably serve granted PPIC awards to 49 leading-edge achieved. Three years after the fund’s microfinance organizations from Asia, the broad retail launch, after a concerted advocacy effort Africa, Latin America, and Eastern Europe. market, including and several near-successful negotiations, The FY 2006 round of the PPIC, its eighth, it is now widely accepted that banks can microfinance clients. honored Crédit-Epargne-Formation (Mada- profitably serve the broad retail market, gascar); Institution de Microfinance HOPE including microfinance clients. AIFH (Democratic Republic of Congo); Trickle Up activities, including its proposed busi- Program with Bandhan (India); Union des ness plans for commercial banks, which Clubs d’Epargne et Crédit (Chad); and were made public in Zambia and Nige- XacBank (Mongolia). They were selected ria, and its private discussions with bank from an applicant pool of more than 250 executives, central banks, and finance microfinance institutions from around the ministers, contributed to this awareness. world. A 2003 survey found that, on aver- Since then, more and more retail banks age, microfinance institutions saw their have been approaching CGAP and other assets grow by 79 percent after they institutions to help them develop micro- received the award (although it is, of finance products. course, impossible to determine how much of this growth is directly attributable to PPIC). Many awardees credited the PPIC/CGAP “seal of approval” for access to additional funding. As important, awardees have added more than half a million new clients living beneath the poverty line. CGAP Annual Report 2006 | 5 Developing Diverse Pro-Poor Financial Services C GAP promotes the development of cles, a “virtual study tour” of savings case strong and dynamic domestic finan- studies around the world, and original cial markets that provide quality research and information on ongoing initia- services that meet the needs of a wide range tives, including those funded by CGAP of poor clients, especially poorer clients member donors. FY 2007 will focus on dis- than those currently reached by microfi- semination and uptake of the knowledge nance. In FY 2005, CGAP significantly generated in the previous two years. The scaled up its savings initiative and contin- savings team will work with the CGAP com- ued to push its earlier work on money munications team to develop a broader transfers. We also continued focusing on communications strategy for knowledge reducing transaction costs through the use dissemination and uptake. of e-payment technologies, to ensure that Graduation programs. Building on an delivery of ever smaller financial transac- earlier Focus Note examining the work of tions can be made cost effectively. the Bangladesh IGVGD program, an inno- Savings. The CGAP Savings Initiative vative effort to allow the destitute to “grad- gathers, generates, and disseminates infor- uate” into becoming microfinance clients, mation and tools designed to improve the CGAP published a paper in FY 2006 making supply of small-balance deposit facilities. It the case for linking safety nets and financial also aims to systematically integrate the sav- services to help lift the poorest onto the bot- ings mobilization agenda into the full spec- tom rung of the economic ladder. “Graduat- trum of CGAP’s activities, helping build ing the Poorest into Microfinance: Linking financial systems that work for the poor. In Safety Nets and Financial Services” provides FY 2006, CGAP published a country-level examples of successful linkages between savings assessment—on Uganda—to pro- safety net and microfinance programs and vide donors, governments, international aims to initiate a dialogue between experts networks, and technical service providers in social protection and microfinance. with a methodology for analyzing opportu- Building on this research, CGAP has begun nities and constraints to savings mobiliza- identifying pilot graduation projects and tion at the country level. The assessment microfinance institution partners to imple- complements four others already completed ment them. This work will be carried out in in Mexico, the Philippines, Benin, and FY 2007. Bosnia. The assessments served as road tests Money Transfers. Despite increasing of a methodology that will be published as a attention on international remittances in toolkit for donors and other funders in certain markets, the poor still lack access to 2006. Dissemination of this work is cen- affordable and reliable domestic and tered on a first-of-its-kind online portal: the intraregional money transfer services. Savings Information Resource Center Recent increases in competition have low- (SIRC). The SIRC (www.cgap.org/savings) ered the price of money transfers and mul- offers a user-friendly and accessible way to tiplied service options between Latin Amer- obtain cutting-edge information about ica and the United States and Europe. small balance deposit mobilization, includ- However, similar developments have not ing a searchable database of over 200 arti- yet occurred in other transcontinental, 6 | CGAP Annual Report 2006 regional, and especially domestic money 2007 and will be finalized in June 2007. transfer markets. CGAP has undertaken a Next steps include launching a proposed range of activities designed to enable pro- technical assistance fund with the Interna- poor financial institutions to enter this mar- tional Fund for Agricultural Development ket in a strategically and financially sound and the European Union and hiring a full- manner. In FY 2006, CGAP launched phase time coordinator to manage the fund and two of its money transfers work, establish- issue a call for proposals. Also, CGAP chairs ing an advisory group in October to create a an advisory group on money transfers guide on strategic and operational issues which includes the International Monetary around money transfers for microfinance Fund, the World Bank, the UK Department providers and negotiating alliances with for International Development, and others. money transfer companies. CGAP hosted The advisory group seeks to identify risk- the first e-conference of this advisory group based approaches governments can use to in the third quarter of FY2006 and has since comply with new anti-money laundering completed a draft of the guide. The guide, regulation—regulation that can make send- which is now being edited, will be rolled out ing and receiving money more expensive for field testing in the first quarter of FY for the poor. CGAP Annual Report 2006 | 7 Fostering Supportive Policy Environments E xperience shows that government with government agencies seeking to can play a positive role in microfi- improve their policy environment for pro- nance as an enabler and facilitator. poor financial services. Priority is given to CGAP promotes and explores the appropri- policy work that concretely contributes to ate role of government and advocates for establishing appropriate enabling environ- avoiding inappropriate government behav- ments or has the potential to preempt the ior that hinders financial services for the establishment of policies or programs that poor, such as interest rate ceilings or subsi- might undermine the development of dized lending to specific target groups. In FY microfinance. In FY 2006, CGAP continued 2006, CGAP continued to step up its work to provide policy inputs, contribute to in this area. We have continued to expand workshops, and review drafts of microfi- our work beyond advising and disseminat- nance legislation for several countries, ing standards on regulation and supervision including Turkey and India. We also com- to include more qualified consultants in this pleted another country-level policy diag- Government can area and conducting research on topical nostic—this one in the West Bank and Gaza. issues. In FY 2006, we deployed six new This complements earlier assessments in play a positive role consultants as part of our policy consultant Jordan, Yemen, Morocco, and Tunisia. The in microfinance cadre. In addition, CGAP attracted 29 offi- CGAP report is “the most comprehensive as an enabler cials from central banks and ministries of analysis” of microfinance in the West Bank and facilitator. finance to attend microfinance training and Gaza, according to the World Bank’s courses, including the Boulder Microfi- representative there. Released just before nance Training Program in Turin, Italy. Palestinian legislative elections in January, Law Library. With the IRIS Center, a CGAP’s work was requested by the World research institute affiliated with the Univer- Bank and the United Nations special envoy sity of Maryland, CGAP launched the for the Gaza disengagement. Together with largest global database of microfinance- the Swedish Development Agency SIDA, related regulation and supervision for more the United Nations Capital Development than 50 developing countries in FY 2005. In Fund, and the French development agency FY 2006, the database continued to grow as AFD, CGAP also continued its longstanding one of the most popular resources on the collaboration with BCEAO, the West CGAP Web site and the affiliated Microfi- African Central Bank. On an ongoing basis, nance Gateway, drawing over 16,000 page CGAP also engages in multilateral policy downloads each month. New to the Law consultations with the BIS, the World Bank, Library (www.cgap.org/regulation) is a sec- the International Monetary Fund, and tion on microinsurance, which will go live other international financial organizations, in the first quarter of 2007. which in turn work directly with national International and Country-Level Policy authorities responsible for designing better Consultations. Upon specific request, CGAP policies to promote financial services for the also engages in country-level consultations poor. 8 | CGAP Annual Report 2006 Regional Initiatives In FY 2005, CGAP took several steps toward contributing more directly to the regional development of microfinance, particularly in the Middle East and North Africa (MENA), South Asia, Eastern Europe and Central Asia (ECA), and Africa. These regional initiatives allow for greatly enhanced two-way learning between CGAP and its international partners and the domestic clients we seek to serve. They also enable CGAP to more effectively serve clients in the field and raise awareness of good practices, cross-border learning, and the availability of CGAP and member donor services. Middle East and North Africa. Building which included input from a wide range of on its training and information dissemina- donors working in those countries and were tion activities in MENA, CGAP launched an hence extremely well-received by donors initiative to scale up microfinance in the and government officials. region, opening a regional office in Amman, Eastern Europe and Central Asia. In Jordan, and hiring its director. The CGAP cooperation with the Poland-based Microfi- Key Principles of Microfinance were nance Centre (MFC), in FY 2005 CGAP endorsed by an executive council advising launched a regional microfinance center for the MENA initiative, which is chaired by Eastern Europe and Central Asia based in Queen Rania of Jordan. Several partners, Almaty, Kazakhstan. This initiative builds including USAID, UNDP, and the Arab on an already robust partnership with MFC, microfinance network Sanabel, form an a partnership which has included transla- advisory body supporting the initiative. tion, printing, and distribution of CGAP Together with these and other partners, publications in Russian and a jointly-spon- CGAP completed several country diagnos- sored donor training course in Almaty. The tics, including in Yemen and Jordan, and is center has conducted several country diag- working directly with the Ministry of Plan- nostics and is assisting several donors and ning in Jordan and the Central Bank of governments in the region in shaping their Morocco to put recommendations into support programs. In April 2006, MFC and practice. We also led a donor mapping exer- CGAP co-sponsored a highly publicized and cise that has helped clarify the past and well-attended event with financial sector future role of external funding in the policymakers and public officials from nine region. In FY 2006, CGAP took the first Commonwealth of Independent States steps toward establishing a microfinance countries, who renewed their commitment training program in the region, completing to “microfinance-friendly” policy reform. an assessment with members of its consul- The Krakow III Policy Forum on Law and tative group. We also completed policy diag- continued on next page nostics in Palestine and Algeria, both of CGAP Annual Report 2006 | 9 Regulation Governing Microfinance was held in Warsaw, Poland. Africa. In Africa, CGAP has contin- ued its deep involvement with and over- sight of CAPAF, the regional training project working in 14 Francophone countries and co-funded with MAE/France and USAID. CGAP also worked with Sida and UNCDF to finalize a three-year regional project with the West Africa Central Bank (BCEAO) to strengthen regional regulations, supervi- sion, and information in the eight-coun- try monetary union in West Africa. In addition, CGAP finalized the research on African microfinance institutions con- ducted with the MIX in 2004–05, and the results were published by the MIX in April 2005 as “Outreach and Financial Performance of Microfinance Institu- tions in Africa.” In FY 2006, CGAP engaged closely with donors working in the region, initiating a funding flows exercise that has yielded valuable data on the amount of resources going to the institutional, market infrastructure, and policy levels of the financial systems of African countries. The research is help- ing donors realign their priorities to bet- ter serve poorer populations, especially in rural areas. Also in FY 2006, CAPAF hosted a regional technology trade fair, the Technofoire, that highlighted some of the cutting-edge issues around money transfers, mobile phone banking, and information technology for microfi- nance institutions. 