Dubai, UAE - The Citi Foundation today announced a three-year US$11.2 million international grant program to advance the integration of microfinance into the mainstream economies of developing countries. The Citi Network Strengthening Program will increase the ability of 12 major microfinance networks and their members to develop products and services that meet the needs of their clients. In addition, the program aims to enhance the industry's infrastructure, introduce higher standards of management and governance, and promote the vital role of microfinance in providing the poor with access to financial services.
In the Middle East and North Africa (MENA) region, the program will be run in partnership with Sanabel (the Microfinance Network of the Arab Countries), and the program's global partner, the SEEP Network. It will expand the Citi Foundation's long-standing support of the microfinance industry in the region through grants for capital, training and technical assistance. Over the past ten years, the Citi Foundation has committed more than US7.6 million in funding for microfinance-related programs in EMEA.
Mohammed Al-Shroogi, Managing Director for the Middle East and Chief Executive Officer for Citi in the UAE, said: "By strengthening our partnerships with these microfinance organisations, we are helping them play a pivotal role in moving microfinance into mainstream financial services portfolios. Securing a regulatory framework for the microfinance industry will allow it to reach many more people in need."
Essma Ben Hamida, Chairperson of Sanabel's Board of Directors, expressed appreciation to the Citi Foundation and SEEP Network for providing Sanabel with additional expertise and resources to improve the Network's capacity to effectively represent and advocate for its members to relevant governmental bodies and entities who can positively impact the growth and quality of the sector.
Additionally, Bill Tucker, Executive Director, SEEP Network, noted that, "SEEP is privileged to partner with Citi and Sanabel to implement the Citi Network Strengthening Program in [the MENA region. SEEP supports microfinance networks throughout the world, and this important program will provide Sanabel with opportunities to confirm their current goals, enhance their core capabilities, learn from and orient network peers in other countries who are also participating in this program, and, ultimately, improve services to micro-entrepreneurs through its member organizations."
The regions and countries participating in the Citi Network Strengthening Program are: China, India, Philippines; Central America, Ecuador, Mexico; Central and Eastern Europe and the Newly Independent States, Russia, Pakistan, and the Middle East.
The Citi Network Strengthening Program will include:
A comprehensive assessment of the network's capacity to meet the needs of its members;
An in-depth report on the microfinance industry in the respective country or region;
Strategic, business and implementation plans which may include embracing new technologies, advocating for interest rate liberalization, establishment of ratings agencies and credit bureaus, creating local debt and equity ratings funds that raise domestic capital, and developing links between the commercial finance and microfinance sectors.
To date, the Citi Foundation has contributed nearly US$60 million in funding to support 250 microfinance institutions, microfinance networks and microenterprise programs in 55 countries.
In addition, Citi Microfinance, a business unit, supports the microfinance sector through commercial activities that build scale, lower costs and introduce new products. Citi Microfinance currently has business relationships with more than 70 MFIs in over 35 countries in Asia, Latin America, Africa, Eastern Europe and the Middle East, as well as global microfinance networks, specialized fund managers, and investors.
-Ends-
About Citi
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com.
About Citi Foundation
The Citi Foundation is committed to enhancing economic opportunities for underserved individuals and families in the communities where we work throughout the world. Globally, the Citi Foundation is focusing its giving on Microfinance and Microentrepreneurship, which helps individuals become economically self-sufficient; Small and Growing Businesses, leading to economic expansion and job creation; Education, which prepares young people for personal and professional success; Financial Education, which helps individuals make informed financial decisions; and the Environment with a focus on sustainable enterprises that generate jobs and stimulate economic growth while preserving the environment. Additional information can be found at www.citigroupfoundation.org.
About Sanabel, Microfinance Network for the Arab Countries
Sanabel was established in 2002 by 17 founding members from 7 Arab countries as a membership-driven regional network of microfinance institutions in the Arab world. Sanabel's advocates for growth, innovation, best practices & standardization of the microfinance sector in Arab countries. At end of 2007, the Sanabel 56 members from 11 Arab countries were serving an estimated 2.5 million clients representing 90% of the total microfinance clients in the region. Please visit our website at www.sanabelnetwork.org.
About SEEP Network
Since its inception in 1985, the SEEP Network has been a leader in the development of the international microfinance and enterprise development fields. SEEP's 74 institutional members are committed to reducing poverty, working in over 140 countries and reaching more than 25 million microentrepreneurs (70% of whom are women). SEEP convenes key stakeholders to generate, document and share best practices through inclusive and productive dialogue among practitioners. SEEP is committed to connecting microenterprise practitioners in a global learning community. For more information, please visit us at www.seepnetwork.org.
For more information please contact:
Karim Seifeddine
Citi
Tel: +971 4 604 4392
Email: karim.seifeddine@citi.com
© Press Release 2008
