One of the biggest challenges facing the Microfinance industry today is developing financial products and methodologies for very poor or difficult to reach rural populations, reducing their vulnerability and increasing their economic well being. To address these issues, the FWWB- USAID project has set aside a part of the project funds towards supporting and promoting innovations in mF. Through the innovation fund, FWWB seeks to provide timely and flexible funding awards to promote Microfinance innovations that intensify outreach and impact, and serve as an effective tool for overall socio-economic development of the clients and the region as a whole.
Some of the key defining factors for innovations are, unique and “out of ordinary” project design using microfinance interventions, addressing a felt need, scope of using existing linkages or building new ones, scalability, ability to evolve over times to address newer needs, financial viability, impact to be visible in a short time span- pilot project which has a potential for up scaling.
Outline of the Projects Supported for Funding Under Phase II of Innovation Fund
Areca nut Leaf Plate and Bowl Manufacturing Cluster Development, DHRIITI, Assam: Through its Micro Enterprise Development initiative, Dhriti, currently is focusing on the Areca nut Leaf Plate Manufacturing Cluster Development Project. This projectseeks to establish an Areca nut Leaf Plate Manufacturing Cluster in Barpeta District of Assam. In the pilot phase 20 manufacturing units will be set up by SHGs and individuals for which Dhriiti will provide technical, financial, training and marketing support.It is basically aimed at providing self-employment opportunities through production of environment friendly, biodegradable, disposable plates and bowls. In 2005, Dhriiti has established one manufacturing unit and through it has worked on various aspects of this business, right from research and development to marketing. Dhriiti wants to make it a 100 crore industry for rural Assam in years to come. Visit Dhriiti...
Elimination of Child Labour through setting up of Bridge Course Camps, CENTREREDA, TN: This projects seeks to eliminate child labour through combined effort at increasing, income level of parents by providing alternate income earning through micro finance on one hand while mainstreaming rescued child labourers into regular school systems by providing them with a one year education in BCC set up under the project.
Based on their consistent efforts and subsequent fund requirements at the end of Phase I of the project, it has been granted an extension of one more year.
Risk Mitigation and Management – “Sugam Health Fund (SHF)”, SHEPHERD, TN: The project aims to assist the women members at the time of emergency health needs by providing access to funds. Over the years, SHEPHERD has had successful experience in meeting the health needs of women. The organization also felt the need to extend its services to women, children, and husband and reach 10% of the working communities.
Sugam Fund – Health Insurance
SHEPHERD follows a 3P’s approach, namely:
- Prevention 2. Protection 3.Promotion.
Elimination of Child Labour by Empowering Communities to Participate in Education, COVA, Hyderabad: Setting up an alternate stream of education by combining the state and national open school systems so that working children are weaned away from work while they are provided with quality education. The experience of Phase I of the Project has lead to the extension of the Project for the second year.
Weekly Micro Finance Counter in the Role of a Commerce House, FARR, Kalahandi, Orissa: The project looks at providing micro finance services for the tribal populations in the inaccessible areas of the Kalahandi districts so as to help in their economic development. The SHG counter besides providing micro finance services would also help in the tribal community in trading in two of the major commodities in the region- turmeric and forest produce so that they could get a fair price for their products. In addition the project also seeks to address food security and nutrition issues through creation of a grain Bank where members would contribute grains to be used in times of need. The grain bank would also initiate kitchen gardening to help in promotion of nutrition among the tribal population. Considering, the issues aimed to be addressed by the project, it has been granted a sanction period of two years.
All the projects commissioned in Phase I have concluded successfully. However, it is felt necessary to develop capacity of the partners implementing such projects by providing them appropriate Technical Assistance and exposure visits. Also the self-sustainability of the projects should be well thought of. |
