Project area
In Africa, the microfinance sector is not as developed as in other developping regions. Therefore MIL was actively looking for a microfinance development project in Africa.
Although Senegal has some successfull MFIs, there is still a big need for microfinance in the rural area. Despite the progress of the urbanization phenomenon, more than half of the Senegalese populations live in the rural environments. These populations face numerous economic and social difficulties and living conditions remain precarious. According to the Strategy Document of Poverty Reduction, its impact is between 72% - 82% in rural habitats in comparison with 44% - 59% in urban environments. Despite the combined efforts of backers and of the government, rural microfinance continues to occupy a negligible place in the microfinance sector in Senegal.

Project goals
The project improves the living conditions of the rural populations by reducing the development disparities between the urban and rural environments and enhancing the access to financial services.

Specific project goals

• 30'000 persons have access to financial services and to short term courses to improve their income generating activities.
• 480 microentrepreneurs are trained in business courses
• The products of the MFIs are adjusted to the need of their clients. At least three new products are developed and offered to the clients of the MFIs.
• Three MFIs working in the rural area of Senegal are closely analyzed and strengthened.
• The Senegalese Microfinance Networt AP/SFD is supported.
• A book with best practice for rural microfinance is published.

Organization of implementation
The project is implemented by PlanetFinance.

Funding
The project support of MIL is 132'800 CHF (Sept. 2008 - March 2010).
The project is funded by the Liechtenstein Development Service (LED)