Microfinance institutions needs to focus on sustainability not on profitability

The key messages passed at the last conference on microfinance in Europe held in Brussels last November 2010 provide interesting points of reflection for the future development of the microfinnance industry.

 

In particular, the statement: "Create a more favourable environment for microfinance at national level. Microfinance providers need to balance the aim of sustainability (not profitability) with the objective of social performance" foresees the recommendations made by Muhammed Yunus in his recent article Sacrificing microcredit for megaprofits published on the New York Times.

Successful trade between European Union and developing countries

COLEAP network promotes sustainable horticultural trade solutions, gathering together producers and exporters from the ACP countries and EU importers of fruit, vegetables, flowers and ornamental plants and other partners and companies operating in the horticultural industry. The cooperation programme PIP managed by COLEAP, financed by the European Development Fund is active in a number of  ACP countries. Information on the local directory of  exporters is available on the PIP site hyperlinked in the following map:

Grace Mueni Nyaa, from Kenya,founder of the Kyome Fresh Company Limited participated to the programme and talked about her experience at the European Development Days 2010. The Kenyan company grew from the initial capital base of €2600 to €140.000 in seven years down the line with an average annual sales turnover of €1.6 million! This sample highlights the importance of the private sector as one of the  main drivers for economic growth in developing countries and in particular small and medium enterprises. More information on the role of SME in developing countries are available in the following presentation: