Finance Example Projects

Uganda Rural Savings Promotion and Enhancement of Enterprise Development (SPEED)

The objective of Rural SPEED was to deepen and strengthen Uganda’s financial sector in response to this rural sector demand for financial services. Increased provision of financial services should leverage economic activity to complement other Mission programs in rural areas. The resulting increase in economic activity should help Uganda achieve the economic growth rates proposed in PEAP. Rural SPEED is engaged in four key activity areas: 1) savings mobilization; 2) service delivery mechanisms; 3) agriculture finance and 4) new product delivery.

In July 2005, JAA provided a short-term rural finance specialist to complete the financial mapping of the supply chain of three major marketed commodities in Uganda: cotton, maize, and sunflower. These maps will be provided to financial institutions as tools to demystify the risks and costs along the entire commodity supply chain and thus facilitate the introduction of viable and sustainable agriculture finance products primarily in rural areas. Specifically, JAA’s short-term advisor: (1) made field visits to visualize and understand the nature and flow of the supply chain for the three crops in question, which included interviewing and discussing with various entities involved at the various stages of the supply chain for the identified commodities, including inputs and equipment suppliers, producer and production support organizations, processing and marketing entities, and selected financial institutions undertaking agricultural lending; (2) reviewed data on existing production costs under prudent crop husbandry practices and existing market trends; (3) carried out a detailed analysis of the activities and costs involved in the entire commodity supply chain of each of the identified crops; (4) prepared supply chain financial maps in the form of Excel spreadsheets for the respective commodities; (5) developed a narrative outlining specific potential financial risks at each stage/level of the supply chain with proposed possible risk mitigation measures for each of financial risk outlined to accompany the spreadsheets; and (6) presented the draft financial maps at a roundtable for selected financial institutions.

Uganda Support to Feasible Financial Institutions and Capacity-Building Efforts (SUFFICE)

With the objective of refining the strategy and activities proposed for the establishment of a Credit Reference Service (CRS) for the microfinance industry in Uganda, JAA conducted a market analysis and review of the legal and institutional framework; analyzed identified constraints for the establishment of a CRS and recommended feasible solutions; and conducted an appraisal of the two competing project proposals that requested donor support.

Case Studies of Selected Credit Bureaus in Latin America

As a way of increasing the available credit in a particular country, while simultaneously reducing the financial risks and operational costs, international organizations are supporting the use of institutional services. The objective of this project was to guide the emergence of credit information systems, improving the existing ones, and promoting the creation of others where they have not yet emerged in Latin America. JAA conducted a study to identify lessons, crucial conditions for effectiveness, and challenges to overcome for a proper insertion of the microenterprise sector into the credit reporting system. JAA examined in detail the experiences of El Salvador, Peru and Uruguay, producing a comprehensive case study of each of these experiences, and derived best practices in the field, which were later disseminated among practitioners and other development agencies. The studies provided further evidence of the impact that institutional information systems have in reducing financial risks, barriers to entry for other credit suppliers, as well as a reduction of operational costs of financial providers, all of which translates into an increase in the credit supply and other financial services.

Mexico, Agricultural Lending of Fideicomisos Instituidos en Relación con la Agricultura (FIRA)

This study assessed the strategy and the working environment of Fideicomisos Instituidos en Relacion con la Agricultura (FIRA) in order to develop a new strategy for the lending program. This work built on JAA’s institutional strategy developed for FIRA in 1991. JAA surveyed 85 firms and organizations in 12 Mexican states, and gathered performance data on the agriculture and financial sectors. JAA worked closely with FIRA leaders to analyze other financial intermediaries in the market, identify FIRA’s products and alternative marketing channels, and pinpoint FIRA’s advantages when compared with model financial intermediaries in other countries. JAA then developed a new strategy and vision statement, which guides the organization today.

More recently, JAA prepared and delivered a seminar on world trends in agribusiness for FIRA’s senior management. The seminar focused on four areas: technology, markets, support policies, and financial services. After the seminar, JAA facilitated a workshop with FIRA’s senior management to discuss opportunities for Mexico’s rural sector and the impact of current trends on FIRA’s strategy and recommendations for improvements.

Uganda Capital Markets Authority, Establishment of the Stock Exchange

Under an extensive program of technical assistance to the Uganda Capital Markets Authority, JAA assisted in the development of a stock market in Uganda and the creation of a handbook detailing procedures for its establishment and operation. In connection with this work, JAA staff participated in the Regionalization of Southern African Markets Symposium in South Africa and the Workshop of African Stock markets in Egypt.

For information on more projects related to Finance, please view our JAA Corporate Capabilities and Qualifications Document