GN-Microfinance LIL (FY98)

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The Micro-finance Capacity-Building Project aims to test a performance-based capacity-building program methodology that will contribute to transforming three financial institutions from donor-financed development projects into sustainable financial institutions that are appropriately regulated by the Central Bank of Guinea. The three micro-finance institutions are Credit Rural (a rural community-based credit scheme), Credit Mutuel (a credit union-type of structure that caters to small businessmen, traders, and civil servants), and Le Programme Integre pour le Developpement de l'Entreprise (PRIDE) (a traditional micro-finance nongovernmental organization focusing on women-owned informal activities and enterprises). There are three components. The first sets up a micro-finance support and monitoring unit which manages a general performance-based institution building program that trains central bank staff in financial and institutional management, and builds model credit unions. The second component consists of specialized assistance for each institution in the form of investments, specialized consulting, and performance-based incentives. Specifically, capacity-building for the staff of the three institutions will entail advisory assistance and short-term consultants, training, and equipment.