MICROCAPITAL BRIEF: ADA will promote financial inclusion in Niger by improving product design, supervision and the financing framework

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Appui au Développement Autonome (ADA), a Luxembourg-based NGO that supports microfinance institutions (MFIs) in low- and middle-income countries, recently entered into a contract with the Luxembourg Directorate for Development Cooperation and Humanitarian Affairs in the goal of creating jobs and otherwise reducing poverty in Niger by improving access to financial services. With a budget of 15 million euros ($16 million) until 2026, ADA will carry out the program in partnership with LuxDev, a Luxembourg government agency dedicated to promoting international development. The effort is part of a larger LuxDev effort in Niger that has a total budget of 145 million euros ($156 million).

In particular, ADA will provide technical assistance with respect to: (1) restructuring struggling MFIs and strengthening more successful ones; (2) improve government oversight capacity; (3) assist the government in setting up a new financing facility for the sector; (4) help MFIs design loan products specific to various needs – such as those of women, youth, and agricultural enterprises – as well as loans for specific purposes – such as housing and drinking water; and (5) help MFIs develop non-credit services, including digital microinsurance and online marketplaces.

Founded in 1994, ADA aims to reduce poverty by investing in and supporting MFIs in the Americas, Asia and Africa. As of December 2020, ADA was managing loans totaling €26.5 million ($28.6 million) outstanding with 51 institutions in 24 countries. During this year, the NGO administered technical assistance to 130 financial service providers. ADA’s financial information for 2021 is not available at this time.

By Hasnat Aslam, Research Associate

Sources and additional resources

ADA press release
https://www.ada-microfinance.org/en/blog-news-ada/ada-helps-broaden-access-financial-services-niger

ADA home page
https://www.ada-microfinance.org/

Lux-Development homepage
https://luxdev.lu/

Homepage of the Directorate for Development Cooperation and Humanitarian Affairs
https://cooperation.gouvernement.lu/

ADA Activity Report 2020
https://www.ada-microfinance.org/en/our-resources/media-center/ada-activity-report-2020

Previous MicroCapital article on ADA
https://www.microcapital.org/microcapital-brief-adas-ssnup-incofins-agtaf-supporting-mobile-app-from-sohan-lal-commodity-management-slcm-of-india-easing-farmers-buyers- seed-evaluation/

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