The European Microfinance Platform is pleased to announce that the 6th
European Microfinance Award recognises microfinance in post-disaster,
post-conflict areas and fragile states, and welcomes applications from
institutions that have demonstrated an integrated response to support
and build resilience for vulnerable households and communities living in
exceptionally difficult environments or circumstances.
After natural disasters, health crises or armed
conflicts, populations experience critical levels of poverty, insecurity
and instability. Not just people, but infrastructure, economic
conditions, social cohesion and mobility are all victims of disaster or
conflict in so-called “fragile states”. And while addressing these
challenges requires a spectrum of interventions, microfinance -
alongside traditional relief and aid channels - can play a key role in
creating employment, driving economic growth, ensuring a range of
critical services, and bringing people together during times of need and
shared challenge.
But microfinance is difficult to do well even in stabile
markets, and is even harder in the aftermath of disaster or as a region
transitions from civil conflict into a fragile peace. The systemic
risks are both internal – such as increases in portfolio at risk through
default or delinquency, or a drying up of capital or run on savings –
and external – from environmental and infrastructural to macroeconomic
slowdown or currency depreciation.
In the face of these enormous challenges, certain MFIs
demonstrate that the hurdles are surmountable. While every situation is
different, what these institutions share include flexibility, vision,
patience, resilience and compassion. Many have shown that they can
operate and even thrive in these contexts, providing a range of
financial and social services to clients who’re at their most
vulnerable, and in doing so, increase financial inclusion, help the
economy, and build a positive vision for the future when it’s so
desperately needed.
To this end, the 6th European Microfinance
Award will recognise MFIs that operate in post-disaster/post-conflict
areas and provide financial and non-financial services aimed to increase
the resilience of the affected, vulnerable population. The Award
of €100,000 is granted by the Luxembourg Ministry of Foreign and
European Affairs – Development Cooperation and Humanitarian Affairs and
is jointly organised by the Ministry, the European Microfinance Platform
(e-MFP) and the Inclusive Finance Network Luxembourg (InFiNe.lu) in
cooperation with the European Investment Bank (EIB). It will be
presented at the Award Ceremony on 19th November 2015 during the
European Microfinance Week.
Successful applicants should demonstrate an effective
strategy to increase both their own resilience (i.e. operations, staff,
policy, control) and that of their clients (appropriate financial
and non-financial services), while ensuring responses that provide both
for the immediate, medium- and long-term needs of the latter. They must
be active in the financial services sector and be based in a developing
country. Various types of microfinance institutions are eligible
including NGOs, cooperatives, MFI networks, investments funds,
commercial banks, development banks, leasing firms, insurance companies,
etc.
