Informal Microfinance Group Becomes “Network of the Year”
The Azerbaijan Micro-finance Association (AMFA) was born in December 2001, following the the country’s first microfinance conference. At that event, 10 private international organizations signed a memorandum of understanding to promote sustainable and equitable economic growth by strengthening the capacity of Azerbaijan’s micro-finance institutions. Prior to formal registration and without any full time staff or established governance structure, AMFA started its activities by supporting the registration process of its founding members and working with government authorities to simplify the registration process for other institutions.
In 2002, the proactive efforts of the informal AMFA working group paid off when AMFA received a three-year institutional development grant from the Small Enterprise Education and Promotion (SEEP) Network, a global organization that promotes best practices in financial services and enterprise development. Through its grant, SEEP Network provided support for enhanced access to learning opportunities, linkages to other networks, and technical assistance.
During the next few years while fulfilling individual member requests, common membership expectations began to emerge, pushing AMFA to focus on its ability to support its members’ institutional capacity development. To support its members, AMFA began to realize that it would need the technical and financial support of international organizations to apply international best practices.
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(From left) Jhale Hajiyeva, AMFA Executive Director, William Tucker, SEEP Executive Director, and Ms. Laura Meissner, SEEP Senior Program Associate are all smiles at the 2007 SEEP Network of the Year Award Presentation ceremony in Washington, DC
Photo Credit: Nigar Pirmammadova |
To further develop AMFA, and in turn the broader microfinance sector, USAID’s SME Support through Financial Sector Development Project, implemented by ACDI/VOCA, has been providing assistance since 2005 to strengthen the capacity of AMFA staff and increase its operational effectiveness. The Project fielded consultants who provided on-the-job capacity building of AMFA, supported the 3rd Azerbaijan Microfinance Conference in 2006, facilitated development of AMFA’s Strategic Plan, and supported new membership services such as an internship program, in-house trainings for member staff, a feasibility study on domestic credit bureaus and numerous staff trainings.
The Project also enabled AMFA to establish strategic relationships with the Microfinance Information Exchange, the World Bank’s Consultative Group to Assist the Poor and the Microfinance Center of Poland. Throughout project implementation, particular attention was paid to support innovative initiatives and linkages to other organizations that support AMFA’s sustainability and member needs.
AMFA recently received the SEEP Network’s 2007 Network of the Year Award for outstanding service delivery. This honor is an important milestone in AMFA’s history, marking international recognition of AMFA’s growth in capacity and strategic direction in Azerbaijan. Within one month of receiving this award, AMFA received an $87,000 grant from the Interchurch Organisation for Development Co-operation for a new project in social performance measurement.
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