Microfinance institutions are often isolated initiatives, dependent on an international NGO or network for capital and technical know-how. As a result they cannot make their legimitate interests known. In such a situation it helps to get together with other MFIs and constitute national associations, regardless of differences in client approaches and delivery technique.

In Madagascar, where microfinance started in the late eighties and early nineties, several donors helped launch MFIs, over 80% of the mutual type. In 1996, with the adoption of law 96-020, the mutual microfinance sector became regulated and MFIs were required to join an association. According to the law-makers, the association should promote collaboration between  savings and credit organizations in rural areas, provide technical support in the creation of new mutual financial institutions and represent and defend the mutualist movement.

With funding by the German government, the ILO Social Finance Programme helped establish APIFM (Association professionelle des Institutions Financières Mutualistes), the professional association in March 1998. Within a short time, five mutual financial institutions became members: ADEFI, AECA, CECAM, OTIV and TIAVO. In 1998, the initial membership was 47,472 members and, by the end of 2002, the total reached 140,157.  Membership increases on average 25% per year.

Over time, member MFIs began to see the association as a powerful tool for representation, lobbying, developing internal and external dialogues, training and organizing events and exchange visits.

The professional association has now reached a stage where it can financially support its basic structure through member fees, service provisions against payment and donor funding.

For more information, please contact Coumba Diop-Boario.