chairman letter - sanabel · chairman letter dear sanabel members and friends, this issue of...

CHAIRMAN LETTER

Dear Sanabel Members and Friends,

This issue of Sanabel quarterly newsletter is different in terms of its content due to the fact that it is, this time, a semi-annual edition. It recounts events and updates that occurred in the network as well as members’ news throughout the third and fourth quarters of 2012.

This period was full of significant events and activities to the network on the administrative and technical levels, which by its turn led to the adjournment of the issuing of 2012 third quarter newsletter and the decision to merge it with the fourth quarter newsletter editions in a semi-annual one.

Sanabel recently witnessed many changes in its organizational structure namely; the resignation of a number of staff members in many departments in addition to the resignation of Ms. Ranya Abdel-Baki Executive Director, and Ms. Nancy Samy, Deputy Executive Director.

In spite of such unstable operating conditions, Sanabel has been able to manage its work and activities in accordance with the set work plan; hereinafter you will find a summary of some activities, while the details can be found below in the newsletter’s different sections.

Sanabel has organized a collective «Iftar» breakfast for its members in Egypt, Jordan, Morocco and Yemen in the Holy month of Ramadan, in cooperation with the Egyptian Microfinance Network (EMFN), Jordan Microfinance Network «Tanmeyah», Centre Mohammed VI de Soutien à la Microfinance Solidaire, and Yemen Microfinance Network (YMN), in order to strengthen and enhance members’ communication on one hand, and on the other hand to provide an opportunity for networking between the members.

In collaboration with SANAD Fund for (MSME), and GIZ, Sanabel organized a two-day workshop, on August 28th and 29th, discussing the status of the microfinance

legislation in the Arab countries. The workshop has brought together more than 70 participants from various MFIs and discussed legislative and regulatory issues in the region from the perspective of practitioners, in addition to working on developing strategies.

Last but not least, Sanabel successfully held its ninth annual conference in Khartoum, Sudan at Corinthia hotel from October 31st - November 2nd, under the auspices of Dr. Abdul Rahman Al- Khedhr, Khartoum Governor. More than 350 participants attended the conference including microfinance practitioners, government officials, investors, donors, and other stakeholders from the industry in the Arab region, in addition to 60 speakers from the Arab region as well as other countries around the world.

On the strategic level, the new Board of Directors - elected in November 2012 after the General Assembly members’ vote during Sanabel conference - are currently preparing for the network’s annual Board meeting, which will be held from January 25th to 27th , 2013 in order to discuss and adopt the network’s strategic plan for 2013 – 2015, which will reflect the direction of the network in the coming period in line with the members’ needs and the industry trends, as well as ensuring the continuity of providing appropriate and high quality services to its members and to the industry as a whole.

Finally, we promise to continue providing services up to our members’ expectations, and we welcome any suggestions for future activities.

Best wishes for a happy and prosperous year 2013.

Hassan FariedChairman

Sanabel Newsletter | July - December 2012

Newsletter | July - December 2012

2Sanabel Newsletter | July - December 2012

GOVERNANCE UPDATESSanabel successfully held its Annual General Assembly meeting on November 2nd, in Khartoum, Sudan following the closing ceremony of Sanabel’s 9th annual conference. The General Assembly meeting was attended by 34 members, of whom 32 institutions and individuals are full members in Sanabel.

The Board of Directors elections took place during the meeting and the new Board results were announced as follows:

1. Mr.HassanFaried,DakahleyaBusinessmenAssocia-tionforCommunityDevelopment,Egypt,Chairman

2. Mr. Mohammed Al Lai, Al Amal Bank,Yemen,ViceChairman

3. Mr.MotazAlTabaa,ABA,Egypt,Treasurer

4. Mr. Abbas Saedy, Al-Thiqa Organization for Micro-finance and Small Business Loans, Iraq, SecretaryGeneral

5. Mr.ZiadHalaby,Vitass.a.l,Lebanon,BoardMember

6. Ms. Nagwa Fadl, Aden Microfinance Foundation,BoardMember

7. Mr.AnwarJayousi,FATEN,Palestine,BoardMember

It is worth mentioning that Mr. Hassan Faried, Mr. Mohamed Al Lai, and Mr. Ziad Halaby were re-elected for a second term, while Mr. Abbas Saedy was elected to be the first representative of Iraqi microfinance industry in the network’s Board.

TRAINING & CAPACITY BUILDING UPDATESOver the third and fourth quarters of 2012, the Training& Capacity Building Department conducted the following training courses:

1. “Product Developmentfor MicrofinanceInstitutions” conducted for the second time in Lebanon on July 14th -18th, 2012, due to the high demand for this course. The course was delivered by Mr. Hussein Balshi and Mr. Motaz Al - Tabaa, and was attended by 22 participants from Iraq, Jordan, Lebanon, and Sudan.

This course aims to help participants to develop financial products in an orderly manner, set price and cost, pilot test, and roll out the product. The course included the following outline:

• Description of the product development process;

• Assessment of the institutional capacity for product development;

• Application of different techniques to market research designed meet client needs;

• Product prototype design, based on research findings and outcomes;

• Pricing and costing;

• And pilot testing.

2. “Client Protection Principles” conducted for the first time in Morocco, in cooperation with Centre Mohammed VI de Soutien à la Microfinance Solidaire. The Training was delivered by Ms. Nancy Samy, and attended by a number of participants from Morocco, Jordan, and Sudan.

The Course enables microfinance institutions and networks to implement client protection principles. Furthermore, it helps the participants to identify institutional weaknesses and strengths as well as set priorities for strengthening MFI practices in the field of client protection. Finally, preparing MFIs to identify and improve client protection practices.

The main objectives of the course are:

• To diagnose the MFI’s current status for applying client protection principles;

• To identify institutional weaknesses and strengths for applying client protection principles, and establish practice priorities in the area of client protection;

• And to develop a strategic plan for applying client protection principles.

It is worth mentioning that these Courses were supported by the Arab Gulf Program for Development (AGFUND).

