Strategic Review & Transformation Assessment, and Strategic Business Planning for: FONDEP (Morocco)

2012-11-30 - 2013-04-30

FONDEP was founded in 1996 as a non-profit association focused on providing microfinance and other other services to micro-entrepreneurs in Morocco. Since starting operations, FONDEP has grown to become the 3rd largest MFI in the country, with operations spread throughout the country – particularly rural and peri-urban areas. It provides solidarity group and individual loans and has expanded to reach over 138,000 clients and a portfolio of $84.9 million (as of Sept 2012). FONDEP has an opportunity to become one of the first non-bank-backed MFIs in Morocco to transform. While it remains well-positioned to scale up outreach to the unbanked in Morocco, FONDEP faces a volatile post-crisis environment characterized by persistently elevated non-performing loan (NPL) rates, increasing competition and a changing market. To address these challenges and prepare for another phase of growth and its eventual transformation into a for-profit microfinance company, FONDEP seeks assistance to assess its operations, help it elaborate a new strategy and business plan and prepare it for transformation. The aim of this Project overall is to prepare FONDEP for its eventual transformation into a regulated, for-profit institution. Specifically, the Project will help the MFI to assess its operations, market and the context for transformation with an aim to develop a new strategy and business plan, as well as to conduct a diagnostic covering the key areas for capacity building necessary to both implement the new strategic plan and prepare the MFI for its eventual transformation.
I. Strategic Review and Transformation Assessment: Review of Legal/Regulatory/Government structures of Morocco Review of MF industry and assessment of MF market in Morocco Institutional Review of FONDEP Strategy Review of FONDEP Transformation Preparedness Diagnostic II. Strategic Business Plan Development: Recommendation of a new Business Strategy Development of a five-year business plan based on a multi-variant business planning model Transformation Scenario and development of Action Plan