10 | CGAP Annual Report 2006 Helping Funding Agencies Use Their Resources More Effectively T he funding landscape for microfi- quarters; codifying good practices; and shar- nance looks radically different today ing and leveraging staff capacity and knowl- from how it looked 10 years ago. edge. To take stock of progress and remain- New entrants like private foundations and ing challenges, and to define the next social investors offer fresh funding options priorities in its Aid Effectiveness Initiative, and flexibility. International financial insti- CGAP will convene a second meeting of tutions now have over $2.5 billion in micro- heads of development agencies, Better Aid finance investments. Public bi-and multilat- for Access to Finance, on October 20, 2006. eral agencies continue to play a significant role and their estimated $800 million to $1 Advisory Services to Funding Agencies billion committed to microfinance per year CGAP provides advisory support, brokering has the potential to help realize the vision of services, and technical assistance to help inclusive financial systems if properly allo- individual agencies improve their microfi- cated and managed. Unfortunately, the way nance operations. Typically, CGAP’s work donors and investors work is not always with agencies is focused on helping to effective; they too often do not follow good improve internal systems, including strate- practices. Moreover, much of the money is gic planning, better transparency, reporting, rushing to the same opportunities, failing to staff training, and knowledge management. respond to much-needed gaps, such as CGAP staff also provide direct inputs into capacity building, and competing unfairly early project design in selected cases. Final- with local or private flows. ly, CGAP staff, along with its hubs and part- Since the launch of an ambitious Aid ners, actively promote donor coordination Effectiveness Initiative in 2002, CGAP has mechanisms. learned a lot about what it takes for funding Examples of CGAP’s direct support for agencies to be effective in supporting micro- agencies in FY 2006 include technical work- finance. This learning is summarized in the shops at the Asian Development Bank and Aid Effectiveness Star—a framework of five the aid agencies of Japan, Finland, Norway, essential elements for improving the way and the Netherlands and technical review of development agencies work. CGAP’s funda- policies and procedures at the African mental premise in striving to improve the Development Bank, the International quality of aid is that it is the funding Labour Organization, and the Canadian agency’s responsibility to get its own house development agency CIDA. Work on peer in order to engage effectively in microfi- review check-ups, portfolio reviews, and nance. As one donor staff put it, “Change the European Union’s microfinance pro- starts at home.” gram for Asia, the Caribbean, and the Pacif- CGAP’s peer reviews of 17 development ic region are described in more detail below. agencies and country-level reviews of donor effectiveness in four countries have been Peer Review Check-ups well received and prompted concrete At their request, CGAP conducted peer changes. CGAP has been providing advisory review check-ups of the French develop- services to improve individual agencies and ment agency AFD, the International Fund donor groups at the field level and head- for Agricultural Development (IFAD), and CGAP Annual Report 2006 | 11 the Swedish development agency SIDA to systems for accountability of performance gauge progress achieved since the peer and concentrate on what it does best— reviews and make additional recommenda- applying flexible grants. tions for improving effectiveness. Agencies found the check-ups useful to reignite Portfolio Reviews momentum around the effectiveness agen- CGAP has developed a robust methodology da, acknowledge successes, and prioritize to determine the quality of a donor’s micro- areas for improvement. The check-ups also credit portfolio, based on expert grading of permitted CGAP staff to craft new strategies individual projects’ repayment rates and for how best to organize our work. All three overall cost recovery. In April 2006, CGAP agencies have made progress and report a published a Focus Note on the portfolio positive impact of the peer reviews. reviews CGAP conducted of the World Bank AFD is a true success story in aid effec- and UNDP. The results of the evaluations tiveness. It has made great improvements in revealed a disappointing picture: in both its internal systems and increased its ability agencies, less than a quarter of the projects to respond to the different and evolving that funded microlending were judged suc- funding requirements of retail institutions. cessful. The good news is that the portfolio CGAP’s work with Appropriate instruments, good knowledge reviews led both agencies to commit to con- of country contexts, highly competent staff, crete changes to improve their microcredit agencies is focused and strategic involvement of top manage- portfolios. For example, the World Bank is on helping to ment are the ingredients of its success. taking steps to flag all projects with a credit improve internal Given AFD’s strong performance, CGAP component and to ensure an upfront, early systems, including suggested that the agency expand its fund- technical review of project design. In addi- ing for microfinance. tion, CGAP provided inputs on similar exer- strategic planning, IFAD’s check-up in October 2005 con- cises in CIDA and the development agencies better transparency, firmed a significant change in staff’s accept- of Denmark and Finland. reporting, staff ance of a new way of working on rural finance that embraces good practice princi- EU/ACP Microfinance Framework training, and ples. IFAD has taken steps to improve project Programme knowledge performance tracking (38 microfinance insti- CGAP’s work with the joint European management. tutions in seven countries now report via the Union and the African, Caribbean and Microfinance Information eXchange), devel- Pacific States (ACP) Microfinance Frame- op staff’s rural finance skills, and implement work Programme aims to help the poor in an aggressive learning agenda (partnerships ACP countries get better access to appropri- with ACCION, Freedom from Hunger, etc.). ate financial products and services. The ACP However, the remaining challenge is to Programme seeks to provide a demonstra- translate these positive steps into improved tion model for effective funding of microfi- practice in implementation and better per- nance within the European Community formance in operations. and other development agencies. This year, SIDA’s financial sector team used its 2002 the Programme designed a competitive call peer review as a roadmap for change. SIDA for proposals and subsequently awarded 11 has made significant progress as revealed in grants (worth 6,538,884 Euro) to strength- the April 2006 check-up, including broader en the institutional capacity of microfinance consensus on good practices and staff train- actors in ACP countries. Specifically, the 11 ing. SIDA needs to continue to upgrade its awards will help to diversify financial prod- 12 | CGAP Annual Report 2006 ucts and services, apply new technologies, expand to rural and remote areas, enhance transparency, and create microfinance banks. So important is the European Com- munity that CGAP now has one full-time staff member dedicated to supporting it. Country-Level Work In FY 2005 and FY 2006, CGAP extended its aid effectiveness initiative to the field. In addition to working though its wide net- work of contacts, partnerships, and hubs, CGAP launched a series of Country-Level Effectiveness and Accountability Reviews (CLEARs) in 2004. Through in-depth CLEARs in four countries, CGAP has collab- orated with over 550 microfinance man- agers, aid agency representatives, and gov- ernment officials. The findings of the reviews, published and available on CGAP’s Web site, have helped donors identify gaps in the financial systems in the countries where they work. They also revealed how the elements of effectiveness defined during the peer reviews play out at the country level. Beyond providing key analysis, the reviews also have sparked actions of donors individually and jointly, especially with regard to shaping programming decisions, improving the design of interventions, facil- itating advocacy with governments, and reigniting donor coordination. Sri Lanka CLEAR, October 2005 The December 2004 tsunami was no ordi- nary catastrophe. But the shortcomings of the reconstruction effort are once again prompting calls for better aid. What “better aid” could look like was the subject of the in-depth three-week review in Sri Lanka. Championed by GTZ, the World Bank, and the Stromme Foundation, the CLEAR involved interviews and focus groups with over 200 key government officials, microfi- nance managers, aid agency representa- CGAP Annual Report 2006 | 13 tives, and microfinance clients, including 36 their programming. There have been two international donors and investors that follow-up meetings in Madagascar with local fund microfinance. donors organized by CGAP since the CLEAR The CLEAR revealed that, overall, aid in May 2005. These meetings resulted in an agencies are ill-prepared to design and action plan to coordinate donor support to implement microfinance programs—espe- the Central Bank; strengthen microfinance cially in light of the massive influx of funds providers and improve transparency following the tsunami. They have too few through ratings and the development of a staff with appropriate technical expertise. multidonor technical assistance fund; and Moreover, many agencies confuse social reactivate the donor coordination group. transfers with financial services, making it difficult to build long-term, viable access to Good Practice Guidelines financial services. Most aid agencies also do and Information Resources not have or use proper monitoring and After two years of field testing and exten- evaluation tools and thus know little about sive feedback, CGAP completed the second the performance—and impact—of their edition of the guidelines, “Good Practice programs. Finally, donors lack a coordinated Guidelines for Funders of Microfinance.” Through in-depth approach. The guidelines translate 30 years of lessons CGAP is now working closely with part- learned into operational advice for develop- CLEARs in four ners on the ground committed to imple- ment agencies, foundations, social and com- countries, CGAP has menting important changes. CGAP has also mercial investors, international NGOs, and collaborated with joined with the United Nations Office of the others that help build financial systems that over 550 Special Envoy, headed by former U.S. Pres- work for poor people. They also promote ident Bill Clinton, to better coordinate harmonization on standards and good prac- microfinance donor efforts in the wake of the tsunami. tice. The second edition will be presented to managers, the heads of CGAP members for endorse- aid agency Follow-up in Cambodia, Madagascar, ment in October 2006. and Nicaragua To provide additional information and representatives, CGAP also remains engaged with donors, help operationalize the Good Practice and government government, and microfinance stakeholders Guidelines, CGAP also develops short briefs officials. in Cambodia, Madagascar, and Nicaragua to and operational tools. In FY 2006, CGAP help them put into action the recommenda- produced two CGAP Briefs for donors and tions made during CLEARs in these coun- investors (formerly Donor Briefs) on work- tries. In Cambodia, CGAP has been involved ing with savings and credit cooperatives in ongoing discussions with government and supporting community-managed loan decision makers about interest rates as well funds. CGAP also added a new operational as collaboration with leading donors on deci- tools section to its online donor informa- sions made after the CLEAR in October tion resource center that offers “how to” 2004. Following the CLEAR in Nicaragua in guides for CGAP tools and sample terms of February 2005, CGAP has been advising references. local donors on how to reignite their donor coordination efforts, tackle the proliferation of second-tier funds, and better harmonize 14 | CGAP Annual Report 2006 Building Financial Market Architecture A sound financial system for the poor • developing profitable products and serv- requires mechanisms to process ices that can help a wide variety of insti- small transactions at low cost, and tutions reach more of the world’s poor, to share transactional and institutional data especially in rural areas; that are accurate and comparable. Man- • building the capacity of financial institu- agers, regulators, auditors, domestic and tions that serve the poor and reducing international lenders and investors, and, the risks for new entrants to the microfi- indeed, poor clients themselves use this nance market, including commercial information to make sound decisions. banks; and CGAP invests in innovative technology- • ensuring that the regulatory environ- based approaches to reducing transaction ment in microfinance markets stimulates costs and producing standardized perform- growth and innovation while protecting ance data. It also supports market-based both consumers and financial providers. programs to encourage transparency. More