The goal of the Microfinance Summit Nepal 2010 is to unite microfinance stakeholders in Nepal and ensure microfinance for inclusive economic growth. The aim is to improve and increase outreach to all households in need of microfinance services with the development of a joint microfinance strategy and action plan.
The objectives of the Summit are to:
There are a number of outcomes expected produced before, during and after the Summit.
In the buildup to the Summit, stakeholders will be asked to update their outreach information as well as prepare ideas for their action plans and outreach targets.
During the Summit, a joint declaration will be prepared which shall incorporate the suggestions of all participants on how to improve the microfinance sector in Nepal. This document will provide policymakers with feedback on how microfinance stakeholders envision the future of the sector. These suggestions can then be reflected in the Government’s strategy papers and policies.
After the Summit, the proceedings will be published in order to provide all stakeholders with the actions that the various stakeholders have committed themselves to. The publication or abstract will also serve as a tool to further raise public awareness. Extracts from the publication will be used to present the results of the Microfinance Summit at the Global Forum.
These Summit outputs are aimed at producing a number of outcomes among the different stakeholders.
The first outcome will be that stakeholders shall see themselves as an integral part of the microfinance movement in Nepal. Despite the fact that some of the institutions involved will attempt to operate with a competitive mindset, all stakeholders shall recognize the need to coordinate with each other for the greater good of developing the microfinance sector.
The second outcome is that stakeholders can plan and implement their strategies and activities based on an improved knowledge of the status of microfinance in Nepal and worldwide. This means that institutional development plans of the individual stakeholders will be based on a sound understanding of their own strengths and weaknesses in addition to any opportunities and threats present in Nepal’s microfinance market.
The third outcome is that policymakers and regulators will have a much better understanding of what the sector further needs to grow and provide information regarding the international practices in microfinance regulation. This enables them to make informed decisions and develop strategies and policies which are understood and supported by microfinance practitioners. In addition, the event creates mutual trust between the public and the private sector by openly showing each other’s capabilities and limitations.
The fourth outcome is the product diversification of microfinance in Nepal such as clean and green finance, remittances, education, health insurance, value chain, and savings and credit schemes.
The fifth outcome is an increased awareness in Nepal and elsewhere regarding the efforts all stakeholders are making to improve the living conditions of the poor in Nepal. A showcase of the product diversification of microfinance has the intention of not only raising awareness, but also of depicting the potentials that lie within microfinance. This should manifest itself in an increase in sources of funding available for microfinance development and support for inclusive economic growth.
The final outcome that is expected from the Summit is the protection of microfinance clientele. The practice of client duplication not only provides inaccurate statistics regarding the range of the microfinance sector, but also increases the chances of loan defaults and the disruption of the client's way of life. Through efforts to increase the entrepreneurial skills of clients, it is hoped that they will be able to use their loans effectively and reduce the incentive to accept loans from other microfinance institutions.
The impact, it is hoped, will result in the emergence of sounder microfinance institutions and networks, and a stronger microfinance support structures through:
This, in turn, should help Nepal’s poor to gain access to affordable and sustainable micro-financial services.