CGAP Lauds ACDI/VOCA-Supported Microfinance Institutions

The Consultative Group to Assist the Poor (CGAP) recognized several microfinance institutions launched and strengthened by ACDI/VOCA for their transparent practices. Each year CGAP recognizes microfinance institutions that apply rigorous operational and financial transparency standards.

Bai Tushum, founded by ACDI/VOCA, USAID and Swiss Caritas in September 2000, was recognized as one of 20 elite recipients of the 2006 CGAP Financial Transparency Award for achieving the highest standards in financial disclosure. CGAP also recognized the Kazakhstan Loan Fund—known now as KazMicroFinance LLC (KMF), MicroInvest, AgroCapital and Xac Bank, all of which were founded with ACDI/VOCA’s support, as 2006 Merit Recipients.

CGAP is a consortium of 33 public and private development agencies working together to expand access to financial services for the poor in developing countries. Its unique membership structure and network of worldwide partners make it a potent convening platform to generate global consensus on standards and norms. It rated 231 applicants from 62 countries on their level of financial disclosures according to international financial reporting standards and CGAP guidelines for microfinance. Besides the soundness and effectiveness that the ratings imply, micro and rural finance institutions’ compliance with international standards increases their ability to attract the commercial capital that allows them to expand their financial services to individuals and businesses with limited access to banks.

“ACDI/VOCA’s financial institution partners have done extraordinarily well in embracing financial transparency and incorporating it into their systems and services, to the ultimate benefit of the people they serve,” ACDI/VOCA Financial Services Specialist Bob Fries said.

ACDI/VOCA adheres to high standards when developing financial institutions, and the sustainability of these institutions is readily apparent in the CGAP accolades. KMF, a longtime leader in microfinance in Central Asia; MicroInvest, which is based in Khujand, Tajikistan, and serves the breadbasket Ferghana Valley; AgroCapital, a partner in Boliva since 1992; and Xac Bank, which originated as an MFI under an ACDI/VOCA program in Mongolia, all incorporate the kind of practices and standards that best serve microenterprises and build confidence in the micro and rural finance industry.

To read more about the CGAP awards, click here. To learn more about ACDI/VOCA’s work in financial services, click here.