information on the program is Delivery Technologies to Reduce Trans- available at www.cgap.org/technology. action Costs. Hi-tech devices are already Information Systems (IS) Fund. Many very much a part of poor people’s lives: in institutions require professional expertise to Africa alone, growth in cell phone use has help them analyze their business and tech- been most dramatic among the rural poor. nology needs, select a software package, or These cell phones can help move cash trans- improve their existing information system. actions out of branches, which largely do CGAP created the IS Fund in May 2004 to not exist among rural poor populations, and improve the capacity of microfinance insti- automate them, reducing the costs of serv- tutions to make better IS investment deci- ing poor people and helping reach millions sions, offering them co-financing to hire more with financial services. specialized IS consultants prequalified by In FY 2006, CGAP published a Focus CGAP. In FY 2006, CGAP helped finance 67 Note, “Using Technology to Build Inclusive detailed assessments of different microfi- Financial Systems,” that presented the nance institutions’ IS needs. More than 60 rationale for CGAP’s scaled-up technology such assessments have been completed in program. The program is support by the Bill two years. In FY 2007, we will outsource and Melinda Gates Foundation and works management of the IS Fund to our partner in partnership with a wide variety of multi- ADA, which also manages the Rating Fund. sector actors—from mobile network and This will streamline and rationalize the payment system operators to banks and process of both. other financial institutions. Through the Multidonor Rating Fund. The Rating program, CGAP will build and lead new and Fund is a multidonor initiative launched by innovative alliances, providing technical CGAP and the InterAmerican Development assistance and, in some cases, grants to Bank in 2001. In 2005 the European Com- design solutions that address the core chal- mission joined the initiative. The Rating lenges of microfinance today: Fund offers partial financing for ratings and assessments of microfinance institutions by CGAP Annual Report 2006 | 15 prequalified rating and assessment agencies. Reporting Standards (IFRS) and the CGAP The fund has three main objectives: (1) to Disclosure Guidelines. The awards, presented stimulate demand for rating and assessment for the second time in FY 2006, attracted services, (2) to increase the amount and nearly 150 entrants from across the globe. reach of market information, and (3) to Qualifying institutions submitted audited strengthen the capacity of service suppliers financial statements that were then judged to improve service delivery, product design, by an independent panel against interna- and marketing. By FY 2006, the Rating tional reporting standards, including the Fund had committed grants for more than IFRS and industry guidelines. The review 300 credit ratings and assessments. All of was also designed to provide feedback for the microfinance institutions that received entrants, with each receiving a detailed funding consented to publicly disclose their report offering concrete steps for improving performance information and made their their financial reporting. In FY 2006, there ratings available on the Rating Fund Web were six overall winners and over 100 merit site. Nearly all were first-time disclosures. awardees in two rounds. Also in FY 2006, This increased transparency has influenced CGAP donor members played an active role funding flows to microfinance institutions, in presenting the awards to institutions, making it easier to attract social investors’ helping to raise the profile of the award. The interest. Ratings are now often used by third round of the Financial Transparency microfinance investors as part of their Award was launched in June 2006. For preinvestment due diligence and invest- more on last year’s winners, visit ment monitoring. In FY 2005, CGAP out- www.cgap.org. sourced the Rating Fund’s daily manage- The Microfinance Information Exchange ment and market activities to the (MIX). Created by CGAP, the MIX was spun Luxembourg-based nonprofit ADA, its proj- off in 2002 as an independent partnership of ect administrator, and exited from Latin CGAP, the Citigroup Foundation, the America, where capital markets are more Deutsche Bank Americas Foundation, the developed and ratings are recognized as a Open Society Institute, and the Rockdale vital tool for interacting with capital mar- Foundation. CGAP retains board chairman- kets. The Rating Fund has reached its pri- ship and one other board seat. The MIX mary objective of improving transparency Market is a global, Web-based information of microfinance institution financial per- service that links microfinance institutions, formance and will end in FY 2007. Another donors, and investors. On the demand side, component of CGAP’s transparency work the MIX Market provides in-depth informa- that will continue is training of microfi- tion on the performance of more than 700 nance practitioners in auditing and other microfinance institutions, including finan- disclosure methods. In FY 2006, CGAP’s cial statements and ratings and assessment Francophone Africa regional program, reports of external evaluators. On the supply CAPAF, conducted auditor training for side, the MIX Market offers information on nearly 500 people, including audit seminars donor and investor funding, including terms in Togo. and conditions. Traffic to the site has more Financial Transparency Award. The than quintupled over the past two years. In CGAP Financial Transparency Award is FY 2006, CGAP continued its active involve- awarded to microfinance institutions that ment and oversight of the MIX operations. comply with the International Financial 16 | CGAP Annual Report 2006 Monitoring and Evaluation I n 2003, CGAP’s member donors direct- MIX, and the Microfinance Gateway. Sum- ed CGAP management to shift efforts maries that show current status of invest- from financial resource-intensive sup- ments are posted on the CGAP Web site and port at the retail level to more human- disseminated regularly to the CGAP Invest- resource intensive, market-building work. ment Committee and the Council of Gover- This has meant fewer grants to institutions. nors (see back of this report for more on CGAP still monitors and advises financial CGAP’s governance structure and for a full institutions, networks, and other partners list of current commitments). that have received CGAP grants; it also monitors the performance of CGAP initia- tives. Grants and technical assistance have been provided to more than 60 microfi- nance institutions and networks (in addi- tion to funding microfinance institutions through the Pro-Poor Innovation Chal- lenge, the IS Fund, and the Rating Fund). Currently there are only six grants with outstanding commitments to microfinance institutions or networks, most of which are co-funded with other donors and/or benefit more than one institution through a net- work or other leveraged structures. To monitor outstanding grants, CGAP staff analyze semester or quarterly reports against the minimum performance thresh- olds in the partnership agreement, review overall operations and performance, and conduct monitoring visits over the life of the grant. CGAP staff are also available to the grant recipients to provide technical guidance, consultant referrals, and advice; CGAP staff often play an active role. In addition to the direct grants, CGAP has 39 outstanding commitments to initiatives such as the Retail Advisory Services Fund, the Savings Initiative, the Rating Fund, the CGAP Annual Report 2006 | 17 Training and Capacity Building Middle East and North Africa, Latin Ameri- ca and Eastern Europe teach the seven A key constraint to sustainable microfinance courses in their respective regions. is the limited technical capacity of staff with- Microfinance Management Institute. in retail institutions and donor field agen- CGAP and the Open Society Institute (OSI) cies. In FY 2006, CGAP developed plans to formally launched the Microfinance Man- integrate all its training initiatives to give agement Institute (MFMI) in July 2003 to them a common governance structure. The advance management capacity in the aim is to maximize efficiency and synergies microfinance industry. MFMI has signed among the different programs, and respond agreements with 13 leading management more effectively to market demand. In early schools in Africa, Asia, Latin America, and FY 2007, the following three discrete proj- Russia to introduce microfinance manage- ects will be coalesced under the Microfi- ment into their curricula. All have begun nance Management Institute. research and teaching in microfinance man- Skills for Microfinance Managers. agement, drawing more than 500 new stu- CGAP’s global program for microfinance dents in FY 2006. In addition, the Universi- managers develops local capacity by provid- ty of Pretoria launched a Centre for ing training of trainers courses, plus course Microfinance, to serve as an African hub for materials and guidance to regional and promoting microfinance in academia. Both national training partners (which include the University of Pretoria and the Asian networks, private firms, and large microfi- Institute of Management added microfi- nance institutions with training depart- nance specializations within their masters ments). To date, CGAP has developed programs, and the Indian Institute of Man- seven, one-week “Skills for Microfinance agement Bangalore committed to develop- Managers” courses on best practices in ing a microfinance incubator to mentor financial and operational management for start-up and fledgling institutions. Also in microfinance institutions. These courses FY 2006, seven MFMI fellowships in micro- address interest rate setting and delinquen- finance management were awarded. The cy management, financial analysis, fellows work from their home institutions accounting for microfinance institutions, in Brazil, Bangladesh, Kenya, and Mongolia operational risk management, business to undertake research and develop academ- planning, information systems, and new ic materials and new courses. Thirty are product development. The courses are slated for completion in FY 2006. available in 12 languages: Chinese, English, French, Portuguese, Russian, and Serbo- CGAP Donor Training Croatian; and more recently, Arabic, Bahasa Following a strategic reorientation of the UN Indonesia, Nepali, Spanish, Telugu, and Capital Development Fund, CGAP took on Vietnamese. CGAP courses have been the full-time management of the CGAP/ offered more than 400 times to more than UNCDF microfinance donor training course. 10,000 people in 48 countries. More than In FY 2007, the MFMI will assume responsi- 40 local training partners in Africa, Asia, the bility for the course with the transfer of 18 | CGAP Annual Report 2006 CGAP’s top training specialist. CGAP staff reduction, economic development, private will continue to serve as faculty. The unique sector and business development, liveli- one-week training offers a hands-on course hoods, employment promotion, and gender. to learn how to support financial systems for In FY 2006, CGAP conducted three training the poor, including visits to microfinance courses—in Tanzania, Kazakhstan, and institutions. The course targets development Thailand. More than 60 professionals and government specialists who focus on attended the three courses, and all three areas such as pro-poor policies, poverty courses were highly rated by participants. CGAP Annual Report 2006 | 19 Communications and Publications C GAP’s strategy for communications Publications and outreach, across all technical In FY 2006, CGAP published 32 new pub- areas, is to focus on impact. We are lications and disseminated more than moving from a reactive to a more pro- 3,000 of these each month, including a active posture that anticipates events and first-ever book, which captures 10 years of issues, and seeks to influence outcomes CGAP experience. Published in coopera- early on. As such, the communications tion with the World Bank, Access for All: team is working with CGAP technical Building Inclusive Financial Systems lays out teams to design communications cam- in plain language what CGAP and others paigns around specific messages, thereby in the development field have learned lending a strong voice of CGAP and its about microfinance and its integration into members to particular issues. Improved the financial mainstream. planning and streamlined processes under- pin our communications, which strive to be The Microfinance Gateway engaging, relevant, and coherent. The Microfinance Gateway is the most visit- ed site related to microfinance and ranks as Knowledge Management the number one site on microfinance on Improved knowledge management and IT Google. In FY 2006, more than a million capacity for CGAP is key. Pulling together pages were downloaded on average each all of CGAP’s knowledge assets onto one month—nearly twice as many as the last platform will improve internal management reporting period. Visits to the site increased processes, allow for greater transparency significantly because of aggressive and regu- and engagement with our stakeholders, and lar (daily) upload of new content, the provide a more coherent set of resources for launch of two language sites, and revamped staff and shared information for our mem- resource centers. From the first quarter to bers and extended network. It will offer us the final quarter of the year, the number of the flexibility to tailor electronic and print pages requested grew from an average of distribution, so that we ensure consistent, nearly 270,000 to more than 740,000, rep- relevant, continuous, and on-time commu- resenting a 177 percent increase. Average nications. In FY 2006, CGAP began imple- number of unique users per month grew menting a Web-based collaboration tool from more than 18,000 in the first quarter that will help our staff and members access, to more than 25,000 in the fourth quarter, share, and store information quickly and representing a 39 percent increase. The Ara- intuitively. This tool will also figure promi- bic Microfinance Gateway also went live in nently in the redesign of cgap.org, which September 2005. CGAP worked with Cairo- houses all of our publications and industry based Sanabel Network and trained them in tools. all aspects of content generation and dis- semination via the Web site. 20 | CGAP Annual Report 2006 NEW PUBLICATIONS Book Access for All: Building Inclusive Financial Systems Focus Notes No. 36 Community-Managed Loan Funds: Which Ones Work? No. 35 Aid Effectiveness in Microfinance: Evaluating Microcredit Projects of the World Bank and the United Nations Development Programme No. 34 Graduating the Poorest into Microfinance: Linking Safety Nets and Financial Services No. 33 Competition and Microcredit Interest Rates No. 32 Using Technology to Build Inclusive Financial Systems No. 31 Foreign Exchange Rate Risk in Microfinance: What Is It and How Can It Be Managed? No. 30 The Market for Foreign Investment in Microfinance: Opportunities and Challenges No. 29 AML/CFT Regulation: Implications for Financial Services Providers That Serve Low-Income People Occasional Papers No. 11 Managing Risks and Designing Products for Agricultural Microfinance: Features of an Emerging Model Donor Briefs No. 25 Working with Savings and Credit Cooperatives Briefs Supporting Community-Managed Loan Funds AML/CFT Regulations: Balancing Security with Access Mobile Phones for Microfinance Using Technology to Build Inclusive Financial Systems Portfolio No. 4 Better Aid? No. 3 Protecting Microfinance Borrowers CGAP Annual Report 2006 | 21 CGAP Agricultural Microfinance: Case Studies No. 5 Small Farmers in Mozambique Access Credit and Markets by Forming Associations with Assistance from CLUSA No. 4 Equity Building Society of Kenya Reaches Rural Markets No. 3 Caja Los Andes (Bolivia) Diversifies into Rural Lending No. 2 Bai Tushum Financial Foundation, Kyrgyzstan No. 1 Confianza in Peru Overcomes Adversity by Diversifying Loan Portfolio Reports Diagnostic Reports on the Legal and Regulatory Environment for Microfinance—Algeria Country-Level Savings Assessment Report—Uganda Diagnostic Reports on the Legal and Regulatory Environment for Microfinance— West Bank & Gaza Sri Lanka Country-Level Effectiveness and Accountability Review Country-Level Savings Assessment Report—Bosnia Review of UNDP Microfinance Portfolio CGAP 2005 Annual Report Country-Level Savings Assessment Report—Mexico Madagascar Country-Level Effectiveness and Accountability Review Nicaragua Country-Level Effectiveness and Accountability Review 22 | CGAP Annual Report 2006 CGAP MEMBER DONORS 2006 MULTILATERAL MEMBER DONORS Inter-American Development Bank (IDB) Micro, Small and Medium Enterprise Division African Development Bank (AfDB) Representative: Mr. Alvaro Ramirez Temporary Relocation Agency Representative: Mr. Dieter Wittkowski Representative: Mr. Mohamed Alin 1300 New York Ave., NW Operations Policies and Review Department Washington, DC 20577 Representative: Mr. Philibert Afrika United States of America 1002 Tunis Belvédère www.iadb.org BP 323 Tunis International Fund for Agricultural TUNISIA Development (IFAD) www.afdb.org Technical Advisory Division—Rural Finance Representative: Mr. Henri Dommel Asian Development Bank (AsDB) Representative: Mr. Francesco Rispoli Rural Finance Department Representative: Ms. Jaime Anderson Representative: Mr. Nimal Fernando Via del Serafico, 107 6 ADB Avenue 00142 Rome P.O. Box 789 Italy Mandaluyong City www.ifad.org Philippines www.adb.org/phco/default.asp International Finance Corporation (IFC) Global Financial Markets Operations European Commission (EC) Representative: Ms. Mamta Shah EuropeAid SME Finance Representative: Mr. David Domes Representative: Mr. Luc Vaillancourt Representative: Mr. Amadou Traore 2121 Pennsylvania Avenue, NW Rue de la Loi 41 Room F9P-228 B-1040 Brussels Washington, DC 20433 Belgium United States www.europa.eu.int Tel.: (202) 473-8813 www.ifc.org European Bank for Reconstruction and Development (EBRD) International Labour Office (ILO) Representative: Ms. Chikako Kuno Social Finance Program Representative: Mr. Mike Taylor Representative: Mr. Bernd Balkenhol One Exchange Square Representative: Mr. Craig Churchill London, EC2A 2JN 4, route des Morillons United Kingdom CH 1211 Geneva 22 www.ebrd.org Switzerland www.ilo.org European Investment Bank (EIB) Representative: Mr. Cyrille Arnould United Nations Development Programme Representative: Mr. Edvardas Bumsteinas (UNDP) 100 Boulevard Konrad Adenauer Special Unit for Microfinance L-2950 Luxembourg Representative: Mr. Richard Weingarten Tel. : (352) 43 79 66 64 One United Nations Plaza Fax: (352) 43 79 66 98 Representative: Mr. John Tucker http://www.eib.org/ Room UH-8th Floor New York, NY 10017 United States of America www.undp.org CGAP Annual Report 2006 | 23 The World Bank Group Finland Representative: Mr. Cesare Calari Ministry of Foreign Affairs Representative: Mr. Carlos Cuevas Representative: Mr. Marko Katila 1818 H Street, NW P.O. Box 176 (Katajanokanlaituri 3) Room F 11-K 188 00161 Helsinki Washington, DC 20433 Finland United States of America http://formin.finland.fi/english www.worldbank.org France BILATERAL MEMBER DONORS Agence Française de Développement (AFD) Representative: Ms. Martha Stein-Sochas Australia 5, rue Roland Barthes Australian Agency for International 75598 Paris Cedex 12 Development (AusAID) France Representative: Ms. Nadira Mailewa www.afd.fr GPO Box 887 Canberra ACT 2601 Ministry of Foreign Affairs Australia Direction générale de la coopération www.ausaid.gov.au Internationale et du développement Representative: Mr. David Quien Belgium 20, rue Monsieur 75700 PARIS 07 SP Directorate General for Development France Cooperation www.france.diplomatic.fr/mae Representative: Mr. Charles Tollenaere Rue de Bréderode 6 Germany 1000 Brussels Belgium Kreditanstalt fur Wiederaufbau (KfW) http://europa.eu.int/comm/dgs/development Financial Sector Competency Center Representative: Mr. Martin Hagen Canada Palmengartenstr. 5-9 60325 Frankfurt am Main Canadian International Development Agency Germany (CIDA) www.kfw.de Representative: Mr. Jonathan Rothschild Representative: Ms. Stéphanie Émond Federal Ministry for Economic Cooperation 200 Promenade du Portage and Development (BMZ) Hull, Québec Representative: Ms. Ulrike Haupt Canada K1A OG4 Dept. 410 www.acdi-cida.gc.ca Friedrich-Ebert-Allee 40 53113 Bonn Denmark Germany Royal Danish Ministry of Foreign Affairs www.bmz.de Representative: Mr. Morten Elkjaer Representative: Ms. Birthe E. Larsen Die Deutsche Gesellschaft für Technische 2 Asiatisk Plads Zusammenarbeit (GTZ, Society for DK-1441 Copenhagen K Technical Cooperation) DENMARK Financial Systems Development www.um.dk Representative: Ms. Gabriela Braun Postfach 5180 Dag Hammersjolk Weg 1-5 65726 Eschborn Germany www.gtz.de 24 | CGAP Annual Report 2006 Italy Luxembourg Ministry of Foreign Affairs Ministry of Finance Directorate General for Development Multilateral Development Financing Cooperation (DGCS) Representative: Mr. Arsène Jacoby Representative: Ms. Giuseppa Rocchi 3, rue de la Congrégation Representative: Ms. Marie-Anne Medori 2931 Luxembourg Pizza della Farnesina - 1 Luxembourg 00194 Rome www.etat.lu/FI Italy www.esteri.it Ministry of Foreign Affairs Direction de la Coopération au Développement Japan Representative: Mr. Thierry Lippert Japan Bank for International Cooperation 6, rue de la Congrégation (JBIC) 2931 Luxembourg Environment Analysis Department Luxembourg Representative: Ms. Sonoko Takahashi www.mae.lu 4-1 Otemachi 1-chome The Netherlands Chiyoda-ku Tokyo 100-8144 Ministry of Foreign Affairs Japan Representative: Mr. Johan de Waard www.jbic.go.jp Bezuidenboutseweg 67 P.O. Box 20061 Ministry of Foreign Affairs The Hague 2500 EB Economic Cooperation Bureau Netherlands Representative: Mr. Tomoyuki Nishiura www.minbuza.nl 2-1-1 Kasumigaseki Chiyoda-ku Norway Tokyo 100-8919 Norwegian Agency for Development Japan Cooperation (NORAD) www.mofa.go.jp Representative: Mr. Parvez Kapoor Ruselokkveien 26 Ministry of Finance P.B. 8034 Dep. International Bureau 0030 Oslo Representative: Mr. Satoshi Tsuchimoto Norway 3-1-1 Kasumigaseki www.odin.dep.no/ud/engelsk Chiyoda-ku Tokyo 100-8940 Norwegian Ministry of Foreign Affairs Japan Representative: Mr. Harald Tollan www.mof.go.jp Representative: Mr. Berit Fladby 7, juni plassen/ Victoria Terrasse The World Bank P.O. Box 8114 DEP Office of the Executive Director for Japan 0032 Oslo Representative: Ms. Rie Kishino Norway 1818 H Street, NW www.odin.dep.no/ud/engelsk MC 12-315 Washington, DC 20433 Spain www.worldbank.org Agencia Espanola de Cooperacion Internacional (AECI) Representative: Mr. Manuel Cadarso Galarraga Avenida Reyes Catolicos, 4 28040 Madrid Spain CGAP Annual Report 2006 | 25 Sweden FOUNDATION MEMBER DONORS Swedish International Development Argidius Foundation Cooperation Agency (Sida) Representative: Ms. Bintou Ka Niang Financial Sector Development Argidius Foundation Representative: Mr. Ola Sahlén c/o Mador AG Sveavagen 20 Grafenauweg 10 S-105 25 Stockholm, Postfach 348 Sweden 6301 Zug www.sida.se Switzerland Switzerland Tel.: 011-41-41-729-4400 Fax: 011-41-41-729-4499 Swiss Agency for Development Representative: Mr. Koenraad Verhagen and Cooperation Co-operative Economy and Microcredit Financial Sector Operations Eikenlaan 34 Representative: Mr. Hansruedi Pfeiffer 1213 SJ Hilversum Freiburgstrasse 130CH-3003 Berne The Netherlands Switzerland Tel.: (31 35) 623-28 18 www.sdc.admin.ch Fax: (31 35) 628 42 68 United Kingdom Michael and Susan Dell Foundation Department for International Development Representative: Ms. Caitlin Baron (DFID) P.O. Box 163867 Financial Sector Team, Policy Division Austin, TX 78716 Representative: Mr. Douglas Pearce Tel.: (512) 347-1744 94 Victoria Street www.msdf.org London SW1E 5JL United Kingdom Bill and Melinda Gates Foundation Tel: 44 207 023 0477 Representative: Mr. Rajiv Shah Fax: 44 207 023 0797 P.O. Box 23350 http://www.dfid.gov.uk/ Seattle, WA 98102 Tel.: (206) 709-3681 United States Fax: (206) 399-1368 Representative: Ms. Priya Jaisinghani United States Agency for International Tel.: (206) 709-3393 Development (USAID) Representative: Ms. Kate McKee The Ford Foundation 1300 Pennsylvania Ave., NW Representative: Mr. Frank DeGiovanni Room 2.11 320 East 43rd Street Mail Stop: 20523-211 New York, NY 10017 Washington, DC 20523 United States Tel: (202) 712-5578 www.fordfound.org Fax: (202) 216-3228 http://www.usaid.gov/ 26 | CGAP Annual Report 2006 EXECUTIVE COMMITTEE MEMBERS Mr. Carlos Cuevas (The World Bank) Ms. Gabriela Braun (GTZ) The World Bank Denmark IFC EBRD Finland Ms. Martha Stein-Sochas (AfD) Germany Belgium Italy European Commission Norway France Sweden Luxembourg Switzerland Netherlands United Kingdom Mr. Fazle Hasan Abed (BRAC) Global Mr. Frank DeGiovanni, Chair (The Ford Foundation) Mr. Brian Branch (WOCCU) IFAD Global ILO UNDP/UNCDF Mr. Carlos Labarthe (Compartamos) Argidius Foundation Global Ford Foundation Ms. Marilou van Golstein Brouwers Mr. Nimal Fernando (AsDB) (Triodos Bank) AfDB Global AsDB Australia Ms. Elizabeth Littlefield (CEO CGAP) Canada Ex officio IDB Japan United States The CGAP Executive Committee (EXCOM) Effective April 6, 2005 CG Group EXCOM Representative(s) Term/renewable Europe 1 Gabriela Braun, GTZ November 2004/November 2006 Europe 2 Martha Stein-Sochas, AfD April 2005/November 2007 UN Agencies/Foundations Frank DeGiovanni, Ford Foundation April 2005/November 2007 America and Pacific Nimal Fernando, AsDB World Bank/IFC Carlos Cuevas April 2005/November 2006 Practitioners Brian Branch, WOCCU April 2005/November 2006 Marilou van Golstein Brouwers, Triodos Bank April 2005/November 2006 Fazle Abed, BRAC April 2005/November 2006 Carlos Labarthe, Financiera Compartamos April 2005/November 2006 CGAP Annual Report 2006 | 27 FULL CONTACT INFORMATION Mr. Nimal Fernando Lead Rural Finance Specialist Mr. Fazle Hasan Abed Asian Development Bank Founder & Executive Director 6 ADB Avenue BRAC P.O. Box 789 356 Mohakhali 1099 Manila Dhaka 1212 PHILIPPINES Bangladesh Tel: 632 632 444 Tel: 880 2 988 1265 / 880 2 882 4180 Fax: 632 636-2198 Fax: 880 2 883-542 Email: nfernando@adb.org Email: fhabed@bracbd.net Mr. Carlos Labarthe Mr. Brian Branch Director General Vice President Financiera Compartamos World Council of Credit Unions Insurgentes Sur # 553 Piso 1 Oficinas 5710 Mineral Point Road Col. Escandon PO Box 2982 México D.F. CP 11800 Madison WI 53705 Tel: (5255)5276-7251 / (5255) 5276-7250 United States Fax: (5255) 5276-7299 Tel: 608-231-8519 Email: clabarthe@compartamos.com Fax: 608-238-8020 Email: BBranch@woccu.org Ms. Martha Stein-Sochas Chef de Division Ms. Gabriela Braun Ingénierie Financière Head of Financial System Development Agence Française de Développement (AFD) Society for Technical Cooperation (GTZ) 5 rue Roland Barthes Postfach 5180 75598 Paris Cedex 12 Dag Hammersjolk Weg 1-5 FRANCE 65726 Eschborn Tel.: 33-1-53-44 36-85 GERMANY Fax: 33-1-53-44-37-33 Tel.: 49 61 96 791 223 Email: stein-sochasm@afd.fr Fax: 49 61 96 79 65 57 Email: Gabriela.braun@gtz.de Ms. Marilou van Golstein Brouwers Senior Fund Manager Mr. Carlos Cuevas Triodos Bank Principal Financial Specialist P.O. Box 55 The World Bank Utrechtseweg 60 1818 H Street NW 3700 AB Zeist Room J 10-077 Netherlands Washington DC 20433 Tel: 31 