3. “SocialPerformanceManagement(SPM)”conducted for the first time in Iraq, in cooperation with the Iraqi Microfinance Network, on October 1st - 4th, 2012, with the support of USAID Iraq and GIZ.

The training was delivered by Mr. Adil Sadoq and Mr. Ahmed Al-Saraifi, and was attended by 25 participants.


«SocialPerformanceManagement» refers to an ongoing process for collecting data about clients and introducing changes to MFI products and operations in order to make improvements and achieve MFI social goals.

The course aims to provide an orientation on SPM through:

• Translating MFI’s mission into social goals;

• Developing social objectives;

• Identifying the most important partners, locally and internationally, along with their needs of information about social performance;

• Creating tools to analyze the diverse sources of information in order to monitor and evaluate social performance;

• Discussing how to reconcile between operational systems and social objectives;

• and reconsidering how to use the relevant information to make management decisions.

4. “FinancialAnalysisandUsingSEEPFrameTools” co-organized by Sanabel and Grameen-Jameel, in Sudan, on November 3rd -7th, 2012, following Sanabel’s Ninth Annual Conference. The course was delivered by Mr. Al-Beltagy Fawzi and Mr. Sherif Shoman, and was attended by 15 participants from Sudan, Syria, Jordan, Yemen, Saudi Arabia, and Lebanon.

The main objective of this training is is acquiring the necessary knowledge for understanding the financial situation and sustainability in MFIs as well as using financial analysis to improve MFIs’ sustainability through:

• Identifying the components, purpose, relationships, and importance of the main financial statements;

• Studying the formats of income statements and balance sheets to easily separate the effect of donor funds;

• Analyzing financial statements to monito profitability, efficiency, and portfolio quality;

• Adjusting costs for inflation, subsidized cost of funds, and in-kind donations;

• Identifying critical factors for moving toward financial sustainability;

• And using the SEEP Frame Tool and analyze various reports generated by the tool.

Workshopon“StateofMicrofinanceRegulationsinArabCountries:MicrofinanceInstitutions’Perspec-tives”

On August 29th and 30th 2012, Sanabel, SANAD Fund for MSME, and GIZ programme ‘Promotion of the Microfinance Sector in the MENA Region’ organized a workshop on “State of Microfinance Regulations in Arab Countries”. The workshop focused on the regulations and how it might help strengthen the sector through growth opportunities in Microfinance products, improvement of consumer protection mechanisms, as well as enhancing the funding basis.

Microfinance institutions and regulators from across the MENA region and beyond came together in Cairo in order to discuss the current state of microfinance regulation and develop road maps for policy change.

On the first day, representatives from Uganda, Bosnia, Yemen, and Palestine delivered presentations on the development of the Microfinance sector on the legal and regulatory levels in their countries including achievements and challenges.

On the second day of the workshop, participants formed five different working groups, in order to develop road maps for policy change in Egypt, Iraq, Jordan, and Morocco as well as some general principles on the regional level.

The Regional group identified some key principles, which should be part of regional strategies as follows; 1) A vision for the MF sector should be developed along with a lobbying strategy to materialize this vision; 2) The lobbying strategy should make use of media, trainings, and academia for broader outreach; 3) The importance of using the resources of multi and bilateral donor institutions.

The Egyptian group identified the lack of adequate regulation of MFIs in the country as the major hindrance for professionalization and growth. The suggested solution involved a two tier-based regulatory framework. Additionally, a new law should be drafted, foreseeing the regulation and supervision of MFIs and their transformation from NGOs by EFSA and the Central Bank of Egypt and also allowing the transformation from MFIs to banks.


The Moroccan group identified the sector’s lacking capacity to follow the governance directive, inadequate legal support, and a general misperception about the sector’s mission as key issues. An ideal strategy would enable the sector to increase its product portfolio, foster institutional strengthening, link it to the international financial system, and improve the overall image of the sector. A lobbying strategy shall therefore target the parliament and media, with the FNAM (Fédération Nationale des Associations de Microcredit - Morocco) taking the lead.

As for the Jordanian group, they identified inadequate regulations as hindrance for further microfinance development in the country. Another problem is the lack of understanding of regulators about the sectoRestrictive regulations hold back the broadening of product portfolios. In order to improve the capacities of regulators and foster their openness for improvements in the sector, this group suggested organizing exposure visits. Goal should be to incite a steady and reliable development of microfinance regulation and supervision and to make it become part of the international financial system.

The Iraqi group envisioned a unified microfinance sector, offering comprehensive financial services and targeting SMEs while considering social outcomes. The regulatory framework should be adapted to this and allow deposit taking and promote increased links with the international financial system. The road map regards the Iraqi national microfinance network as key actor, with MFIs, local and regional networks, as well as donor institutions taking the lead. The main emphasis shall be put on knowledge exchange also.

SOCIAL PERFORMANCE MANAGEMENT (SPM) UPDATESSPMToolsWorkshop

Sanabel organized a workshop, from 16 – 18 July in Cairo, Egypt, to introduce some tools to help the 25 member MFIs involved in the SPM project to measure and implement SPM principles. The materials for this workshop were developed by Mr. Adil Sadoq, SPM consultant, and Ms. Nancy Samy, Sanabel’s Deputy Executive Director and SPM Project Manager. The workshop was delivered by Mr. Adil Sadoq as the lead consultant with support from Ms. Nancy Samy. The workshop was attended by 20 participants from Egypt, Lebanon, Palestine, Jordan, and Tunisia.

The tools that were presented during the workshopwere:

• The Client Protection’s 7 principles and the self-assessment tool

• Poverty Score Cards, and Progress out of Poverty index (PPI)

• Quality Assessment Tool (QAT)

• Introduction on Universal standards on Social Performance Management (USSPM)

EvaluationofSPMproject

On September 30th, 2012, Sanabel concluded the Social Performance Management (SPM) project, Phase II, funded by Oxfam Novib. The goal of SPM project - Phase II, was to “ensure that all interested MFIs have an appropriate guide, needed tools and technical assistance to be able to develop comprehensive social performance management systems”.

