AFC’s competencies
EXPERTISE OF AFC’S FINANCIAL SEC TOR DEVELOPMENT DEPARTMENT Financial sector development plays a crucial role in the economic development of a country. It increases access to finance and reduces inequality. Across the globe, AFC’s specialised Financial Sector Development team advises financial institutions (FIs) — including commercial and central banks, mortgage companies, microfinance and apex institutions — and micro, small and medium enterprises as well as smallholder farmers, in the following focus areas.
Micro and SME Finance: We support FIs, which want to down-scale their operations to lower-income clientele in MSME lending, risk management, product development, business planning and strategic development, and improve their management information systems. Green Finance: Our experts develop and customise “greening” strategies and innovative financial products, support awareness raising on climate risks, demonstrate benefits of environmentally sound investments, establish environmental and social management systems and perform environmental and social due diligence. Digital Finance: Digital financial services like mobile payment, ATMs, and point-of-sale terminals make financial services more accessible to previously excluded people. We support our partners for example in rolling out a national biometric payment infrastructure in rural areas.
Housing Finance: We identify housing needs along with suitable lending products and develop policies and procedures, improving access to housing finance, energy efficiency as well as environmental and social standards. Financial Literacy: Our financial education trainings, adjusted to the realities of micro entrepreneurs, farmers or the rural population, enable individuals to make savvy financial decisions and become more bankable. Gender Finance: We analyse barriers for women-led businesses to access financial products and services, train bank staff in integrating a gender perspective and advise central banks on women’s financial inclusion. At the same time, we aim to mainstream the topic into project implementation, including gender-sensitive monitoring and reporting.
Agriculture and Value Chain Finance: We conduct studies on agricultural value chains financing needs; provide trainings on financing instruments, agricultural risk and cash flow analysis. Moreover, we developed an agricultural loan-scoring tool as well as an outstanding agricultural finance e-course (see p.10). For further information, please contact:
Financial Sector Regulation and Supervision: To ensure transparency in financial markets, we offer our expertise to regulatory authorities in improving regulation and supervision of banks, stock markets, insurance companies, and capital and pension funds. Financial Institutions Development: For the sustainable development of local FIs, we qualify internal trainers and offer capacity building and trainings, improving skills of bank staff necessary to acquire, serve and retain customers. Insurance Systems: Our expertise covers a wide range of products from SME insurance, Islamic bankingcompliant products, credit-life insurance, agriculture and climate-risk insurance.
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Holger Christ Director of FSD department holger.christ@afci.de
