Burundi

Key figures

Started in	2007
Allocated 2007-2008	EUR 493,000 grants
# of MFIs 2008	4
Networks 2008	1

 

In Burundi - where stability and security have been improving since 2003 - the government's commitment to socio-economic development is gradually translating into a more structured and fertile environment for microfinance. That being said, the development of the microfinance sector in Burundi still requires some very basic support for young emerging MFIs, as well as the restructuring of some older microfinance structures.

 

The national microfinance network RIM is Terrafina's main partner. Apart from institutional support to RIM, Terrafina is developing a joint programme with RIM for the introduction of group-based credit systems for MFIs. This microcredit methodology is still largely unknown in Burundi and would enable MFIs to rapidly increase

their outreach among poor women in rural and urban areas.

 

Terrafina also works to identify and capitalize on synergies with the FORCE programme, a partnership of the Burundese government and the Dutch Embassy. It is anticipated that FORCE will participate in the group-lending programme of Terrafina and RIM. Additionally, Terrafina works in close collaboration with World Relief and the Belgian Raiffeisen Foundation (BRS).

 

Additionally, Terrafina Microfinance supports a few selected MFIs in Burundi, among them some credit-led MFIs (Turame, Hope Fund) and some medium-sized cooperatives that operate in specific regions (Cospec, Ucode). 

The support for these MFIs is initially grant-based and is combined with technical support for efforts that include their business planning. Working with the nationwide cooperative network in Burundi (FENACOBU), Terrafina began a baseline diagnosis in 2008/2009 as a starting point for developing a partnership.