Microfinance Programme China - Phase A

The objective of the project was to support the upgrading of Chifeng Zhaowuda Women’s Sustainable Development Association (CZWSDA) and eventually transformation into a commercially viable and poverty oriented MFI. This objective includes:

  • Strengthening the institution;
  • Increasing the scale and breadth of outreach to target markets;
  • Achieving operational and financial sustainability.

Services included:

  • Prepare the association for the conversion into a shareholding based for-profit ownership structure.
  • Set up business plan module and train the management.
  • Improve structure, composition and functions of the Board.
  • Set up an independent Internal Audit Department; introduce formal risk management.
  • Enhance IT function in head office and branches.
  • Implement modern MIS and accounting software.
  • Set up separate HR function in head office, develop HR procedures and edit a HR manual.
  • Optimize remuneration systems, including performance-based bonus payments.
  • Increase scale and breadth of outreach (target additional client segments (urban), expand individual lending operations).
  • Carry out in-depth market research among female entrepreneurs in urban areas of Chifeng district.
  • Increase regional expansion (expand branch network, develop LT-marketing strategy).
  • Increase loan size limits, optimize pricing structure, loan term and collateral requirements, optimize eligibility criteria.
  • Review and amend credit policy manual.
  • Develop a client service and marketing guide.
Lead: 
Yes
Region: 
Asia (excl. CIS)
Country: 
China
Project number: 
ADG
Period: 
2010-04-01 to 2013-04-30
Client: 
KfW