30 693 6530 United States Fax: 31 30 693 6566 Tel: 202 458 0145 Email: marilou@triodos.nl Fax: 202 477-2978 E-mail: Ccuevas@worldbank.org Ms. Elizabeth Littlefield ex-officio Director and CEO Mr. Frank DeGiovanni CGAP Director of Economic Development c/o World Bank The Ford Foundation 1818 H Street NW 320 East 43rd Street P3-300 New York NY 10017 Washington DC 20433 United States Tel: 202-473-2939 Tel: 212-573-5000 or 212-573-4904 Fax: 202-522-3744 Fax: 212-351-3656 Email: elittlefield@worldbank.org Email: f.degiovanni@fordfound.org 28 | CGAP Annual Report 2006 INVESTMENT COMMITTEE Michael Klein, Chair, Vice President, Finance and Private Sector Development, The World Bank Elizabeth Adu, Vice-Chair as of June 2005, Deputy General Counsel, Legal Department of Operations, The World Bank Simon Bell, Sector Manager, Finance & Private Sector Development Sector Unit, The World Bank Deepak Bhattasali, Lead Economist, Poverty Reduction & Economic Management Sector Department, The World Bank Gerard Byam, Director, Operational Quality & Knowledge Services, The World Bank Carlos Cuevas, Lead Financial Economist, Financial Sector Operations & Policy, The World Bank Mamta Shah, Associate Director, Global Financial Markets Operations, International Finance Corporation Lynne Sherburne-Benz, Country Program Coordinator, SE Asia Headquarters Unit, The World Bank Antony Thompson, Sector Manager, Africa Financial Sector, The World Bank Gilles Veuillot, (alternate), Counsel, Legal Department Africa, The World Bank CGAP Annual Report 2006 | 29 STAFF BIOGRAPHIES Elizabeth Littlefield, Director and CEO. Little- ton, D.C.; and worked as Washington correspon- field is a director of the World Bank and the chief dent for the London-based magazine Middle East executive officer of CGAP. Previously she was International. Badawi has a degree in English the managing director of JP Morgan’s Emerging from the University of Tennessee. He speaks Markets Capital Markets in London. As such, she English and Arabic. was responsible for all bond offerings, structured financing and credit ratings for emerging Europe, Carmencita B. Clay, Budget Officer. Carmencita Middle East, Africa and Central Asia. She and Clay joined CGAP in 1995. She handles all budg- her team won and executed more than 80 per- et issues, administers CGAP’s trust funds, and cent of all bond issues in these regions in the works with member donors on commitments to 1990s. She has also held positions as vice presi- CGAP. Before joining CGAP, Clay worked at the dent and head debt trader for Africa, Eastern U.S. Agency for International Development/ Europe, and Asia and as a director in JP Mor- Philippines, the Asian Development Bank, and gan’s Paris office in corporate finance. Earlier, various departments in the World Bank. Clay has Littlefield spent a year and a half living in West a Bachelor’s degree in Commerce and Account- and Central Africa starting up and advising sev- ing from the Philippines College of Commerce. eral microfinance institutions. She has served on many boards, including the boards of Women’s Tamara Cook, Microfinance Analyst. Tamara World Banking and Profund. She has founded Cook joined CGAP in 1996. She is based in the several not-for-profit organizations, including an Paris office and works on CGAP’s Aid Effective- organization that linked European food banks ness Initiative and on Retail Advisory Services. and homeless shelters in Paris and the Emerging She has conducted institutional appraisals, sup- Market Charity in London. A U.S. and U.K. citi- ported bids for AIFH, monitored grants, worked zen, Littlefield is a graduate of Brown University with networks, written various publications, and in Rhode Island and also studied at the École was seconded to Equity Bank in Kenya for a Nationale de Sciences Politiques in Paris. year. Cook studied International Development and Business at George Washington University. Julia Abakaeva, Microfinance Specialist. Julia She speaks English and is proficient in French Abakaeva joined CGAP’s Retail Advisory Service and rudimentary Swahili. program in 2005. Before joining CGAP she was a consultant at Internationale Project Consult for Ann Courtmanche, Senior Program Assistant. nine years. During this time she worked as a Ann Courtmanche is senior program assistant for bank advisor with the EBRD Russia Small Busi- CGAP’s policy advisory initiative. She has an ness Fund providing advisory assistance to vari- Master’s degree in Agricultural Economics from ous commercial banks in Russia and NIS coun- Rutgers University and a Bachelor’s degree in tries; an operations manager at MicroCredit Economics and French Literature from Hobart & Romania; head of lending operations at ProCre- William Smith Colleges. Before joining CGAP in dit Bank Romania; and branch manager of Pro- 2006, Courtmanche was a international market Credit Bank in Ukraine. She has a Master’s analyst for U.S. Wheat Associates and a research degree in Finance and Management from Clark assistant tracking the global spread of agricultur- University. She speaks English and Russian. al biotechnology for Rutgers University. Samer Badawi, Communications Officer. Samer Tiphaine Crenn, Microfinance Analyst. Tiphaine Badawi manages production of Portfolio, CGAP’s Crenn joined CGAP in 1998. She is currently a newsletter, and develops strategic communica- member of the Africa Team and concentrates on tions products. Before joining CGAP, Badawi was policy and communications in Sub-Saharan communications director for the largest donor- Africa. In years prior, she helped to coordinate funded governance project in Iraq; he estab- the Middle East/North Africa launch, the capaci- lished the communications department for a ty-building program for microfinance managers, major development consulting firm in Washing- and the regulation and supervision resource cen- 30 | CGAP Annual Report 2006 ter as well as other dissemination efforts. Before CGAP, Gardner worked as an office manager in joining CGAP, Crenn worked as a translator and the film production and publishing industries in bilingual lexicographer. She has a Master’s Australia and has also worked in the media sec- degree in Translation from the University of tor in the United Kingdom and for Texaco, Inc., Ottawa, Canada. She speaks English and French in Bermuda. and is proficient in Spanish. Jasmina Glisovic-Mezieres, Microfinance Ana- Rani Deshpande, Private Sector Development Spe- lyst. Jasmina Glisovic-Mezieres joined CGAP in cialist. Rani Deshpande joined CGAP in 2003 and 2004. She works with the savings team and the currently manages CGAP’s Savings Initiative. aid effectiveness team in CGAP’s Paris office. Her professional experience includes consulting Before joining CGAP, she worked as a credit assignments at the United Nations, training and manager for the Danish Refugee Council (Ser- small business consulting in West Africa, and bia) and for the Micro Development Fund, and business management in India and the United she spent 2 years as a loan officer for poor States. Deshpande has a Master’s degree in Busi- refugees from Bosnia, Croatia, and Kosovo. She ness Administration and a Master’s degree in has a Masters degree in Marketing and Business International Affairs from Columbia University. Administration. She speaks English and Serbo- She speaks English, French, and Marathi and is Croatian and is proficient in French. proficient in Spanish and Hindi. Natasa Goronja, Microfinance Analyst. Natasa Eric Duflos, Microfinance Specialist. Eric Duflos Goronja joined CGAP in 2001. She has been joined CGAP in 2003. He is based in CGAP’s Paris managing CGAP’s capacity building program for office, where he focuses on improving aid effec- microfinance funders over the last three years. tiveness for microfinance. He currently manages Recently, she has been also working to develop a the Country-Level Effectiveness and Account- comprehensive plan for CGAP’s training and edu- ability Reviews and spends some of his time on cation strategy. Before joining CGAP, Goronja policy work, focusing on the role of government worked in the microfinance sector in Bosnia as a in microfinance. Before joining CGAP, Duflos loan officer, microfinance trainer, consultant, and spent 7 years in Laos, where he worked with the policy adviser. Goronja speaks English, Serbo- United Nations and the World Bank to help set Croatian, Italian, French, and some Russian. up microfinance institutions and policy frame- works. He has field experience in Cambodia, Idawati Harsongko, Team Assistant. Idawati Indonesia, Bangladesh, Vietnam, Haiti, Madagas- Harsongko joined CGAP in 2003 as a member of car, Chad, France, Sri Lanka and the United the budget and administration team. She helps States on small and medium enterprises and process consultant contracts and payments and microfinance development. He has a Master’s does other administrative tasks. Previously, Har- degree in Management from the Lyon EM and a songko worked as a team assistant for the World Master’s degree in Economics and International Bank Indonesia Country Office Human Develop- Relations from John Hopkins. He speaks English ment Unit. She received a 3-year diploma in and French and knows German and Lao. accounting from the Institute of Economics (STIE Perbanas) in Jakarta. Evelyne Fraigneau, Director’s Assistant. Evelyne Fraigneau joined CGAP in 1999. She provides Syed Hashemi, Senior Microfinance Specialist. assistance to the director and CEO, handles Syed Hashemi joined CGAP in 1999. He concen- information requests, and plans meetings for trates on identifying pro-poor innovations and CGAP and its stakeholders. Before joining CGAP, disseminating best practice lessons related to Fraigneau worked in the World Bank’s Africa poverty outreach and impact. He developed the Region and at the French mission to the United CGAP poverty audit for financial institutions and Nations office in Geneva, Switzerland. She stud- has worked extensively on assessing poverty lev- ied translation at St. Bénigne Institute in Dijon, els of microfinance institution (MFI) clients. He France, and Georgetown University. is currently involved in developing social per- formance indicators for tracking changes in the Zoë Gardner, Program Assistant. Zoë Gardner social and economic levels of MFI clients. Before joined CGAP in 2003. She supports CGAP staff in joining CGAP, Hashemi directed the Program for its Paris office, including support on the effec- Research on Poverty Alleviation at Grameen tiveness of funding, savings, and the Middle Trust and taught Development Studies at East/North Africa initiative. Before joining Jahangirnagar University in Bangladesh, where CGAP Annual Report 2006 | 31 he conducted research on microfinance, non- Jennifer Isern, Lead Microfinance Specialist. Jen- governmental organizations, and gender subor- nifer Isern joined CGAP in 1996, and she brings dination in rural Bangladesh. Hashemi has a 18 years of experience in development, includ- Ph.D. in Economics from the University of Cali- ing more than five years living in West Africa fornia at Riverside. He speaks English, Bangla, managing institutions. She leads CGAP’s Africa and conversational Hindi. team working on aid effectiveness, policy issues, financial infrastructure, transparency, capacity Brigit Helms, Lead Microfinance Specialist. Brigit building, and retain innovations. In addition, Helms joined CGAP in 1996 and is based in Isern coordinates CGAP’s work in China and the CGAP’s Paris office. She founded CGAP’s Donor money transfers initiative. She has led several Team to improve aid effectiveness and recently initiatives and authored publications on apprais- launched the Savings Initiative. She has worked ing MFIs and networks, money transfers, anti- on microfinance capacity-building training for money laundering, bank entry in microfinance, donor staff and practitioners at the Microfinance African microfinance, informal finance, and the Training Program in Boulder, Colorado. Helms role of international networks. Before joining has written numerous CGAP publications, CGAP, Isern was the regional technical adviser including Access for All: Building Inclusive for economic development in West and Central Financial Systems. Before joining CGAP, Helms Africa with Care International and worked for worked for the Latin America and the Caribbean the U.S. Agency for International Development Division of the International Fund for Agricul- in Costa Rica and Senegal, the United Nations tural Development and for the U.S. Department Development Program in New York, AT&T’s of Commerce as a desk officer for Central Amer- international division, and other private and ica. She has worked in more than 35 countries in public sector consulting. She has a Master’s Latin America, the Caribbean, Africa, and Asia. degree from Princeton University and is a Char- She has a Ph.D. in Development and Agricultur- tered Financial Analyst. Isern has worked in al Economics from Stanford University. She more than 45 countries worldwide. She speaks speaks English and Spanish and is proficient in English and French and is proficient in Spanish. French and Italian. Gautam Ivatury, Microfinance Specialist. Gautam Martin Holtmann, Lead Financial Specialist. Ivatury joined CGAP in 2003. He manages the Martin Holtmann joined CGAP in 2003 to co- Microfinance Technology Program and works on manage its cooperation with commercial banks several CGAP initiatives in India. Before joining and large retail organizations. Before joining CGAP, Ivatury was vice president of Finance and CGAP, he was managing director of Interna- Administration at SKS Microfinance in India, an tionale Projekt Consult, where he provided advi- investment analyst at International Finance Cor- sory