DIG is committed to expanding the frontiers of development finance and urban and community services though innovative programs that help poor families and entrepreneurs around the world increase their income and build their asset base. Illustrative of this point, we have utilized our expert program management and advisory services on a variety of successful endeavors. These key programs include:
Detailed Descriptions of these programs are located below:
Urbis: Urban Capacity Learning Lab (2007-2010): The Bill and Melinda Gates Foundation awarded DIG an USD 8 million contract to implement a three-year global learning initiative. Urbis strengthens the capacity of urban poor organizations to increase their influence over the decision-making and planning processes that affect the lives of the urban poor. The focus of Urbis includes advocacy, slum improvement, provision of basic services (water and sanitation), land tenure regularization, and financing for the urban poor, all of which have been identified by local partner organizations. The program’s learning agenda is designed to help practitioners in the field of urban poverty alleviation understand how to amplify the voice of the poor to improve poverty reduction strategies. To that end, the program seeks to answer the following key questions:
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What types of institutions enable the urban poor to increase their ability to influence decision- making and planning processes that affect them?
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What types of institutions respond more effectively to targeted capacity building initiatives?
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What types of capacity building initiatives are most effective to further increase these organizations’ ability to serve their constituencies in a streamlined and cost-effective manner?
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What roles do demographic and political contexts play in the success of capacity building efforts targeting these organizations?
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What are the factors for scale and replication which enable Urbis to be taken to scale or replicated elsewhere?
DIG selected seven cities (Sao Paulo, Phnom Penh, Casablanca, Dhaka, Abidjan, Luanda, and Mombasa), based on the needs of the poor and opportunities to reduce urban poverty. In Casablanca, for example, DIG is working with a pro-poor network to increase slum dweller participation in and understanding of the government of Morocco’s slum eradication program, which is one of the most ambitious national resettlement programs in the world.
In all of the cities, DIG is developing and applying methodologies that support the capacity and strategic growth of non-governmental organizations (NGOs) serving the urban poor. Capacity building efforts include training, technical assistance, study tours, publications, toolkits, and a community of practice website (www.urbisnetwork.com). The Urbis program partners with organizations managed by slum dwellers, NGOs, microfinance institutions (MFIs), private firms and government agencies. These partners are successfully improving the lives of the urban poor and are just a step away from unlocking new opportunities for themselves and for the populations they serve.
Housing Finance for the Poor (HFP) (2006-2009): Funded by the Bill and Melinda Gates Foundation, HFP was a three-year, multi-country contract for USD 6.6 million to test and explore innovations in the field of housing finance for the poor. Through action research, the program endeavored to provide donors, policy makers, and development finance practitioners with a tangible and comprehensive blueprint for prioritizing future investments and efforts toward the promotion of housing finance globally. DIG developed and tested groundbreaking housing finance products and approaches for servicing poor individuals in a variety of development contexts through partnerships with more than a dozen institutions (including MFIs, microfinance banks, apex institutions, and commercial banks).
Through HFP, DIG developed and tested numerous housing finance products, services, and methodologies including but not limited to:
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Mortgage products targeting the poor
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Varying approaches to housing microfinance
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Housing finance subsidies for the poor
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Housing finance in conjunction with slum improvement
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Housing finance in post-emergency settings
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A credit scoring model for housing finance
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Technological innovations related to housing microfinance
Through our comparative analysis of HFP activities in India, Pakistan, Indonesia, South Africa, Morocco, Angola, and Mexico, we assessed key products and potential markets for housing finance for the poor, and conditions needed to enhance its scale and sustainability. To better understand the contexts in which these markets operate, DIG also conducted research on policies and regulations impacting access to housing finance for the poor.
Over the course of the HFP program, DIG provided extensive technical assistance and training to hundreds of financial institutions. Notable successes included: providing extensive technical assistance and training to commercial banks and service companies to design and deliver housing finance products for the poor – both as asset-building and consumption loans; assisting housing microfinance institutions working to achieve scale; linking housing finance to subsidy products; developing innovative financial tools for slum improvement; and launching an on-line
community of practice website to disseminate program findings and serve as a platform for knowledge sharing among partners, donors, and practitioners.
Microfinance Technical Assistance to EMKAN (2009-2010): DIG provides comprehensive on-site technical assistance and senior management to support EMKAN in its goal of becoming one of the largest microfinance institutions in Lebanon. DIG has successfully launched EMKAN’s operations at all levels. This includes developing the 5-year business plan and financial projections as well as performing strategic planning for the launch of the initial branches and initial market analysis, product design and on-going roll-out. DIG has also designed the detailed microfinance and branch level operations manuals and related materials including loan applications, incentive schemes, and MIS technical parameters and report formats. DIG is also leading the training of all Head Office and Branch Management and field- level staff as well the development of a training-of-trainers (TOT) program for all aspects of the nation-wide microfinance field operations.
Economic and Agricultural Development Technical Assistance to EMKAN (2009-2010): At the end of 2009, DIG was contracted to perform technical support for economic development activities in the agricultural sector. DIG is assisting in the development of a country-wide strategy for agricultural economic investment projects, small and medium enterprise (SME) development, and extension services for farmers and producers. DIG is also preparing comprehensive business and financial planning for initial investment projects including a wholesale market and cold-storage facility in northern Lebanon. DIG is also leading areas of a large-scale market demand assessment for the agricultural sector in Northern Lebanon focused on farmers and livestock producers.
Financing Models for Self-help Based Shelter Improvement (2008-2009): In 2008, DIG launched the Financing for Self-help Based Shelter Improvement program in Jordan after being contracted by GTZ to support the adaptation and implementation of the United Nations Relief and Works Agency for Palestine Refugees in the Near East’s (UNRWA) Microcredit and Microfinance program. Under this initiative, DIG is developing new financing tools geared towards shelter improvement in the Palestinian refugee camp, Talbiyeh, a camp in Jordan for residents who do not qualify for UNRWA's Special Hardship Case (SHC). DIG initially reviewed current UNRWA programs and designed the microfinance home improvement market demand study that was conducted in four camps in Jordan (Talbiyeh, Beqa’a, Marka and Jarsh). Leveraging the information garnered in these studies, DIG designed a home improvement lending product and corresponding loan application form. DIG further developed an implementation strategy as a pilot for successive product launches in the West Bank and Gaza, Syria and Lebanon.
Bank Downscaling: Technical Assistance to Union Bank of Nigeria (2009-2010): DIG is implementing a comprehensive technical assistance program for the creation and start-up of a microfinance division within Union Bank of Nigeria, the country’s largest commercial bank. DIG is developing strategic plans, designing products, building human resource capacity, establishing operational systems and delivery mechanisms, and supporting the set up of a tailored MIS system. Working in close collaboration with the bank, DIG is also guiding management and laying the groundwork for the transformation of the microfinance division into a full-fledged microfinance bank.
Boulder Microfinance Training Program (annual): DIG’s President, Franck Daphnis, and Senior Vice President/Managing Director, Dr. Mayada Baydas, deliver courses at the annual Boulder Microfinance Training Program (MFT), a pioneer in intensive “best practice” microfinance training with an alumni network of over 2,500 practitioners from 131 countries. MFT provides an unparalleled learning environment within a rich community of leaders from across the field of microfinance. Courses offered emphasize “best practice” program design issues as well as specific tools to achieve long-term financial sustainability and growth.
DIG President Franck Daphnis has been a member of the MFT faculty for nine years. He teaches the program’s core courses on Microfinance Methodologies and Housing Microfinance. In 2007, Mr. Daphnis also anchored the MFT’s first French-speaking track. Since 2005, DIG Senior Vice President Dr. Mayada Baydas has presented a course in Market Assessments.
In 2008, DIG in cooperation with the MFT delivered a one-week Housing Finance for the Poor training. The DIG curriculum included courses on Housing Microfinance: The State of Practice; Individual Lending and Housing Microfinance Product Delivery; Best Practices in Financing Slum Improvement: Case Studies of Casablanca, Ahmadabad and Sao Paulo; and Mortgages for the Poor: An Overview of Products and the Supporting Infrastructure. The courses were taught by the DIG core team.
Housing Microfinance Training in the Dominican Republic (2009): Agence Française de Développement (AFD) has contracted DIG to deliver a week-long training course on housing microfinance to Dominican microfinance practitioners. The course, presented in Spanish, provides a general mapping of the state of practice for housing finance for the poor as well as challenges facing many practitioners within the field. The training represents the successful exportation of DIG’s training at the Boulder Microfinance Training Program.
Program to Support Arab Center for Agricultural Development (ACAD) to Comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Requirements (2008-2009):
Agence Française de Développement (AFD) contracted DIG to provide ACAD with the systems, tools, and training to respond and comply with AML/CFT requirements in the West Bank and Gaza. Through on-the-ground missions to the West Bank, DIG undertook a comprehensive review of ACAD’s institutional structure, operations, systems and internal controls to assess its compliance with the Palestinian Monetary Authority’s Anti-Money Laundering law. Based on its findings, DIG worked with ACAD to design and implement a training plan to build staff capacity to ensure compliance with AML/CFT standards, and to effectively integrate required changes into ACAD’s existing systems and structures.
Southern Agriculture and Business Recovery (SABR) (2006-2007): In the aftermath of the 2006 conflict between Israel and Hezbollah, the USAID-financed livelihoods recovery SABR program was launched in response to the immediate needs of the heavily damaged agriculture sector - the key source of employment and productivity in southern Lebanon. Due to an existing presence on the ground and long-standing relationships with local municipalities, the SABR program team – comprised of American Near East Refugee Aid (ANERA), DIG, and the Association for the Development of Rural Capacities (ADR) – was able to quickly and effectively respond to the crisis. By rebuilding critical agricultural infrastructure, SABR improved the economic livelihoods of thousands of families and hundreds of communities in Bint Jbeil, Tyre, Nabitya, Saida, and Marjyoun – the locations most directly affected by the bombings. As a result of these activities, SABR accomplished the following:
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Improved the economic livelihoods of 24 communities, 82,582 direct beneficiaries and 315,500 indirect beneficiaries.
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Generated 33,074 hours of direct, immediate employment for cash-strapped households.