With the occasion of ending the second phase of the pro-ject a final evaluation was conducted by an independent consultant, during the month of September and early Oc-tober with the general purpose of determining the appro-priateness, effectiveness, efficiency, and sustainability of the project. The evaluation also looked at lessons learned to continuously improve performance and outcomes, lea-ding to conclusions and useful recommendations for fu-ture project management and implementation.

Evaluation’smainconclusions:

• The SPM project is important and needed however; it may not be the top priority area of action to the targeted MFIs. The major benefit reaped from the project is its demonstrative effect, as it has established a clear path and process for Sanabel to initiate a comprehensive new service for its clients in a “Business Line” mode.

• In general, the quality of the tools, materials, and technical assistance was adequate and sufficient.

• Based on the developments of the SPM I and II and the feedback of MFIs, the services extended by Sanabel within the SPM should be continued and expanded in the future.

TRANSPARENCY & RESEARCH UPDATESThe Mennonite Economic Development Associates (MEDA) and Sanabel are conducting a study on the current status of MFIs in Egypt with regards to the provision of youth financial services to Egyptians from (18-30 years) in terms of practices and goals’ achievement.

Thestudyaimsto:

• Determine the efficiency, effectiveness and appropria-teness of MFI input and practices for young people;


• Determine how MFI young clients are satisfied with the service provided;

• And to identify the obstacles to microcredit for young people.

Asfortheresearchtechniquesused:

• Electronic survey requesting quantitative data about MFIs;

• Interviews with a sample of MFI clients to collect descriptive information about customer satisfaction, as well as quantitative information about how clients use (invest) the loan;

• Focus group discussions to gather descriptive data about obstacles that impede the flow of microfinance to youth.

Sanabel has released four case studies on MFIs working in Islamic Micro and Small Medium Enterprise and applying good practices for Islamic MSMEs. The four case studies were commissioned by Agence Française de Développement(AFD) as an independent input into CGAP’s MSME Islamic Microfinance survey. The four case studies covered: The Arab Center for Agricultural Development (ACAD) in Palestine, Al Amal Microfinance Bank (AMB) in Yemen, Family Bank in Sudan, and WASIL FOUNDATION in Pakistan.

The Transparency and Research department has published the 2011 collected data form Arab MFIs on Shafafeya website (http://www.shafafeya.info). This data will also feed into the Arab benchmarking report, which will be published by the end of the year analyzing the Arab regions performance in FY 2011. The Arab benchmarking report will be published in cooperation with MIX Market.

Below is the quarterly performance data for the third and fourth quarters of 2012 with a comparative look on performance for the third and fourth quarters of 2011:

Country

ThirdQuarter2012 ThirdQuarter2011

MFI NumberofBorrowers

%ofFemale

Borrowers

GrossloanPortfolio

(USD)

%PortfolioatRisk>30days

NumberofBorrowers

%ofFemale

Borrowers

GrossloanPortfolio(USD)


Egypt

ABA 219,368 54% 58,290,283 0.61% 178,170 54% 48,709,611 1.23%

FMF 18,654 55% 5,016,351 6.63% - - - -

Al-Tadamun 37,890 100% 4,714,290 11.79% 53,897 100% 5,836,840 17.03%

DBACD 102,936 54% 25,481,791 0.22% 104,905 54% 25,049,741 0.43%

Lead Foundation 141,168 84% 21,505,001 8.65% 147,540 85% 19,075,690 17.60%

CEOSS 44,882 67% 8,466,345 0.90% 39,501 68% 7,180,280 2.20%

Iraq CHF-ACSI* 19,816 16% 45,265,018 0.14% 20,700 15% 43,113,391 0.20%

Jordan

FINCA 15,251 98% 7,647,130 0.61% 13,018 98% 6,184,574 0.43%

MEMCC* 18,120 65% 25,502,825 1.62% 13,778 64% 22,467,758 1.09%

MFW 76,248 97% 32,453,380 0.83% 59,784 97% 23,033,704 0.98%

NMB 32,704 91% 20,100,099 1.44% 30,425 92% 19,216,029 1.34%

Tamweelcom 62,326 95% 30,581,188 0.37% 51,050 96% 23,443,204 0.45%

Lebanon

Al Majmoua 33,613 47% 27,579,201 0.58% 26,908 43% 23,104,938 0.81%

Vitas s.a.l. (Former: AMEEN

s.a.l)15,468 28% 18,874,161 4.32% 13,195 44% 18,559,565 2.59%

MoroccoAttawfiq

Microfinance (Former: FBPMC)

220,504 58% 187,536,879 1.85% 207,647 58% 170,214,714 2.28%

PalestineFATEN 16,821 76% 31,704,517 3.99% 14,143 78% 26,847,797 4.97%

Ryada* 5,004 19% 14,550,076 1.40% 5,097 21% 12,217,541 3.80%

Sudan PASED 5,871 63% 1,240,445 1.90% 4,806 60% 1,267,685 6.33%

Syria FMFI 26,401 24% 15,433,089 5.95% 25,409 22% 28,247,352 0.91%

YemenAden 6,774 97% 1,155,688 0.00% 6,944 98% 940,287 0.00%

Al Amal Bank 23,788 72% 3,713,168 0.90% 14,156 57% 2,109,674 2.13%

*Being a September closer, third quarter represents the period from March to June.


