Public Private Partnership in Microfinance Building Sustainable - PowerPoint PPT Presentation

Public Private Partnership in Microfinance Building Sustainable Microfinance in Europe” EMN’s 9 th annual conference Ianuarie 2011 November 9 th 2012, Bucharest- Romania

WS’s objective • To introduce the tools designed to assist in building successful Private Public Partnerships (PPPs) in microfinance. • To provide information, tips and answers to questions PPPs from best practice case- studies. • The workshop is designed to spark and rekindle MFIs and stakeholders of the sector’s interest in Partnerships in microfinance .

I. What a partnership is and What it is not; Partnership is defined as: “a relationship where two or more parties , having compatible goals , form an agreement to do something together ”.

Similarities of partnerships - share authority; - have joint investment of resources; - result in mutual benefits; and - share risk, responsibility and accountability.

Formal vs Informal Partnerships Partnerships should be flexible , they often require some official or formal agreement. • what the partnership is about; • who is doing what; and • what outcomes are expected

Specifics of PPPartnerships in MF Is Financial inclusion one of the key elements of PPPs in microfinance? • The social responsibility of financial institutions is of particular importance immediate societal impact, promote job creation as a result of a suitable credit policy. • National, regional and local public authorities joined forces with the MF sector to reveal joint lines of action allowing for alignments and replications within the European Union .

The PPPartnerships in MF promote social economy-related activities or facilitate a socially responsible system for managing public funding or funding of a public nature

II. What are the conditions that support partnerships; • having common interests or concerns • understanding your partnership environment, • understanding what a partnership involves , and •being open to doing things differently .

III. Partnership process and how to apply it; Stage 1: Initial Development 1. Vision – creating a common picture for the future. 2. Goals – identifying desired outcomes for the partnership. 3. Understanding the Situation - assessing the current situation. 4. Commitment - confirming the desire to work together 5. Implications - considering the impact of the partnership

III. Partnership process and how to apply it; Stage 2: Making It Happen 1. Action Plans - identifying the specific steps that are required to reach the goals of the partnership. 2. Resources - identifying the resources that are required and how they will be obtained. 3. Roles and Responsibilities - identifying who will do what. 4. Capacity Building - building upon the partnership’s strengths and addressing areas of weakness.

III. Partnership process and how to apply it; Stage 3: Accountability and Future Directions 1. Evaluation - determining the success of partnership activities. 2. Future Directions - maintaining momentum and determining what needs to happen next. 3. Revision, Renewal and Closure - identifying how to adjust and move on or end the partnership.

Factors of success – PPP in MF 1. Defining well the action supported by the partnership: meet a need 2. Defining the motivations underpinning the implementation of the partnership 3. Determining the expected outcome of each type of partners 4. Writing partnership agreements 5. Exchanging information on the completion of the MF action 6. Assessing the partnership

For more information JASMINE Help Desk http://www.european-microfinance.org European Microfinance Network http://www.european-microfinance.org/europe-microfinance_en.php Thank you! Maria Doiciu Eurom Consultancy & Studies Calea Plevnei 46-48, FPP Entrance, 2 nd fl. Bucharest, sector 1, Romania www.eurom-consultancy.ro E-mail: office@eurom-consultancy.ro