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Implemented 34 high-impact infrastructure rehabilitation projects in rural, agriculture dependent communities.
Microfinance Training of Trainers for USAID-Iraq (2009-2010): With funding from USAID through the Tijara Program, DIG was contracted by Louis Berger Group (LBG) to offer a comprehensive training of trainers program, focusing on CGAP courses, to provide real-life training opportunities for microfinance practitioners from Iraq. DIG’s role is to update CGAP’s training courses in both English and Arabic in the subjects of Financial Analysis, Accounting, Operations Risk Management, Product Development, Delinquency Management, and Human Resources Management; assess the 11 TOT candidates’ current knowledge of the modules; train the First Generation of Microfinance Trainers; provide LBG with recommendations on which Iraqis should be certified as trainers; and issue formal certifications for the trainers.
Microfinance Training of Trainers for USAID-Iraq (2006-2007): With funding from USAID through the Izdihar Program, DIG, in partnership with SANABEL, was contracted to offer a comprehensive training of trainers program focusing on both CGAP and non-CGAP courses, and to provide real-life training opportunities for microfinance practitioners from Iraq. This was the first training for leading microfinance institutions in Iraq, and was an important step in developing the sector in the country. While the implementers understood the need to rapidly inject funds into the Iraqi economy, the focus was on achieving this through sound procedures in a transparent manner and through sustainable institutions. DIG and SANABEL offered training in topics such as operational risk management, delinquency, microfinance market assessment, product development, loan assessment, information systems, and strategic marketing. Successful graduates of this program were SANABEL/CGAP certified, and are providing training to microfinance practitioners operating in Iraq through the Private Bankers Institute.
Technical Assistance to Association for Rural Development (2006-2007): DIG provided comprehensive training to southern Lebanon’s Association for the Development of Rural Capacities (ADR) to improve its microfinance service delivery and fine-tune its product offering. DIG worked closely with ADR’s staff in areas including the development of operations systems and methodology, product development, and basic financial planning. In addition, DIG provided monitoring and evaluation support to ensure proper implementation of re-designed policies and methods.
Technical Assistance to Tameer Microfinance Bank (2007-2008): In 2007, DIG secured its second contract with Tameer Microfinance Bank in Pakistan for the provision of technical assistance under the umbrella of the CGAP Retail Advisory Services (RAS) program. In order to further support Tameer’s shift from a typical bank model using outreach and relationship teams to a more traditional MFI model using loan officers, DIG conducted a needs assessment of the organization; designed, carried out, and analyzed a market demand assessment; and provided intensive training and technical assistance. To streamline and update Tameer’s approach to training, DIG developed and delivered six training modules. The first six-day training module
Microfinance Operations and Supervision Training included: an introduction to microfinance; an overview of microfinance products; and instruction on lending methodology, loan origination, selling techniques, loan applications, portfolio follow-up and delinquency management, customer service, and human resources. Subsequent sessions included a
Training-of- Trainers (ToT) workshop,
Risk Credit Committee Training,
MIS Training,
Loan Assessment Training, and
Branch Management and Field Supervision. The latter included instruction on branch structure, staff roles and responsibilities, loan origination, staff supervision and capacity building, monitoring and evaluation, and internal controls.
As part of its on-site technical assistance, DIG assessed and made recommendations on Tameer’s three MIS systems, loan applications, and relationship manual. DIG further reviewed and expanded Tameer’s business plan with updated financial objectives and projections. DIG’s efforts to establish and expand Tameer Microfinance Bank have contributed to its scale: As of December 2008, Tameer boasted an impressive cost per client of USD 30.01 and was fully operationally and financially sustainable. In fact,Tameer is one of the first nationwide, private sector, commercially sustainable MFIs in Pakistan.
Technical Assistance to Tameer Microfinance Bank (2006-2007): Tameer was founded as a USD 10 million national microfinance bank, one of the first nationwide, commercially sustainable, private MFIs in Pakistan dedicated to providing services to the economically active poor. DIG was contracted to serve as the primary technical assistance provider for the set-up of Tameer Bank, and works closely with all levels of Tameer staff in the following areas: (1) developing comprehensive growth and outreach strategy; (2) establishing operational systems and procedures; (3) designing and monitoring the performance of financial products; (4) recruiting and training line staff (loan officers, management); and (5) developing monitoring and evaluation systems. To date, Tameer boasts a loan portfolio of approximately USD 28.5 million and over 85,450 active clients, of which 45,000 are active borrowers.
Youth Investment Strategy for MENA (2005-ongoing): DIG serves as a technical advisor to the ImagineNations Group under a grant from the Gates Foundation to develop innovative youth-focused microfinance and income generation programs with a particular focus on the Middle East/North Africa (MENA) region. DIG is diligently working toward the development of a feasible and coherent blueprint for a Youth Investment Strategy in Morocco. The purpose of this initiative is to provide long-term employment opportunities and access to entrepreneurship training and credit, as appropriate, to young Moroccans. DIG has established a Youth Investment Alliance comprised of the senior advisor to the king and the heads of Morocco’s largest banks and private institutions, as well as leading NGOs.