SEDPI Completes SBC Engagement

On June 28, 2014, SEDPI completed the capacity building program to three microfinance institutions (MFIs) under the Department of Trade and Industry’s Rural Micro-Entrepreneur Promotion Program (RuMEPP). RuMEPP was launched in 2007 with the Department of Trade and Industry (DTI) as its lead implementing agency. RuMEPP is a seven-year project of the International Fund for Agricultural Development (IFAD) based in Rome, Italy. The specific objectives of the program are (1) to increase the volume of finance available to micro enterprises; and (2) provide efficient, cost-effective and demand-responsive business development services to rural micro enterprises.

The Small Business Corporation (SBC) provides loans and capacity-building services to microfinance institutions (MFI) operating in the provinces included in the project under one of three RuMEPP components – Microfinance Credit and Support. The other two components are Microenterprise Promotion and Development and Program Management and Policy Coordination.

SBC awarded three contracts to SEDPI starting April 23, 2013 to build the capacity of three MFIs that are not yet eligible for loans but are operating in the 19 priority provinces of RuMEPP. These MFIs are Fatima Multipurpose Cooperative, Bibak Multipurpose Cooperative and Basak Layog Multipurpose Cooperative. The cooperatives are located in Leyte and Kalinga.

SEDPI provided the organizational appraisal, trainings and technical and mentoring assistance to the MFIs. Organizational appraisal refers to the diagnosis of an organization’s financial performance, human resource management, information systems, financial performance, products and services, governance structure, marketing, and general operations. This phase aims to determine the capability-building intervention needs of the institution and to provide an expert analysis on each interventions. The technical and mentoring assistance is delivered on a mentor-learner approach as SEDPI closely supervises and monitors an institution’s progress towards sustainability. The trainings delivered to the MFIs covered character and capacity-based lending; delinquency management training; strategic planning; and disaster management.