Institutional Action Plan Raffle Winner: RIFIDEC

Congratulations to this week’s winner of the Raffle for Institutional Action Plan Submitters:

RIFIDEC, Regroupement des Institutions du Système de Financement Décentralisé du Congo

RIFIDEC supports microfinance in DRC

RIFIDEC, the consortium of decentralized finance system in Congo, was created on October 5, 2010 at the instigation of 201 microfinance institutions in the Democratic Republic of the Congo (DRC), in order to tackle technical and organizational weaknesses of the microfinance sector in DRC, that have been heightened by the global economic crisis and by loss of confidence.

Our work consists of:

  • Training MFI managers, enabling them to professionally manage institutions;
  • Providing MFI managers with technical advice;
  • Promotion of exchange between MFIs;
  • Information and documentation for MFI members;
  • Supporting new institutions in receiving Congo Central Bank agreement;
  • Representing MFI members and defending their interests.

Since 2001, RIFIDEC has successfully trained approximately 300 persons per year in various fields pertaining to MFI management: accounting for MFIs, risk management, savings management, cash flow management, credit recovery techniques, governance of MFIs, etc.

Annually, RIFIDEC supports and provides advice to more than 40 MFIs and coordinates workshops designed to create exchange between MFIs (with an average of 5 workshops per year).

More than 45 MFIs have received the Congo Central Bank agreement thanks to our advice and support for completing a Congo Central Bank application.

As for representation of its members, RIFIDEC has succeeded in improving the legal and regulatory framework of the microfinance sector in DRC through its participation in all meetings organized by the Congo Central Bank to discuss and review draft bills or directions in emission institutions.

Among these laws are,

  • Law 0002 /2002, February 2, 2002 on applicable law clause for savings cooperative societies
  • Instruction N°1, September 23, 2003, as modified on December 18, 2005, from the Central Bank to the MFIs
  • Instruction on regulation of microfinance activities and other instructions

RIFIDEC represents the DRC in Annual Assembly meetings of the African Microfinance Network (AFMIN).

Thanks to RIFIDEC, MFI members have reached out 120,000 clients who benefit of its services.

A reform process is under way which should lead to dividing RIFIDEC in two parts: one part dedicated to mutualist banking institutions and the other one for non-mutualist banking institutions. This reform stems from the Congolese law which makes it compulsory for MFIs to develop network according to their categories.

Our vision is to professionalize and defend interest of MFIs