Study of Microfinance Sector Capacity Building in Sierra Leone

1.3. Strategies to Achieve the Objectives
The first phase of this assignment aimed at identifying strategic gaps in
Sierra Leone’s microfinance sector. On the basis of these strategic gaps,
six strategic objectives were derived for industry capacity building (sec
8.1 above). Under each strategic objective, a number of key desirable
outputs or results have been identified. To attain the five objectives, four
broad strategies have been developed. The following table summarises
the four strategies and the objectives they each address. Appendices 1
(logical framework) and 2 (activity matrix) to this report are vital parts of
the strategy. They expand the strategy and detail it out into an
implementable plan.
TABLE 5: SUMMARY OF THE STRATEGY
PROPOSED STRATEGY
Establish a well staffed capacity
building institution 16 (SMART-
Cap) by Dec 2009, to manage/
coordinate activities
implemented under the different
windows as recommended.
Establish SLAMFI as a strong,
member-based institution 17
Raise funds for all-round
microfinance capacity building,
and for running SMART-Cap
Establish an effective MF
wholesale fund – operated in a
commercially viable and socially
responsive way
TO ADDRESS OBJECTIVE.
1: Increase in geographical/ rural
outreach by MFIs
2: Broadening the product ranges of the
beneficiary institutions
3: Building the internal capacities of MFIs
for sustainable growth.
5: Business and financial awareness of
the population enhanced
4: Industry cohesion and collaboration
promoted
6: Funding for the industry (to support all
the five objectives)
6: Funding for the industry (Growth of
MFI portfolios, for them to extend their
services, attain greater outreach and
grow sustainably).
1.3.1. Establishment of SMART-Cap
In a sense, the most important strategy proposed in this report is the
establishment of SMART-Cap. This will be a program managed
independently by a competitively procured consulting or project
management firm, and whose head reports to a well constituted board
comprising of representatives from the Government, development
partners and some independent technocrats in the microfinance area. It
is vital that both Government and the funding development partners take
equitable part in governing SMART-Cap, and thus the board will function
like a normal corporate board. Strategic board decisions will be reached
by consensus and not a weighted voting procedure.
16 Proposed name: Salone Microfinance And Rural Trades Capacity Enhancement (SMART-
Cap)
17 For advocacy, lobby and information dissemination
page 27