Country

FourthQuarter2012 FourthQuarter2011

MFINumber

ofBorrowers

%ofFemale

Borrowers

GrossloanPortfolio

(USD)


NumberofBorrowers

%ofFemale

Borrowers

GrossloanPortfolio(USD)


Bahrain Family Bank 675 67% 2,380,532 35.30% 663 65% 2,289,712 44.93%

Egypt

ABA 234,371 53% 60,842,319 0.59% 187,955 54% 50,226,048.23 1.13%

CEOSS 46,542 66% 8,769,008.9 0.20% 39,306 66% 7,249,994 1.40%

CIB 28,717 19% 14,935,602.34 0.12% 24,183 19% 12,017,433 0.56%

DBACD 107,410 55% 26,373,633 0.07% 104,253 55% 25,120,386 0.46%

ESED 89,135 74% 19,604,414.66 12.86% 70,640 71% 16,303,565 14.04%

Lead 141,299 84% 21,645,252 0.90% 141,389 85% 19,142,685 7.40%

Iraq

Al Tadamun 1,365 5% 2,073,203 7.83% 1,365 3% 1,044,004 22.26%

Al Thiqa 15,572 18% 33,972,597 0.59% 14,864 16% 28,350,741 0.32%

Al-Aman Center 4,840 26% 6,979,306 0.02% 4,242 24% 5,826,579 0.02%

CHF ACSI* 20,042 16% 44,966,482 0.38% 20,997 16% 43,511,015 0.26%

TEDC 5,310 10% 6,148,961 0.18% 4,244 12% 4,980,983 0.39%

Jordan

FINCA 15,416 97% 7,597,014 0.71% 13,584 98% 6,509,777 0.74%

MEMCC* 19,331 66% 26,090,662 0.57% 14,659 68% 22,284,632 0.79%

MFW 81,208 97% 36,182,887 0.79% 63,651 97% 24,578,856 0.99%

NMB 33,142 91% 21,326,552 0.81% 31,283 92% 19,040,931 0.64%

Tamweelcom 63,526 95% 31,472,067 0.74% 67,701 96% 25,481,451 0.64%

UNRWA 10,022 35% 6,824,860 6.28% 7,132 30% 5,020,243 7.04%

Lebanon

Al Majmoua 36,664 49% 30,607,530 0.57% 28,794 43% 24,580,594 0.60%

Makhzoumi 769 46% 890,480 5.95% 587 50% 774,913 5.82%

Vitas s.a.l* 15,555 28% 18,480,281 4.85% 13,187 26% 14,977,738 2.78%

Morocco Al Amana 305,759 41% 229,791,904 0.99% 294,633 41% 233,436,316 5.75%

Palestine

ACAD 3,264 71% 4,648,372 11.59% 3,410 74% 4,466,920 9.30%

ASALA 4,922 100% 4,456,199 9.00% 4,071 100% 3,453,419 9.00%

FATEN 17,840 77% 32,526,184 4.74% 14,114 76% 13,096,117 2.25%

Islamic Relief 749 16% 1,974,761 0.00% 596 20% 1,461,715 0.00%

RYADA* 5,079 20% 14,437,757 1.40% 5,060 20% 13,096,117 1.80%

The National Bank - TNB (Former: Al

Rafah MF Bank)

6,273 36% 23,617,980 6.29% 4,109 22% 21,471,394 8.94%

UNRWA 13,959 34% 14,057,517 9.30% 13,222 31% 14,742,054 7.32%

Sudan PASED 6,005 64% 1,291,425 1.37% 4,963 61% 1,439,243 2.02%

SyriaFMFI 23,921 25% 12,949,463 3.60% 26,635 22% 25,945,817 1.68%

UNRWA 7,965 45% 1,784,033 82.10% 11,458 42% 4,434,146 12.60%

Tunisia ENDA 209,819 69% 86,641,125 3.17% 205,573 65% 72,573,460 4.94%

Yemen

Aden 6,666 96% 1,400,000 0.00% 5,560 94% 940,287 8.83%

Al Amal Bank 26,154 60% 4,448,006 0.95% 15,940 56% 2,497,049 2.05%

Al Awael 3,224 85% 422,510.49 10.74% 4,901 84% 559,121.19 2.13%

Namaa Microfinance

Program7,160 40% 2,009,783 4.10% 7,200 24% 1,285,030 11.80%

*Being a September closer, fourth quarter represents the period from July to September.


ARABIC MICROFINANCE GATEWAY UPDATESLast September, the Arabic Microfinance Gateway (www.arabic.microfinancegateway.org) celebrated its 7th bir-thday. Since its launch in September 2005, till today, the Arabic Gateway has continued to be the premier and sole resource center that contains microfinance information in Arabic. The Arabic Gateway was launched with 100 Arabic documents in its library, and this number has continued to grow with high steadiness to reach 728 Arabic Microfi-nance documents as of end of December 2012.

In Q4 2012, the number of the website‘s visitors has reached 18,101 visitors in comparison to 13,200 visitors in Q3 2012. The highest number of visitors came from Egypt, Saudi Arabia, Sudan, Algeria, and Jordan.

In order for the Arabic Gateway to continue growing steadily to satisfy the needs of the growing microfinance industry in the Arab world, the site invites all industry stakeholders to contribute to its different sections by sending news, highlights, job opportunities, and events and trainings.

For contribution, please contact the Arabic Microfinance Gateway team on: [email protected]

MEMBERSHIP UPDATESSanabel – regretfully - announces the membership termination of 4 institutions as per the decision of the General Assembly members following the network’s bylaws, since they have not been fulfilling Sanabel’s criteria recently. The institutions are: 1) Réseau desCaissespopulairesd’EpargneetdeCréditenMauritanie- PROCAPEC (Mauritania); 2) Association Al Karama (Morocco); 3) Association Atil Microcrédit (Morocco) and 4) SocialFoundationforSustainableDevelopment (Yemen).

On the other side, Sanabel would like to introduce and welcome its two newest members; namely; Tazeezfor Sustainable Development Foundation, Iraq, and responsAbility, Switzerland, which have joined the network in December 2012 to bring back and close up the year 2012, with 87 members.

1. TazeezforSustainableDevelopment,Iraq(AffiliateMember)

Tazeez for Sustainable Development Foundation is a development foundation registered at the NGO Directorate of the Secretariat for the Council of Ministers under No. IS74732 on July 5, 2011. The Foundation aims to spread awareness of the concepts of sustainable development through promoting knowledge building, establishing networks and partnerships for sustainable development between relevant groups in the Iraqi society, developing and implementing a strategy for poverty alleviation, and creating and supporting an integrated system for a range of pilot projects for the purpose of rehabilitation and reconstruction.

