Active Participation in Economic Life through access to financial literacy and financial services for entrepreneurial people.
The objective of project interventions is to provide tailored and affordable financial solutions to smallholder farmers, households and SMEs. These services include savings and credit, insurance products and payment transactions.
Swisscontact strengthens financial literacy of SMEs and smalholder farmer and supports financial institutions in the development of apropriate products and services.
Often, with access to financial services, the economic potential of disadvantaged groups increases. Adequate financial services enable households, SMEs and farmers to grow and establish their businesses sustainably.
Swisscontact promotes the supply and demand side of financial services, concentrating on creation and development of new, inclusive financial products and services.
Swisscontact creates new, inclusive financial products and services to better meet the potential customers’ different needs. Analysing requirements and developing new products with partners offers an opportunity for Financial Service Providers to access new clients and offers them new sources of income and contributes to strengthening their financial viability.
The development of new technologies and measures to improve infrastructure focuses on the widespread access to mobile devices and improvements to communications technology. Technology plays a critical role at financial institutions and is a vital element of the innovation taking place to advance inclusive finance. Financial Service Providers’ use of technology can greatly improve organisational efficiency and reduce transaction costs.
In addition to supporting the organisational development of Financial Service Providers, Swisscontact also seeks to build the capacity of the Financial Service Providers workforce. Swisscontact collaborates with universities and other tertiary education providers to develop specific curricula suited to local financial institutions and markets.
Working side by side with Micro Finance Institutions or within informal project approaches, Swisscontact’s initiatives provide consumers with information and resources to develop their knowledge and skills,as well as to achieve financial literacy in order to manage their financial resources effectively.
Microleasing for SMEs and Agricultural Businesses
To support economic development, Swisscontact promotes the concept of microleasing for smallholder farmers and SMEs to purchase productive assets.
As an alternative to loans, microleasing is an innovative approach to making assets more accessible. Using the leased object, whether a cow, water pump or chainsaw, as collateral, a small farmer is afforded the chance to acquire productive assets without having to go into debt. Microleasing addresses the above-mentioned issues and eliminates the need for individuals to borrow or commit their resources upfront. Risk is instead mitigated by a collateralised and insured assets, while credit-worthiness is based on future prospects and potential cash flows rather than on an individual’s credit history.
Swisscontact promotes the concept of micro-leasing as an innovative financial product and acts as a facilitator. It conducts feasibility and market studies, convenes preliminary dialogues with the necessary stakeholders (e.g. banks, farmer groups and training providers), and supports the negotiation of contracts between key microleasing parties.
Microleasing products are now offered through various channels: savings and loan cooperatives, microfinance institutions and commercial banks.
Swiss Foundation for Technical Cooperation
Tel. +41 44 454 17 17
Fax +41 44 454 17 97
E-Mail info@ swisscontact.org