assistance to banks and credit-granting non- poration, and co-founded a startup education governmental organizations in Eastern Europe technology venture. Ivatury also worked as an and the newly independent states, Africa, and investment banker at Donaldson, Lufkin & Jen- Latin America. In addition, he was the Moscow- rette (now Credit Suisse First Boston). He has a based program manager of the European Bank Master’s degree in International Affairs from for Reconstruction and Development’s Russia Johns Hopkins University. He speaks English and Small Business Fund and helped in the design is proficient in French and Hindi. and creation of several greenfield banks in the region. He has authored several publications on Antonique Koning, Program Coordinator. She microfinance, especially in the area of staff coordinates the European Union/African, incentives. Holtmann has taught Finance and Caribbean, Pacific States Microfinance Frame- Personnel Economics at Trier University and has work Program—a capacity-building program for been a faculty member of the Boulder Microfi- microfinance actors in sub-Saharan Africa, the nance Training Progam since 1996. He has a Caribbean, and the Pacific. Koning is seconded to Master’s degree in Economics from Trier Univer- the European Commission and is based in Brus- sity and a Master’s degree in Public Administra- sels. Before joining CGAP, she worked with the tion from Harvard University. He is currently World Savings Banks Institute. Previously, she completing his doctorate in Finance at the managed a microcredit program in El Salvador Goethe Universität in Frankfurt a. Main, Ger- for 3 years. She began her career as a research many. Holtmann speaks English, German, Span- fellow of the Overseas Development Institute ish, and Russian and is proficient in French. and European Centre for Development Policy Management. Koning has a Master’s degree in 32 | CGAP Annual Report 2006 International Trade Management and Policy the development of transparency in the microfi- from the University of Birmingham. She speaks nance industry, provides technical support to English, Spanish, French, and Dutch. microfinance institutions on financial perform- ance and reporting quality and standards, and Alexia Latortue, Senior Microfinance Specialist. has been involved in financial management Alexia Latortue joined CGAP in 2002 and is training. Before joining CGAP, Mwangi worked based in CGAP’s Paris office. She leads CGAP’s as an external auditor and management consult- work on improving the effectiveness of funding ant with PricewaterhouseCoopers, Kenya, on for microfinance, and provides strategic and tech- small business finance and microfinance proj- nical services to development agencies. In 2002, ects. She has a Master’s degree in Administration she managed the Microfinance Donor Peer from the Australian Catholic University and is a Reviews. Latortue has written extensively on aid Certified Public Accountant. effectiveness in microfinance. Before joining CGAP, Latortue was a development specialist Anna Nunan, Publications Manager. Anna with Development Alternatives, Inc., where she Nunan joined CGAP’s Communications Team in helped strengthen financial institutions’ opera- 2005. She has more than 20 years of experience tions, systems and staffing and worked on finan- in all aspects of nonprofit publishing. She has a cial market infrastructure issues such as audit Bachelor’s degree in Journalism from the Uni- capacity and transparency in Haiti. She has a versity of Maryland and a Master’s degree in Master’s degree in Development Economics from Business Administration from Johns Hopkins the Fletcher School of Law and Diplomacy at University. Tufts University. She speaks English, French, Cre- ole, and German and has rudimentary Spanish. Xavier Reille, Lead Microfinance Specialist. Xavier Reille joined CGAP in 1999. He leads the CGAP Timothy Lyman, Senior Policy Adviser. Timothy transparency team and chairs the board of direc- Lyman joined CGAP full-time in 2005 following tor of the Microfinance Information eXchange. many years advising CGAP and various CGAP He is also the director of CGAP MENA initiative. members on legal and regulatory policy issues in Before joining CGAP, he was the regional micro- a consulting capacity. He is a co-author of finance adviser for Southeast Asia with Catholic CGAP’s Guiding Principles on Regulation and Super- Relief Services (CRS), where he set up an invest- vision of Microfinance. He has worked in commu- ment company for rural banks in Indonesia and nity development for over 20 years in the Unit- developed a rating methodology. Before joining ed States and internationally, during much of CRS, he was operations director at Société d’In- this time as a partner of the law firm of Day, vestissement et de Développement International, Berry & Howard and president of its affiliated where he helped create Profund and helped philanthropic foundation, the Day, Berry & develop Centenary Bank (a commercial bank in Howard Foundation, and, from 1994 to 2005, as Uganda). Reille has a Master’s degree in Interna- principal outside legal counsel to Save the Chil- tional Finance from the University of Paris. He dren/U.S. He holds a Bachelor’s degree from speaks French, Spanish, English, and Bahasa Harvard University and a law degree from New Indonesia. York University School of Law. He speaks Eng- lish, French, Spanish, Bosnian/Croatian/Serbian, Richard Rosenberg, Senior Adviser. Richard and conversational German and Russian. Rosenberg joined CGAP in 1995. He has written or contributed to a dozen CGAP publications He Sarah Manapol-Brown, Budget Assistant. Sarah is a core faculty member of the Microfinance Manapol-Brown joined CGAP in 2000. She Training Program at The Boulder Institute. Before works on the administration of CGAP’s trust joining CGAP, Rosenberg was deputy director of funds, donor and grant agreements, consultant the U.S. Agency for International Development’s contracts, and general office needs. Before join- (USAID) Center for Economic Growth and spent ing CGAP, Manapol-Brown worked for the 9 years in Latin America, managing investment World Bank’s Private Sector Department and promotion, privatization, pension reform, and Aon Risk Services/HTB Insurance Agency. development finance. Before joining USAID, Rosenberg practiced antitrust and contract law Patricia Mwangi, Microfinance Specialist. Patricia with Boodell Sears in Chicago, Illinois, and pri- Mwangi joined CGAP in 1999. She works on vate investment management. He has a Doctor of deepening CGAP’s outreach in Africa, manages Law degree from Harvard University. Rosenberg the Financial Transparency Award, and works speaks English and Spanish. with initiatives designed to promote and support CGAP Annual Report 2006 | 33 Ousa Sananikone, Senior Private Sector Develop- Development Alternatives, Inc., an international ment Specialist. Ousa Sananikone joined CGAP in economic development consulting firm. Singh 2000. She is responsible for external reporting has a Master’s degree in Public Administration and reviewing CGAP publications and key docu- and International Relations from Syracuse Uni- ments. Before joining CGAP, Sananikone versity. She speaks English and Hindi. worked in the Small and Medium Enterprise Development Department of the World Bank. Jeanette Thomas, Communications Manager. She has a Master’s degree in International Affairs Jeanette Thomas joined CGAP in 2004 as the from Georgetown University. She speaks Lao, manager of the Communications Team. Before Thai, French, and English. joining CGAP, Thomas was news editor in the BBC’s Washington Bureau. She started her 10- Neeran Saraf, Web Project Manager. Neeran Saraf year tenure at BBC in London, producing radio joined CGAP in 2005. She is currently working documentaries and Start the Week with Melvyn on CGAP’s technology platform and Web strate- Bragg, BBC Radio 4’s longest running discussion gy. Before joining CGAP, Saraf worked with sev- program. She also co-produced On Giants’ eral large consulting companies on local and Shoulders, a 12-part science series. In international projects and co-founded several 2003–2004, she took a sabbatical from BBC to information technology companies, including produce a series of films for the World Bank on SARAF Solutions, Inc. She has a Bachelor’s development projects in the Middle East. She has degree in Computer Science from Imperial Col- a Master’s degree and a Ph.D. in English Litera- lege of London University and a Master’s degree ture from Oxford University. She speaks English in Computer Science from George Mason Uni- and some French and Spanish. versity. Saraf speaks English, Arabic, and French. Tonia Wright, Operations Manager. Tonia Wright Hannah Siedek, Microfinance Analyst, CGAP. manages CGAP’s day-to-day business and Hannah Siedek joined CGAP in 2003 on the aid administrative functions, including budget and effectiveness team in Paris helping private and finance, human resource management, and public microfinance funding organizations use administrative services. She coordinates CGAP’s their resources more effectively. In this capacity, Associate Microfinance Analyst Program and she has conducted research on the different fund- Internship initiatives. Before joining CGAP, ing sources for microfinance, managed an online Wright worked in local government training, resource to help donor staff capacity, and focused technical assistance, and capacity-building, both on increasing funders’ transparency and account- domestically and internationally. As a contractor, ability by developing disclosure guidelines and Wright managed a regional local government performance standards for microfinance invest- support program for the U.S. Agency for Interna- ment funds. Siedek has also done significant tional Development/Pretoria, supporting local work with the donor community in Nicaragua to authorities in Zimbabwe, Zambia, South Africa, improve their effectiveness. Since early 2006, and Swaziland. Wright has a Master’s degree in Siedek has been based in Washington, D.C., Public Administration from the University of where she provides support to CGAP’s Technolo- Delaware and a Bachelor’s degree in Political Sci- gy Program. Before starting at CGAP, Siedek com- ence from North Carolina A&T State University. pleted internships with NM Rothschild & Sons in London and the Momentum in Madrid. She has The following are on one-year assignments: a Master’s degree from ESCP-EAP, Paris, and has Malika Anand, Associate Microfinance Analyst. studied in England, Spain, and France. Siedek Malika Anand joined CGAP in 2006. Before join- speaks German, English, French, and Spanish. ing CGAP she spent a year in the Dominican Republic on a Fulbright Fellowship. During her Ira Singh, Microfinance Gateway Manager. Ira time there she worked with Banco ADOPEM Singh joined CGAP in 2004. She manages the conducting a market research and impact assess- Microfinance Gateway, the leading industry por- ment study. She has a Bachelor’s degree from the tal on microfinance, as well as its French and University of Chicago in Public Policy Studies, Arabic affiliate sites. Before joining CGAP, she with a minor in South Asian Languages and Civ- managed projects, conducted applied research, ilizations. She speaks English, Spanish, and rudi- and provided technical assistance and marketing mentary Hindi. support to the finance and banking practice of 34 | CGAP Annual Report 2006 Chetana Bisarya, Associate Microfinance Analyst. Saharan Africa. Before joining CGAP she worked Chetana Bisarya joined CGAP in 2005. She works in Zimbabwe conducting trainings on election with the Communications Team on the Microfi- monitoring and business skills for microentre- nance Gateway, the leading industry portal on preneurs. She has a Master’s degree in Interna- microfinance. Before joining CGAP, she worked tional Business Relations and Development Eco- for the World Bank Institute in Private Sector nomics from the Fletcher School, Tufts Development. Her prior experiences include University. She speaks English and is proficient working with think tanks and NGOs in the Unit- in French. ed States and India, and she worked as consultant for Accenture. She holds a Bachelor’s degree Caterina Meloni, Associate Microfinance Analyst. from Duke University and a Master’s degree in Caterina Meloni joined CGAP in 2005. She International Affairs from George Washington works with the Transparency Team and focuses University. She speaks English, German, French, on the various initiatives to promote transparen- and is proficient in Spanish and Tamil. cy in the microfinance industry. Before joining CGAP, she worked at the World Bank’s Opera- Aude de Montesquiou, Associate Microfinance tions Policy and Country Services department. Analyst. Aude de Montesquiou has worked on Meloni has 2 years of field experience in aid effectiveness in microfinance at CGAP since Mozambique, where she worked for Save the August 2005. She has a Master’s degree in devel- Children/United States microfinance program opment studies from the School of Political Sci- and for the Department of International Devel- ence in Paris and has studied literature, law and opment as part of a multidonor direct budget history at the University of la Sorbonne. Before support group. She has a Master’s degree in joining CGAP, she worked on microfinance International Relations and Economics from impact assessments at PlaNet Finance in Paris. Johns Hopkins. She speaks English, Portuguese, She has completed internships with microfi- Spanish, Italian, and intermediate French. nance institutions in Lebanon and Togo. Mark Pickens, Associate Microfinance Analyst. John Gutin, Associate Microfinance Analyst. John Mark