One of the most significant projects supervised by Tazeez is the Community Development Program, which was created to inspire hope for the people who do not get jobs at the beginning of their careers as well as widows who have expertise; however, they do not have sufficient financial resources to create small-scale enterprises that secure a livelihood for themselves and their children.

The Foundation strives to create job opportunities in order to contribute to the community development by providing financial and non-financial services, which will help to rehabilitate the members of society and achieve sustainable development.

For more information about Tazeez for Sustainable Development Foundation, please visit: http://www.tazez.com/

2. responsAbility,Switzerland(FriendofSanabel)

responsAbility is one of the world’s leading social investment companies. Its areas of focus include microfinance, SME financing, fair trade, and independent media. responsAbility’s investment solutions give people in developing and emerging economies access to markets, information, and other services crucial to their development. They enable private and institutional investors to earn a financial return while at the same time make a positive social impact.

responsAbility funds invest in microfinance institutions and microfinance banks that are lending to micro and small enterprises. They see access to financial services as key in providing development opportunities to these segments in developing economies.

For more information on responsibility, please visit the website:http://www.responsability.com/site/index.cfm?id_art=67704&actMenuItemID=30476&vsprache/EN/responsAbility___Microfinanc.cfm

Warm congratulations go to Emkan Finance s.a.l. - Lebanon, Al-Thiqa Organization for Microfinance andSmall Business Loans – Iraq, and Aden MicrofinanceFoundation – Yemen, for being upgraded to full membership status with the network as they fulfill the criteria of full membership.

Egypt0

2000

4000

6000

8000

Sudan JordanSaudiArabia

Visits in Q3

Visits in Q4


RamadanIftarGatherings

In the occasion of the holy month of Ramadan, Sanabel successfully organized a dinner/Iftar gathering for the members in Egypt, Jordan, Morocco, and Yemen in partnership with The Egyptian Microfinance Network, Jordan Microfinance Network “Tanmeyah” , “Centre Mohammed VI de Soutien à la Micro finance Solidaire”, and the Yemen Microfinance Network respectively.

It is worth mentioning that it’s the second time for Sanabel and Yemen Microfinance Network to hold the dinner/Iftar in Yemen.

The gatherings were a great opportunity for members to socialize, network, and share information and experiences, updating one another on the latest events and operations and discussing the currently available opportunities to pursue, and the new global trends and directions in the microfinance industry from which the members can benefit and use to better improve their products and services.

The Iftar was an opportunity for Sanabel and its partners to improve and strengthen their linkages, alliances and communications with the member institutions.

ANNUAL CONFERENCE UPDATES

Sanabel’s Ninth Annual Conference was held under the patronage of H.E. Dr. Abdel Rahman Al-Khedr, Khartoum Governor at Corinthia Hotel in Khartoum, Sudan from October 31st – November 2nd, 2012. Dr. Al-Khedr, and Mr. Ali Othman Taha, Vice President, inaugurated the conference.

The theme of 2012 conference was “New Decade forSanabel, New Services from the Microfinance Sector”.Over the course of three days, the participants discussed the challenges facing the Arab region in light of the continued growth of the sector, and the effects of global developments and trends on the region, especially the impact of the Arab revolutions and uprisings on the sector. Also, there was a focus on; a) the important political changes, which happened over the past two years, and resulted inevitable changes on the social, political and economic levels, b) the importance of developing strategies for inclusive growth in the upcoming period to address issues related to poverty and food insecurity and job opportunities.

Moreover, ideas about opportunities to provide new and innovative products in the region during the coming period were discussed. These products are: Islamicmicrofinance products: What are the challenges that hinder these models and their ability to reach and meet the needs of the poor in a sustainable manner. Micro-insurance products: How can the design of micro-insurance products suit the nature, the conditions and the capabilities of the low-income clients, and at the same time meet the clients’ needs. SavingsproductsforYouth: How can youth savings products be particularly effective in enhancing the financial capability dimension of the financial inclusion.

The conference was attended by more than 350 partici-pants, including microfinance practitioners, government officials, investors, donors, and other industry stakehold-ers from the Arab region as well as 60 regional and inter-national speakers.

In addition to the wide-ranging conference program, the conference also presented a significant networking opportunity for all the conference participants.

Below are some highlights of the key events andactivitiesthattookplaceduringtheconference:

1-Conference’sExhibition

The conference provided participants with opportunity

Sanabel Iftar in Egypt

Sanabel Iftar in Moroco

Sanabel Iftar in Yemen

Sanabel Iftar in Jordan


to meet the industry’s leading service providers and representatives from donor and partner organizations in the conference exhibition, which was been held during the three days of the conference. Sanabel’s ninth annual conference’s exhibition hosted 11 organizations from the region and beyond, whose representatives were available to discuss their products and services and provide participants with the latest information and reports on the industry.

2-Microentrepreneurs’Souk

During the conference, Sanabel hosted a 3-day microentrepreneurs’ souk, bringing 10 talented Sudanese microentrepreneurs (from two Sudanese MFIs members in Sanabel) together in order to provide conference participants with the opportunity to talk to these business owners directly and pick-up local crafts and souvenirs without having to leave the conference venue. The souk also provided these Sudanese microentrepreneurs with an occasion to showcase and market their products to a large and diverse audience.

3- Grameen - Jameel Microentrepreneurs and MFIAwards

A.RecognizingSudaneseMicroentrepreneurs

Sanabel and Grameen-Jameel recognized outstanding local microentrepreneurs that were nominated by Sanabel’s members in Sudan. The Sudanese microentrepreneurs who were selected to receive this honor have all exemplified the true spirit of entrepreneurship, using their creative minds and independent decision-making to transform their small businesses into successful and growing enterprises. Each has demonstrated innovative thinking, impressive business skills, and has played an instrumental role in improving the livelihoods of their families and advancing their communities.

The winners received a trophy, a certificate, and a cash award of USD 1,000 sponsored by Grameen-Jameel during the opening session.

