Evaluation of Microfinance Services

Assignment Name
Evaluation of Microfinance Services and Potential to Finance Forest Land Restoration (FLR) Investments

Project Description
The purpose of the consultancy was to evaluate how microfinance services recognise the national restoration agenda and can enable individual women and men farmers, groups/cooperatives and communities to invest in FLR or Agroforestry in the pilot landscapes of Gatsibo and Gicumbi districts of Rwanda. The study reviewed the microfinance sector with particular emphasis on a variety of community financing programs and brought to light the opportunities, prospects and challenges of financing forest landscape restoration projects, paying specific attention to gender differences in the microfinance sector.

The activities carried out involve

• Conduct a brief overview of the microfinance sector and the regulatory environment
• Analyze the supply/demand side of the market
• Evaluate the types, structure and delivery mechanisms of microfinance products of the FSPs
• Assess the appropriateness of microfinance products and services to the needs of rural households, farmers
• Identify financial and non-financial barriers that limit access to microfinance for smallholder farmers and community-based groups.
• Analyze community financing and make recommendations
• Assess the business skills and level of financial education of community groups to access and manage loans and identify existing or potential barriers to accessing finance
• Provide recommendations to enhance access to finance for farmers, especially small holders
• Identify financial and non-financial barriers that limit access to microfinance for smallholder farmers and community-based groups.
• Analyze community financing and make recommendations
• Assess the business skills and level of financial education of community groups to access and manage loans and identify existing or potential barriers to accessing finance
• Provide recommendations to enhance access to finance for farmers, especially small holders.