Pickens joined CGAP in 2005. He works Gutin joined CGAP in 2005. He works on a vari- with CGAP’s Technology and Savings Initiatives ety of policy-related issues, including microfi- and the Retail Advisory Service. His professional nance interest rate regulations and AML/CFT . experience includes consultancies with Bank of Before joining CGAP, Gutin worked at Develop- Africa in Madagascar, Amret Microfinance in ment Alternatives, Inc., in the Banking and Cambodia, Oxfam America, Pact, and USAID in Financial Services group. Gutin has an Master’s Bosnia. Before joining CGAP he worked at degree in International Relations from the Lon- Development Alternatives, Inc. He has a Master’s don School of Economics. He speaks English and degree in Microfinance from Columbia Universi- is proficient in French. ty. He speaks English and is proficient in French and Malagasy. Farai Jena, Associate Microfinance Analyst. Farai Jena joined CGAP in 2006. She provides Lauren Reese, Associate Microfinance Analyst. research support to the director and CEO as well Lauren Reese works with CGAP’s technology as to different teams, including the Africa team program, including coordination of the Technol- and Savings Initiative. Before joining CGAP, she ogy Fund, research, and program activities. interned as a corporate finance analyst with Before joining CGAP, Reese worked for a devel- Deutsche Bank in London and as a trading assis- opment consultancy where she wrote a toolkit of tant with Public Financial Management in Penn- best practices for microenterprise development sylvania. Jena has a Bachelor’s degree in Mathe- programs, and at TPC, a microfinance institution matics and Economics from Mount Holyoke in Cambodia. Reese holds a Master’s degree in College. She speaks English and Shona. International Development and Economics from Johns Hopkins University, SAIS and a Bachelor’s Lauren Johnson, Associate Microfinance Analyst. degree in Political Economy from the University Lauren Johnson joined CGAP in 2005. She of California, Berkeley. works on pro-poor innovation, poverty out- reach, and a range of programs specific to Sub- CGAP Annual Report 2006 | 35 CGAP FINANCIAL STATEMENTS Year ending June 30, 2006 C GAP is a trust-funded consortium of • Grant Commitments. In 2006, CGAP 33 funders with a mandate of continued to focus on initiatives where improving access to financial servic- there was great demand, where it had a es by the world’s poor. It is housed in the comparative advantage and where it World Bank which, on behalf of other would make a significant impact to build- member donors, has legal, financial, and ing inclusive financial systems. In 2006, administrative oversight of CGAP. CGAP’s CGAP committed $8.3 million in new grants, projects, and most of its initiatives grants and initiatives and $1.5 million for span more than one fiscal year. CGAP fol- its communication and dissemination lows the World Bank’s fiscal year, which activities. CGAP continued to generate ends on June 30. donor cofinancing for its initiatives. On These financial statements include a average, for every $1 invested by CGAP, Statement of Revenues and Expenses, a $3.5 were leveraged through donor co- Balance Sheet, a Statement of Cash Flows, financing. and accompanying notes. They are unaudit- • New commitments include a bolstering ed. Internal audits are performed by the of the CGAP Technology Program, for World Bank. which $2 million were committed with the aim of achieving greater access to for- KEY HIGHLIGHTS mal financial services through informa- • Donor Contributions. Donor contribu- tion and communications technologies, tions and pledges for 2006 ($14.1 million) especially among poorer, underserved declined slightly compared to 2005 ($15.6 populations; $1.5 million for the second million). The World Bank significantly phase of The MIX; $1 million to microfi- reduced its contribution to $500,000 nance initiatives in the MENA region; based on a 2005 disposition of interest $0.6 million for the second phase of the income which accrued to CGAP’s parent Money Transfers Project and to fund the trust fund. This interest income in the global Financing Facility for Remittances; amount of $11 million was allocated to and $0.6 million (with $220,000 co- CGAP in lieu of new contributions financing from Ford Foundation) towards through 2008. Additionally, Belgium and a project that aims to increase the depth Italy did not contribute during 2006. New of microfinance outreach and provide donors (Dell Foundation, European services to ever-poorer clients (Graduat- Investment Bank, and Gates Foundation) ing the Poorest into Microfinance). have made pledges for 2006, and all other • Operating Expenses. Operating expenses donors are either continuing or have went up to $8.6 million (from $6 million increased their contributions to CGAP. in 2005). This was planned and budgeted, as CGAP’s office in Washington had to 36 | CGAP Annual Report 2006 move to a new location and the hub in These (unaudited) financial state- the MENA region became fully opera- ments are prepared on a historical cost tional. In addition, CGAP’s communica- convention, and are denominated in tion and dissemination strategy began to United States dollars. scale up considerably. In the Statement of Revenues and Expenses, the 2005 com- 2. Contributions from Donors— mitment for the Microfinance Gateway Core & Designated significantly increased the communica- Donor contributions (including pledges tion activities line item in comparison to that have not yet been received but are communications commitments for 2006. being processed by the donor), interest Additionally, the administration fee income and foreign exchange gains com- levied by the World Bank on all donor prise CGAP’s revenues. Donor contribu- contributions experienced a sharp tions can be unrestricted (core), or in increase due to changes in the policy on exceptional cases limited to a specific the amount and timing of the fee. The fee purpose (designated). Amounts of donor increased from 2% to 5%. In addition, it contributions to CGAP’s core funds can is now assessed upon receipt of the con- also be found in the table labeled CGAP tribution rather than when the contribu- Member Donor Commitments, Fiscal tion is disbursed. Years 2005–2007. The Statement of Revenues and • Financial Position. CGAP’s financial Expenses shows donor contributions position is good. At the end of fiscal year allocated for fiscal years 2005 and 2006. 2006, operating reserves stood at $6.9 The Statement of Cash Flows/Inflows, on million, down by $1.3 million from fiscal the other hand, shows all donor contri- year 2005. These reserves are meant to butions received during the fiscal year smooth the planning and execution of regardless of the fiscal year to which they ongoing CGAP activities and cushion the relate. effect of delays in donor contributions. 3. Interest Income and Foreign 1. Basis of Accounting Exchange Gains CGAP changed its financial reporting to Interest Income is the interest received accrual based in 2003. This gives the read- during the fiscal year on cash balances er a fuller understanding of CGAP’s finan- held. Foreign exchange gains are the dif- cial position by showing funds approved ference between the estimated U.S. dol- for commitments separately from funds lar equivalent of donor contributions available for ongoing operations and appearing in previous years’ financial future commitments. Resources are statements and the actual U.S. dollar expensed when committed to projects. value of the contribution when it was Revenue from donor pledges is recog- finally converted to U.S. dollars. Interest nized when written notification of a income in 2006 was $1.2 million. While donor’s intent to process the grant is there was foreign exchange gain in 2005, received. In most cases, pledges are ful- there was a loss in 2006. filled during the fiscal year they were made, but often they are received in the following year(s). CGAP Annual Report 2006 | 37 Financial Statements, continued 4. Grants and Initiatives • Communications Activities include commitments for publishing, printing, This expense category relates to CGAP’s translating, editing, Web site develop- work program via grants to microfinance ment and maintenance, publications institutions, networks, and initiatives and Web site managers, Microfinance focused on policy issues, financial and Gateway costs, etc. social transparency, accountability, tech- • CG and Excom Meetings include trav- nology development, transfers/remit- el, facilities, food services, and other tances, and other multi-component proj- expenses connected with CGAP’s ects managed by CGAP staff. Project Annual Meeting and Executive Com- related commitments for consultants and mittee meetings. travel come out of this category. • Foreign exchange loss is the difference Approved commitments that are not between the estimated U.S. dollar fully disbursed when they are closed are equivalent of donor contributions returned to the original trust fund where appearing in previous years’ financial the commitments were derived. Com- statements and the actual U.S. dollar mitment amounts are therefore reported value of the contribution when it was net of returns. finally converted to U.S. dollars; also 5. Operating Expenses included in this line item is one can- celled pledge in 2006. Operating expenses are comprised of: • Administration fees are levied by the • Staff Salaries and Benefits include World Bank for costs related to trust salaries and benefits of direct-hire fund administration (currently at 5% CGAP staff of contribution). • Office and Occupancy Costs include space, equipment, communications, 6. Operating Reserves supplies, and other overhead expenses. Reserves are funds available for ongoing • Service Providers include costs that operations and future commitments. are not related to grants and initiatives Given that CGAP is not a self-standing, (meeting facilitators, presentors, train- permanent entity, an operating reserve is ers of CGAP staff, etc.). maintained to cushion the effects of • Travel includes airfare, subsistence, delays in donor contributions and to and hotel costs incurred by staff and allow an orderly wind-down of CGAP consultants that are not related to spe- activities if and when member donors cific grants and initiatives (i.e. all decide to discontinue CGAP’s operations stakeholder meetings, public presenta- in its present form. tions, conferences, external training travel, recruitment travel, etc.). 38 | CGAP Annual Report 2006 Financial Statements, continued 7. Bank Balances 9. Liabilities Bank balances on hand represent CGAP’s The undisbursed portion of Grants, Ini- available cash balances. In fiscal year tiatives, and Communications Activities 2006, this amount was $10.2 million, a represents approved funding where dis- decrease of $6.3 million from 2005. This bursements are in progress and are to be is expected, as the 2005 bank balance made or continued beyond the current included an unexpected transfer of fiscal year. accrued interest income from the World Bank’s contributions to CGAP, which 10. Contributions Received in Advance rendered it unusually high. FY06 FY05 Bank balances representing approved World Bank 6,375,000 11,000,000 commitments that are in the process of Australia 359,250 338,300 being disbursed and hence not available United Kingdom 444,625 474,938 for new commitments were $23.6 million TOTAL 7,178,875 11,813,238 in fiscal year 2006. In April 2005, the World Bank’s legal 8. Donor Contributions Receivable department determined that interest income that had accumulated on the FY06 FY05 CGAP trust fund over the last ten years Dell Foundation 100,000 European 1,227,600 1,710,104 belonged to CGAP and transferred these Commission funds to CGAP. As a result of this unex- Finland 344,578 pected inflow, the World Bank reduced Ford Foundation 200,000 its future allocation to CGAP to $500,000 Gates Foundation 157,500 per annum, recognizing that the interest Germany 331,250 income can fund the balance of its IFAD 600,000 695,000 Norway 471,143 pledge. In 2006, CGAP allocated $4.6 Spain 361,830 366,690 million of this interest income towards Sweden 391,430 391,430 ongoing operations. The amount remain- TOTAL 3,840,753 3,507,802 ing from the interest income is $6.37 mil- lion and will be allocated for the next two fiscal years. CGAP Annual Report 2006 | 39 Financial Statements, continued FINANCIAL STATEMENTS Fiscal Years Ending June 30, 2006 and June 30, 2005 Actual Actual July 2005– July 2004– Notes June 2006 June 2005 STATEMENT OF REVENUES AND EXPENSES Revenues Contributions from Donors—Core & Designated 2 14,129,420 15,615,446 Interest Income and foreign exchange gains 3 1,151,567 777,663 Total Revenues (A) 15,280,987 16,393,109 Expenses Grants/Initiatives Committed 4 8,335,341 10,753,878 Staff Salaries and Benefits 5 3,381,740 3,009,276 Office and Occupancy Costs 5 1,698,207 1,144,949 Service Providers 5 164,040 113,640 Travel, Representation, Others 5 290,892 248,687 Communication Activities 5 1,507,904 2,275,655 CG and ExCom Meetings 5 177,409 153,906 Foreign exchange losses and cancelled pledge 5 631,644 – Administration Fee 5 409,733 82,553 Total Expenses (B) 16,596,909 17,782,544 Excess of Revenues over Expenses for the year (A)–(B) (1,315,922) (1,389,435) Operating Reserves at beginning of the fiscal year 8,216,701 9,606,136 Operating Reserves at the end of the fiscal year 6 6,900,779 8,216,701 BALANCE SHEET Assets Bank Balances on hand 7 10,238,901 16,522,137 Bank Balances relating to Undisbursed Grants/ Initiatives and Communications Activities 7 23,631,509 25,660,778 Donor Contributions Receivable 8 3,840,753 3,507,802 Total Assets 37,711,163 45,690,717 Liabilities Bank