B.MFIAwards

For the third year consecutively, Sanabel and Grameen-Jameel organized the MFI awards program to recognize Arab microfinance institutions who demonstrate excellence in 1) Innovation 2) Leadership, and 3) Sustainable Growth. The Award winners received the awards at the opening session of the conference.

This year’s winners are:

1. MicrofundforWomen(MFW)–Jordan(InnovationAward)

2. Palestine for Credit & Development (FATEN) –Palestine(LeadershipAward)

3. Al Amal Microfinance Bank – Yemen (sustainableGrowthAward)

MEMBERS’ NEWSHH Sheikh Mohammed bin Rashid Al Maktoum givesentrepreneurshipawardtoBabRizqJameel

At the Global Entrepreneurship Summit (GES) in Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum presented an award to Bab Rizq Jameel as the ‘Best Initiative to Support Entrepreneurship in the Arab World’, recognizing its achievement in job creation across the Middle East.

Accepting the award on behalf of BRJ, Mohammed Jameel, Chief Job Creating Officer for BRJ MENA, said: “BRJ is one simple, grassroots solution to the problem of unemployment that has, from small beginnings, begun to make a significant difference to lives of thousands across the region. Ultimately it is creating a business model that empowers people, giving them control over their lives and a stake in their future.

“This recognition is an honor and a testament to the hard-work and dedication of everyone involved with BRJ, and I am delighted to accept it on their behalf. I hope in time that we will see competitors emerge in the business of job creation. More competitors mean more jobs, and the region needs more employment opportunities as populations continue to grow.”

Al-Amal Bank is partner for the second largest remit-tancesproviderintheworld

In the context of the bank’s directions to offer inclusive financial services that meet the demand of its target groups, Al Amal Microfinance Bank has developed and launched a new service; local and international remittances, given the wide branch network of 17 branches spread around several governorates. This service is expected to be of high success and will achieve further expansion to the bank in terms of the number of clients and branch network. In terms of international remittance, Al Amal Microfinance Bank has signed a super-agent agreement with the MoneyGram Company, the second largest remittance company in the world which has about 27,600 point of service in 192 countries across the world, to offer the international remittance service to the immigrant Yemenis in the world.

“People that live and work in Yemen depend on our global network of agents to send and receive money to their loved ones,” said Richard Meredith, Senior Regional Director of the Middle East, Pakistan and Afghanistan. “Amal’s unique identity, along with its microfinancing products, makes them an ideal addition to our local network.”


“MoneyGram provides access to services that are critical to the people living and working in Yemen”, said Mohammed Al-Lai, CEO of Al-Amal Microfinance Bank. “As we look to expand our capabilities to Yemeni customers, becoming a MoneyGram agent will help us deliver money quickly and reliably to our customers, connecting them to their families across the region and world”.

AlRafahMicrofinanceBankannouncesitsnewcommer-cialname“TheNationalBank(TNB)”

Al Rafah Microfinance Bank (AMB) announces its new commercial name and corporate identity to be “The National Bank (TNB)“ as of November 21st, 2012.

The new identity marks for the start of a new area for the bank based on the new vision and strategy. Launching the new identity was approved by all the relevant governmental and supervisory authorities.

It is worth mentioning that changing the name of Al Rafah Microfinance Bank to “The National Bank (TNB)“ will not have any legal influence on any obligations, commitments or agreements signed by Al Rafah Bank. The Bank will hold and operate under the same licenses and will continue to be registered under the same number.

FATENwinsGrameen–JameelLeadershipAward

In recognition of its firm commitment towards sustainable development and responsible action, the Palestinian for Credit and Development (FATEN) received Grameen-Jameel Leadership Award for 2012, for its role in microfinance as a leading non-profit MFI, having demonstrated leadership in its local sector, customer retention, human resources, new product offerings, poverty focus, operating in a difficult environment and others, making it distinct from other Arab MFIs.

On Wednesday, October 31st, 2012, the winners were honored at the opening session of Sanabel’s ninth annual conference, held in Khartoum, Sudan, with the presence of international and national senior figures, including ministers, ambassadors and pioneers of the microfinance industry. The award was delivered by the Sudanese Vice-President Mr. Othman Taha to FATEN’s General Director Mr. Anwar Jayousi. FATEN also received a cash prize from Grameen-Jameel in recognition of its achievements in leadership in the Arab world.

In a speech delivered by Mr. Jayousi, he expressed his thanks to all who are responsible for this distinctive award and everyone participated and helped to provide support and assistance to the microfinance industry in the region. “Winning the award is not a target in itself; it is a result of hard work and outstanding efforts. This award comes to complete FATEN’s progress path, and it is a source of pride for FATEN’s management, staff and clients, which is clear evidence of FATEN’s advancement and development of service provision in line with the challenges and opportunities“, he added.

First Version of International Symposium on Microfi-nanceinMorocco

Under the patronage of His Majesty King Mohammed VI, the International Symposium on Microfinance in Morocco was organized by Fédération Nationale des Associations de Microcredit - FNAM in cooperation with Centre Mohammed VI de Soutien à la Microfinance Solidaire, on October 11th -12th , 2012, in Morocco.

His Majesty King Mohammed VI addressed a message to the participants in the Symposium, where he expressed his hope that the sector’s new strategy will enhance Morocco’s position as a reference model in the region in terms of microfinance and income-generating activities.

The Symposium was an opportunity to present the outcome of the microfinance sector in Morocco over the past years and introduce its new strategy, which aims to provide microfinance services to about 3.2 million people and create two million job opportunities by the year 2020.

The agenda allowed sharing experiences and practices at the international level through several sessions headed by national and international experts and speakers who indicated that the implementation of this strategy requires further development of MFIs to expand their scope of financial services (micro-insurance, remittances, payment methods, etc.).

The Symposium activities were characterized by rich input, discussions and many local experts and journalists, who extensively covered the event.

It also included an exhibition to market the products of microentrepreneurs and a contest to highlight the talents of borrowers who could develop their businesses, thanks to their hard work and proper use of microloans.

The event ended with distributing prizes to 18 borrowers from different microfinance institutions in Morocco.

