Market Study for IDB´s Islamic Microfinance Development Programme

2016-06-30 - 2016-10-31
Afghanistan

The scope of the work included: A comprehensive Islamic Microfinance Market Study, documenting: Overall Microfinance sector (legal, regulatory, market size, supply size, products, delivery systems); Key sector indicators; Contribution of MF and SMEs to main sectors of the economy. Recommendations for: Developing the enabling environment therefore strengthening the provision of Islamic microfinance. Selecting one of the following interventions: Convert an existing MFI into Islamic MFI or strengthen an existing MFI or establish a new Islamic MFI, indicating the banking and regulatory requirements and challenges for establishing the institution.
General research on the country economic structure, macroeconomic variables and their impact on the financial sector. Detailed enabling environment analysis, highlighting the role MF, the regulatory and legal evolution and the new set of policies regarding IF recently sanctioned by the Central Bank Detailed review of all the key stakeholders involved in the microfinance market (macro, meso level) Quantitative and qualitative research of demand side, including analysis of key national statistics and primary research with clients (structured interviews and focus groups). Supply side analysis, including interviews and analysis of the most relevant FSPs (12). Data collection supply side: KPI, outreach, products and services offer, penetration of Islamic services, staff capacity. Estimation of effective demand of microfinance and SME finance market in the Gambia. Recommendations on three levels Macro level: Support to improve the enabling environment for Islamic Microfinance Meso level: Capacity Building for the Islamic Microfinance sector. Micro level: Targeted MFI Institutional Strengthening Package, taking into account the analysis for each relevant provider.