Balances relating to Undisbursed Grants/ Initiatives and Communications Activities 9 23,631,509 25,660,778 Contributions Received in Advance 10 7,178,875 11,813,238 Total Liabilities 30,810,384 37,474,016 Operating Reserves/(Net Assets) 6 6,900,779 8,216,701 Total Liabilities and Net Assets 37,711,163 45,690,717 40 | CGAP Annual Report 2006 Financial Statements, continued FINANCIAL STATEMENTS, continued Fiscal Years Ending June 30, 2006 and June 30, 2005 Actual Actual July 2005– July 2004– Notes June 2006 June 2005 Inflows Donor Contributions received 10 8,638,116 21,735,299 Interest Income and Foreign Exchange Gains 1,151,567 777,663 Total Inflows 9,789,683 22,512,962 Outflows Cash spent against previous commitments 8,058,109 5,934,168 Grant Disbursements 5,114,862 4,982,925 Disbursements related to initiatives 2,943,247 951,243 Cash spent against current year commitments 1,469,440 1,818,707 Grant Disbursements 661,053 351,604 Disbursements related to initiatives 808,387 1,467,103 Operating expenses 8,574,639 6,027,400 Staff Salaries and Benefits 3,381,740 3,009,276 Office and Occupancy Costs 1,698,207 1,144,949 Service Providers 164,040 113,640 CGAP Staff Travel/Representation and Others 290,892 248,687 Communication Activities 1,820,975 1,274,388 CG and ExCom Meetings 177,409 153,906 Foreign exchange losses and cancelled pledge 631,644 – Administration Fee 409,733 82,553 Net increase/(decrease) in undisbursed grants/ initiatives, and communications activities (2,029,269) 449,228 Total Outflows 16,072,919 14,229,503 NET INCREASE (DECREASE) IN CASH (6,283,236) 8,283,459 Bank balances on hand at beginning of the fiscal year 16,522,137 8,238,678 Bank balances on hand at end of the fiscal year 10,238,901 16,522,137 CGAP Annual Report 2006 | 41 CGAP ONGOING GRANTS AND INITIATIVES As of June 30, 2006 Commitments Retail Advisory Services 3,250,000 Microfinance Management Institute 2,687,500 CAPAF Phase II 2,344,238 Policy Initiative 2,310,402 Microfinance Technology Program I 1,250,000 CGAP/Gates Technology Program 2,000,000 MENA Initiative 1,890,000 Rating Fund II 1,702,186 MIX Phase II 1,500,000 Microsave Africa III 1,500,000 Pro-Poor Innovation Challenge Phase II 1,000,000 BRI International Visitors Program 925,000 MISFA II 890,000 CIDR East Africa Initiative 836,000 Financial Transparency Awards II & III 745,000 WOCCU Supervisory Toolkits & TA 742,000 BCEAO Regional Regulation & Supervision 680,000 Money Transfers Phase II 622,800 Savings Initiative 600,000 Central Asia Microfinance Center 594,400 Graduating Poorest into Microfinance 570,000 Country-Level Effectiveness and Accountability Reviews 568,000 Rating Fund III 530,000 China Capacity Building 440,000 Regulation & Supervision Resource Center, Phase III 372,900 Aid Effectiveness (formerly Donor Peer Reviews) 359,609 New Course Development 300,000 Microcredit Interest Rate Sensitivity Study 244,930 Social Performance Indicators 240,000 Microsave Latin America 180,000 Processor and Trader Credit 175,000 Asia Money Transfer Research 140,038 Better Aid HLM 2006 100,000 Regulation for Alternative Distribution 90,000 Poverty & Technology III 90,000 Microfinance Franchise Program 90,000 India Capacity Building 90,000 Staff Incentives Scheme Action Plan 84,000 Course Updates and Global TOTs 80,850 42 | CGAP Annual Report 2006 Commitments Donor Good Practice Guidelines 73,000 In-Depth Donor Agency Support 72,560 South Asia Regional Research 68,947 Microinsurance Working Group 65,000 Funding Flows Research 32,936 33,127,296 CGAP Ongoing Communications Activities Microfinance Gateway II 1,735,655 Microfinance Gateway I 1,592,000 International Translation Project 922,500 Communications Activities 787,400 CGAP Websites 500,810 National and Regional Networks Program 335,904 5,874,269 Note: Commitment amounts include co-funding from other donors that is managed by CGAP. CGAP Annual Report 2006 | 43 CGAP MEMBER DONOR CONTRIBUTIONS AND PLEDGES Fiscal Years 2005–2007 (in US $)1 FY2005 FY2006 FY2007 Core World Bank 5,525,000 5,125,000 4,725,000 2 Argidius Foundation 100,000 100,000 100,000 Asian Dev. Bank Australia 338,300 697,550 359,250 Belgium 388,725 Canada 412,609 428,119 428,119 Dell Foundation 100,000 100,000 Denmark 520,063 476,984 476,984 European Commission 1,245,215 600,000 600,000 European Investment Bank 242,040 242,040 Finland 317,512 334,256 334,256 Ford Foundation 200,000 200,000 200,000 France 198,795 183,750 192,000 Gates Foundation 157,500 157,500 Germany 331,250 331,250 331,250 IFAD IFC 300,000 300,000 300,000 Italy 403,050 Japan 300,000 300,000 Luxembourg 440,241 421,395 421,395 Netherlands 400,000 400,000 400,000 Norway 471,143 471,143 471,143 Spain 361,830 361,830 361,830 Sweden 389,358 391,430 391,430 Switzerland 400,000 399,975 400,000 United Kingdom 474,938 474,938 444,625 United States Core 13,518,029 12,497,160 11,436,822 Designated 1,465,773 3 1,632,261 4 8,064,437 5 TOTAL 14,983,802 14,129,420 19,501,259 1 Contributions not yet received are shaded and italicized. 2 Of the originally budgeted World Bank contribution for FY2006, $500,000 is the new annual contribution and $4,625,000 is taken out of the $11 million interest income (see note 11 to Financial Statements). 3 EC, IFAD and Argidius Foundation 4 European Commission, IFAD and Sweden 5 European Commission, France, Gates Foundation, IFAD, Sweden 44 | CGAP Annual Report 2006 CGAP COLLABORATION WITH MICROFINANCE PARTNERS IN FISCAL YEAR 2006 In addition to its 33 members (please see page 23 for a complete list), CGAP works with a wide variety of partners on all of its initiatives. The following is only a partial list and includes institutions with whom we collaborated on such activities as joint research, MFI ratings and evaluations, training, consensus-building, and technical assistance. A - Invest, Kazakstan Bandhan, India Consumer Credit Cooperative Aadarsha Welfare Society, India BANTRA (Banco del Trabajo), Peru “The First Far Eastern”, Russia ACCION International Benefit, Bosnia & Herzegovina Cooperative Rural Bank of Bulacan, Philippines ACODEP, Nicaragua BGMFSCO, Ethiopia COPME, Peru ADA, Luxembourg Bina Swadaya Gema PKM, Indonesia Council of Microfinance Equity Funds Ad Jesum Development Foundation, Blue Orchard Philippines Credit Cambodia Banque Marocaine du Commerce Extérieur, ADFinance, Senegal Morocco Crédit du Sahel, Cameroon AFD Botswana Building Society Crédit Mutuel, Sénégal Africap BRAC, Bangladesh Credit Rural, Guinea Agency for Finance, Kosovo BURO Tangail, Bangladesh Crédit-Epargne-Formation (C.E.-FOR), Madagascar AgroCapital, Bolivia Cairo-Amman Bank, Jordan Credo Foundation, Georgia AgroInvest – World Vision, Caja Nor, Peru Serbia & Montenegro Crystal Fund, Georgia Capital Aid Fund for Employment AISFD-CI, Ivory Coast of the Poor, Vietnam Corporate Social Responsibility Small and Micro Enterprises, Philippines Alterfin, Belgium Capitec Bank, South Africa Dahabshiil Transfer Services, UK/Somalia Alternativa, Peru CARD, Philippines DAI Finnet, Haiti AMFOT (Microfinance Association CARE, Benin in Tajikistan) DEMOS, Croatia Catholic Relief Services AMUCCS, Mexico Deutsche Bank CECAM, Madagascar Angkor Mikroheranhvatho Kampuchea DIS, Morocco CEFORMAD, DR Congo (AMK), Cambodia Dutch Microfinance Platform Centenary Rural Development Bank ANIP-MF, Niger Limited, Uganda Eco Bank, Ghana APEMIF, DR Congo Centre de coopération internationale EcoFuturo, Bolivia APIFM, Madagascar en recherche agronomique pour Ecumenial Church Foundation, Philippines APIM, Burkina Faso le développement, France EDPYME, Peru APIM, Togo CIDR, France EKI, Bosnia & Herzegovina APROMI, Mauritania Centre National d’Etudes Agronomiques Enda Inter-Arabe, Tunisia des régions Chaudes, France APROS, Mexico Equity Bank, Kenya Centurion Bank, India Aquadev, Belgium Etimos, Italy CERISE, France ASC Union, Albania, FAO Cetzam, Zambia ASHI (Ahon Sa Hirap). Philippines Faulu, Uganda CFBM, Mali Asian Credit Fund, Kazakhstan FIELCO (Financiera El Comercio), Paraguay Christian Rural Aid Network (CRAN-Ghana) Asociación Cooperativa de Ahorro y Crédito FINADEV, Benin Vincentina de R.L., El Salvador CIDA Finamerica, Columbia Association MicFin, France Citibank Group Finance for Development LLC, Azerbaijan Azeri Star Microfinance, Azerbaijan CMAC (Caja Municipal de Ahorro y Crédito Financial El Comercio, Paraguay de Sullana S.A.), Peru Baba’s Foundation Inc, Philippines Financiera Nicaraguense de Desarrollo S.A., CMF (Commercial Microfinance Limited), Bai Tushum Financial Fund, Kyrgystan Nicaragua Uganda Banco De La Gente, Venezuela FINCA Compartamos, Mexico Banco do Noreste, Brazil Finmark Trust Concern, Ireland Banco Los Andes, Bolivia FinRURAL Bolivia Consortium ALAFIA, Benin Banco ProCredit, Ecuador Fondation Charles Léopold Mayer pour Constanta Foundation, Georgia Banco Solidario, Ecuador le progrès de l’Homme), France Consulting Plus, Madagascar Bancolombia, Columbia Fondation pour le Développement local et le Partenariat, Morocco CGAP Annual Report 2006 | 45 Fondeco, Bolivia MasterCard International Save the Children FONDEP, Morocco MCO Sinergija plus, Bosnia & Herzegovina SCFI, Philippines Fondo de Desarrollo Local, Nicaragua MCRIL SDC (Swiss Agency for Development Fondo Financiero Privado FIE Sociedad MEC FADEC NJAMBUR, Senegal and Cooperation) Anonima (FIE FFP), Bolivia MFD, Senegal SEEP Network, Washington DC Fonkoze, Haiti MFRC SEF, Armenia Ford Foundation MiBanco, Peru Shorebank Formateurs Independants, Senegal Microfin Holdings Limited, Trinidad SIMBAG SEDP, Philippines FORO-LAC (The Latin American and Microfinance Academy, Cameroon SINERGIJA, Bosnia & Herzegovina Caribbean Forum on Rural Finance) SKDRDP, India Microfinance Centre for CEE and the NIS, Forus Bank, Russia Poland SKS, India Freedom From Hunger Microfinance Council of the Philippines Small and Micro Enterprise Programme, Frontiers, LLC MicroFinance Network Kenya Fundación Alternativa, Equador Microfinanza, Italy Small Business Development Foundation, Fundación CODESPA, Spain Georgia Microrate Fundación Paraguaya de Cooperación Small Enterprise Foundation, South Africa Microsoft Research y Desarrollo, Paraguay Sociedad Cooperativa de Ahorro y Crédito Microvest USA Ganesha Microfinance Foundation, AMC, El Salvador MIKRO ALDI Goarzde, Indonesia SOCREMO, Mozambique Bosnia & Herzegovina Génesis Empresarial, Guatemala Solidarité Internationale pour MIKROFIN Banja Luka, Georgian Rural Development Fund, Georgia le Développement et l’Investissement), Bosnia & Herzegovina France Globe Telecom Mikrofond, Bulgaria St. Elizabeth Community Development Grameen Foundation Minostere PME, EF, Microfinance, Senegal Program (SECDEP), Philippines GSM Association Mision Alianza de Noruega, Equador SUNLINK, Kenya Hivos, Netherlands Movimiento Manuela Ramos, Peru Sunrise, Bosnia & Herzegovina ICICI Bank MTA (Microfinance Association Swabalamban Bikas Bank Ltd., Nepal IETS Brazil in Uzbekistan) Taytay Sa Kauswagan Inc., Philippines IMCEC, Senegal Mutuelle d’épargne et de crédit - Association Thaneakea Phum, Cambodia Imp-Act Consortium femmes entreprise rural - Nord, Senegal The First MicroFinance Bank Ltd., Pakistan InfoDev National Bank of Kyrgyzstan Trapetrol, Bolivia Initiative Développement, Benin Negros Women’s Finance Trust, Philippines TRIAS, Belgium Initiative Développement, Ghana Netherlands Development Finance Company (FMO) Trickle Up Program Institut de Recherches et d’Applications New Page Microfinance, Ghana Tuba Rai Metin, Philippines des Méthodes de développement, France Norwegian Microcredit LLC, Azerbaijan UFINA, Cameroon HOPE, DR Congo ODEF, Honduras Uganda Women’s Finance Trust Institution Marocaine d’appui à la micro-entreprise, Morocco Oikocredit UMEC de Sédhiou, Senegal Integra, Slovakia Omidyar Network Uni Banco, Brazil Interchurch Organization for Development Open Society Institute Union des Clubs d’Epargne et Crédit Cooperation, The Netherlands (UCEC), Chad Opportunity International Intercooperation, Switzerland United Nations Development Programme PACEF, Cameroon International Micro-Loan Fund, Tajikistan United Nations Foundation PAED, Guinea Bissau IRAM Unitus Equity Fund PAIDEK, DR Congo Jordan Micro Credit Company USAID Partneri Shqiptar ne Mikrokredi (PSNM), JV MFO Microinvest LLC, Moldova Albania Utshani Fund, South Africa KASHF Foundation, Pakistan PHARMA Credit, Congo Viator Microcredit, Azerbaijan Kosovo Enterprise Program Pilarh, Honduras Visa International Kraban Support Foundation, Ghana Planet Finance, Belgium Vision Fund, Cambodia K-Rep Development Agency, Kenya Planet Rating Vital Finance, Benin Kwanwoma Rural Bank Limited, Ghana PRASAC, Cambodia Vivekananda Sevakendra O Sishu Uddyan, India La Caixa Comunitária de Crédito e Poupança PRIDE, Africa (CCCP), Mozambique Vodafone Foundation PRISMA (Asociación Benefica Prisma), Peru League for Education and Development Vola Mahasoa, Madagascar PRIZMA, Bosnia & Herzegovina (LEAD), India WAGES, Togo ProMujer Leimos Care, Ghana WIZZIT REDCAMIF, Guatemala Lift Above Poverty, Nigeria Women’s World Banking Réseau des Mutuelles d’Epargne LOKmicro, Bosnia & Herzegovina et de Crédits, Senegal World Economic Forum Louvain Developpment, Belgium ResponsAbility Global Microfinance Fund World Vision Maata-N-Tudu, Ghana Sanabel XacBank, Mongolia 46 | CGAP Annual Report 2006 Photo Credits Cover (left to right): Srinivasa Rao Allamsetty, Franck Boutonnet, Rohanna Mertens, Santha John, Rohanna Mertens page 1: Srinivasa Rao Allamsetty page 2 (top to bottom): Ron Londen, Ron Londen, Srinivasa Rao Allamsetty, Nicolas Pena page 5: Ron Londen page 7: Rohanna Mertens page 9: Srinivasa Rao Allamsetty page 10: Anders Gunnartz page 13: Erin Gamble page 17: Hans Dellien page 19: Rohanna Mertens page 29: Rohanna Mertens 1818 H Street NW Washington, DC 20433 USA Telephone: 1.202.473.6479 Fax: 1.202.522.3744