NewnamefortheFondationBanquePopulairepourleMicrocrédit

In order to anticipate changes notably on the institutional level which appears on the horizon, the Fondation Banque Populaire pour le Microcrédit (FBPMC) announced, on this occasion, new arrangements such as strengthening its position on the top of the very small sized enterprises market, developing new products and services and enlarging its activity with many African and Arab countries. With a view to carrying out this new ambition, a new name of the Foundation has been imposed: “ATTAWFIQ MICRO-FINANCE“.

This new name was revealed upon the convention of the personnel and it means “success” in Arabic. It will allow to mark a new strategic direction in a spirit of continuity going from the microcredit to the microfinance market and to give a new boost to the institutional image of the Foundation.


MakhzoumiFoundationreceivestheCitiGroupAwardforthe7thconsecutiveyear

For the 7th consecutive year, Makhzoumi Foundation participates through its Micro-Credit Program in the annual contest for small entrepreneurs, being one of the leading and most effective institutions in the field of microfinance in Lebanon. This competition is organized by the Young Men Christian Association (YMCA) on behalf of City Group Banking Group.

Three of the Foundation’s beneficiaries received Citi Group Awards during the ceremony that was held at the Habtoor-Metropolitan Hotel in Beirut, on December 18th, 2012, under the patronage of the Minster of Social Affairs, Mr. Weal Abou Faour.

The winning beneficiaries are: Ms. Iman Nakhal (The 1st prize of the Leading Woman category), Ms. Fatimah Amhaz and Ms. Nuhad Nehmeh.

MicrofundforWomenhasbeenrecognizedasthebestinstitutionforsupportingwomenintheArabWorld.

Microfund for Women received the Mohammad Bin Rashid Support of Youth Projects Award for the category of best institution for supporting women in the Arab World.

Also, entrepreneurs from the Arab World were rewarded for their efforts in supporting small and medium projects.

Microfund for Women was awarded by his Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai during the Preeminent Global Summit and Exhibition for Innovation, Entrepreneurship and SMEs on the 12th December, 2012.

National Microfinance Foundation develops new ex-pansionmechanism

Mr. Danny Ibrahim, head of public relations in (Grameen Jameel) inaugurated new service point in Daris based on (ROUB ) model which was developed in National Microfinance Foundation. Mr. Dani has paid a visit to the new Service Office of NMF in Dali’a governorate (Damt city) and he was pleased to see the good results for expansion mechanism used in the NMF lately.

The new expansion mechanism called RUOB for short (rural and urban offices attached with branches) & was funded by Social Fund for Development.

Mr. Dani has expressed his admiration for the benefit of such a mechanism was developed in NMF.

The new expansion mechanism participated in reduce service transaction costs in NMF & helped to raise the number of service points in NMF to 16 points until the end of November.

Ryada’sinitiativesincommunityinvolvement

Through its deep belief in serving the Palestinian community, Ryada is highly involved in Injaz Palestine. Injaz Palestine is a member nation of the global organization Junior Achievement that was established in 1919, in which over nine million students participate in over 124 countries annually.

Through volunteering at Injaz Palestine, Ryada’s team members are reflecting their knowledge to the school students in order to fill in the gap between the academic curriculum and the actual life. Ryada volunteers are training the school students on how to get ready for the future, how to write a resume, how to take financial decisions, business ethics, how to deal with their surroundings, and how to plan their lives through setting goals and achieving these goals, in addition to other similar subjects that are all related to how to lead a successful life and be ready for the future.

One of Ryada’s volunteers said: “Injaz Palestine is a very good program in giving the chance for school students to listen to people’s experiences and learn from them.” She also added: “I wish we had Injaz in our time in order to learn how the real world outside the school looks like.”

Ryada employees are giving classes to grades 8th and 9th in one of the schools which are engaged with Injaz Palestine. Each employee dedicates one hour of his/her time to give one class per week.

Due to the increase in fuel prices and to fulfill clientneeds, Tamweelcom extends its «Repay and Renew»CampaignanddoublesitscouponvaluefortheWinterseason

The Jordan Micro Credit Company (Tamweelcom) extended its «Repay and Renew» campaign, launched last October for its micro projects clients, within the Tamweelcom scope of work, which includes 24 branches throughout the Kingdom. The campaign targeted the Company’s clients, whereby a client can renew financing and benefit from the facilities provided by the campaign by obtaining a fuel coupon, in addition to many other non-financial benefits provided by Tamweelcom to its clients throughout the financing process. Due to high fuel prices and in order to satisfy client needs, Tamweelcom has opted to extend the campaign period until the end of the year, and to double the fuel coupon value, in order to enhance the Company’s social objectives and stress Tamweelcom’s keenness to stand by its clients and extend support to small projects owners.


Tamweelcom’s Executive Director, Mr. Ziad Al-Refai said: “The «Repay and Renew» campaign is considered one of the most important campaigns targeting Tamweelcom’s clients, emanating from its keenness to protect them and motivate them to utilize the campaign benefits and financial services, especially this year’s campaign benefits, which aim at assisting clients by providing benefits for which clients are in real need. This is our duty towards our social responsibility, based on our slogan «Tamweelcom Cares.»“

Al-Refai added: “Four thousand clients have benefited from the campaign until now, with amount of around JD60, 000 against coupons. Extending the campaign coincides with the increase in fuel prices. We know the extent to which small projects’ owners and low income groups need material support in view of these difficult circumstances. This is also in line with our strategic objectives, due to what we provide in terms of numerous and integrated services and creative ideas which fulfill all client requirements.“

With more than 40 microfinance clients, the YemenMicrofinanceNetworkheldstheClients’Fair2012

Under the slogan «This is how they changed their lives», the Yemen Microfinance Network (YMN) organized the 2012 clients’ fair for the first time after it was regularly organized by the Social Fund for Development (SFD) since 2004. The fair was held for 7 days from 13 – 17 October 2012. All YMN members, small and microenterprise unit, and the heritage unit at SFD participated in the clients’ fair. The fair was attended by more than 40 Microfinance clients who presented their products which included sewing incense, household pottery painting, and other products.

