Expanding agencies into rural areas
By the end of 2023, the 16 member institutions of the Professional Association of Microfinance Institutions (APIMF) had a client base estimated at 2.45 million people.
According to the association, the country’s economy received funding amounting to 1,050 billion ariary (220 million USD). The APIMF’s vice president noted that while the coverage of its members extended to 102 districts, only one district remains uncovered by microfinance institutions (MFIs). This support is part of the actions undertaken within the framework of the Madagascar Financial Inclusion Project (PIFM), which was completed in December 2022.
The goal is to help MFIs digitize and expand their branches into rural areas underserved by traditional financial services. According to the Ministry of Economy and Finance (MEF), these initiatives aim to enhance services directly focused on customers, making it easier to access local financial products and services. They also plan to create a shared Management Information System (MIS) for MFIs, enabling them to adapt to future national payment changes.
Ladislas Adrien Rakotondrazaka, national coordinator of the PIC project, mentioned ongoing discussions regarding the provision of software for these MFIs. The objective is to reduce costs for these MFIs, allowing them to offer more affordable services not only to individuals but also to businesses in areas not covered by banks.
