I.       INTRODUCTION

It has been widely recognized that a properly designed and implemented microcredit scheme is central to alleviate poverty by providing support for lower-income groups to increase their income. NAM CSSTC has been actively involved in the effort to promote the development and mobilization of micro credit scheme in NAM member countries.

As a follow up to the recommendation of the Expert Group Meeting on “Identification of Major Issues in Eradicating Poverty and Fostering Rapid and Equitable Development in NAM member countries”, convened by NAM CSSTC in April 2001, a group of eminent policy makers and practitioners from different NAM member countries were invited to a workshop held in Jakarta, in June 2002. They have deliberated on the relevant aspects concerning key issues, technical aspects and policy, and came up with a set of recommendations to enhance the sustainability of microfinance institution including people’s involvement in microfinancing scheme.

The Workshop recommended that NAM CSSTC should take the initiative to increase cooperation in the field of comparative studies, training programme in microcredit services and technical assistance. NAM member countries should promote transparency in microcredit services by setting up standard performance, establishing rating agencies and promoting internal control. The Workshop also identified specific actions and recommendations that could be taken by NAM CSSTC to promote and mobilize microfinance practices in NAM member countries to achieve sustainability in the programme.

Based on the recommendation of the workshop, NAM CSSTC planned to hold a series of regional trainings on microcredit scheme. Three training programmes have been successfully conducted. The first one was held in Jakarta, Indonesia in August 2002 for East Asia and the Pacific region, the second one was held in Pretoria, South Africa in October 2002 for Southern Africa Region, and the third one was held in Dhaka, Bangladesh for South and Central Asia Region in March 2003.

Following the three training programmes, NAM CSSTC in cooperation with the Islamic Development Bank (IDB) conducted an Expert Meeting to Formulate Basic Guideline on Microfinance, in Jakarta, Indonesia, in March 2004. The meeting was attended by competent experts from Bangladesh, Brunei Darussalam, Egypt, Indonesia, Iran, Pakistan, Peru, Singapore, South Africa, and Zimbabwe. The output of the expert meeting is a basic guideline that could be used as a reference for training materials.

In order to achieve a comprehensive training programme for all NAM member countries from different regions, NAM CSSTC has planned to collaborate with Japan International Cooperation Agency (JICA) to conduct another joint programme on microfinance specifically for African region. Since the region is huge and varied, a series of trainings have been designed for different groups of African participants, to be conducted in Jakarta annually within 3 (three) year period of 2004/2005 - 2006/2007 fiscal year.

The first batch of the Third Country Training Programme on Microfinance for African Region was successfully conducted on 17 January to 4 February 2005 in Jakarta for class session and in Bali for field session. The 15 participants from 11 African countries attended the training came from Algeria, Gambia, Madagascar, Namibia, Nigeria, Senegal, Sudan, Swaziland, Tanzania, Uganda, and Zambia. The competent training facilitators came from different institutions, namely: BRI (Bank Rakyat Indonesia), BNI (Bank Negara Indonesia), Gema PKM (National Movement for Microfinance Development), BPR (Rural Credit Bank), YWKP (Bali NGO working on Micro Entreprise Development Services for Women), and individual training experts on microfinance development.

The second batch of the Third Country Training Programme on Microfinance for African Region was conducted on 5 - 23 September 2005 in Jakarta for class and field sessions and in Bandung for field session. The 18 participants from 13 African countries attended the training came from Algeria, Egypt, Ethiopia, Kenya, Libya, Madagascar, Namibia, Senegal, Sudan, Tanzania, Tunisia, Uganda, and Zambia. The competent training facilitators came from different institutions, namely: Gema PKM (National Movement for Microfinance Development), Bina Swadaya (Self-Reliance Development Foundation), ASA of Bangladesh, Bank Danamon, Bank Jabar (Regional Bank for West Java and Banten Provinces), PUPUK (Association for Advancement of Small Business), and individual training experts on microfinance development, including the former senior official of Bank Indonesia.