It is worth mentioning that the clients’ fair inaugural ceremony witnessed extensive media coverage in a large number of local newspapers, news websites, and TV channels including Aljazeera Mubasher, which presented a live broadcast for 1 hour about the 2012 clients’ fair.

The Minister of Social Affairs and Labor H.E Dr. Amat Alrazzaq Ali Hommad attended the opening ceremony representing H.E the prime minister Mohammed Salem Basindwah. Furthermore, the Mayor of Sana’a Mr. Abdulqader Ali Hilal and representatives from embassies, international & local organizations, government officials, representatives from the private and public sectors attended the inaugural ceremony.

DID YOU KNOW THAT……?1

• Total GLP in the Arab region in 2011 was USD 2.5 billion, from 2010 to 2011; the overall trend increased for the region as a whole except for Egypt and Morocco.

• Total outreach in the Arab region in 2011 was 3.64 Million borrowers with an increase of 6% compared to 2010.

• In 2011, the Egyptian market maintained the second largest share of the market in terms of outreach following the Moroccan market.

• Egyptian and Moroccan markets saw their regional outreach share decline by 7% and 3% respectively in 2011 compared to 2010, while Sudanese market saw an increase in its outreach by 368%. The sudden increase in the Sudanese market is attributed to the increase in sample size from 8 MFIs in 2009 to 42 MFIs in 2011 including Public banks.

• In 2011, the Sudanese market recorded the highest regional share of GLP of 24% as a result of the increase in the sample size from 8 MFIs in 2009 to 42 MFIs in 2011 including Public banks. The Moroccan market, which has always dominated the regional market share, came second at 21%.

• Egypt’s outreach and scale both witnessed a slight decrease of 7% from 2010 to 2011, while Tunisia and Yemen both witnessed an increase in outreach despite the political situation. Overall, the Arab spring and the political instability did not have a strong effect on the end-of-year results of the sector.

ANNOUNCEMENTS1.LinkEdDevelopmentFinanceE-learningCourses

StartingMarch4,2013

Germany

LinkEd, the development finance e-learning platform of Frankfurt School of Finance & Management has designed high-quality e-learning courses tailored to financial practitioners worldwide:

• Certified Expert in Microfinance

• Certified Expert in SMEFinance

• Certified Expert in RiskManagement

• Coming up 2013: Sustainable Energy Finance e-learning course

Frankfurt School delivers applicable content that will help to achieve personal career objectives and that will

1Unless noted all data in this section is based on 2011 Sanabel Industry Survey. From 640 Arab MFIs: 504 from Egypt (including 479 from SFD), 42 from Sudan, 16 from Palestine, 14 from Yemen, 14 from Iraq, 12 from Morocco, 11 from Lebanon, 9 from Jordan, 5 from Syria, 4 form Tunisia, 4 from Bahrain, 3 from Mauritania, and 2 from Saudi Arabia.


make an impact on the bottom line of institutions of the participants. The 6-monthpart-timecertification courses match individual schedules. It is up to the participant when and where to study. This allows balancing a busy workload and family obligations with an intellectually stimulating programme.

Whatdothecoursesoffer?

• An interactive e-learning course including video lectures and PDF scripts, practical exercises, online tests and case studies

• An interactive discussion forum for course related issues as well as for exchange of opinions and experiences between classmates and tutors.

• Personalized support of the LinkEd team

• The option to obtain a Frankfurt School certificate upon passing the final exam or a confirmation of course completion after working through all of the modules.

• A large network of final exam locations at partner institutions all over the world.

For further information, please visit: www.linked.fs.de

Or contact the LinkEd Team

Tel : +49 (0)69 154008-624

Fax : +49 (0)69 154008-4624

Email : [email protected]

Website : www.linked.fs.de

2. Sam Training 2013: Building High PerformanceMicrofinanceInstitutions

2–9September,2013

Mombasa,Kenya

The School of African Microfinance (SAM) annual two-week training is designed to expand the collective capabilities of institutions by building individual knowledge and skills to achieve strategic goals; to achieve high performance that creates sustainable value.

SAM is singularly focused on delivering the knowledge, skills and capabilities that ensure institutions have market-focused strategies; execute flawlessly – delivering appropriate products and services; and have the culture, structure and talent to perform.

Course sessions consist of core lectures, practical exercises and applied cases organized into morning and afternoon sessions. From the following 14 courses on offer SAM participants are able to participate in a maximum of 4 courses.

• Business Planning with Microfin

• Reporting, Financial Analysis & Performance of MFIs

• Product Development

• Agriculture Value Chain Finance

• Delinquency Management

• Managment for New Managers

• Customer Service Excellence

• Business Process Improvement

• Strategic Marketing & Branding

• Talent Management

• Internal Controls & Fraud

• Savings & Transformation

• Insightful Leadership

• Managing Change and Growth for Organizational Leaders

FeesandExpenses: US$4,950 (Fee covers tuition, course documentation, meals & accommodation (from the night before the course commencement).

For more information, please visit: http://www.samtraining.org/

SUGGESTED READINGS1. Some Successful International Experiences in the

Development of Small and Medium-Sized Enterprises

http://arabic.microfinancegateway.org/content/article/detail/94282

2. Impact of Micro-enterprises on the Standard of Living of the Target Group


3. Towards A Better Management of Non-Governmental Organizations


4 Making Microfinance Work in the Middle East and North Africa


5. The Role of Microfinance Industry in Reducing Unemployment



6. Alternatives of Microcredit in Morocco and Ways to Prevent Risks


7. Reality and Development Prospects for Islamic Microfinance in Palestine


8. Microfinance Experience in South Darfur: Opportunities and Challenges


CONTACT USTo know more about Sanabel’s activities, please visit our website: www.sanabelnetwork.org

Or contact us at Sanabel office:

14 Square Hayeit Al Tadrees, off Messadak Street, 3rd floor, Dokki, Giza - Egypt

Office Phone: (+2) 02 - 37 60 37 56, 0100 - 999 59 69

Email: [email protected]

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