Re-post of “Next Generation Innovation in Microfinance? The Graduation Approach”

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Aude de Montesquiou, a microfinance specialist at CGAP, published a nice summary of the June 9th e-workshop called “Adopting the Graduation Model to Serve the Ultra-Poor.” If you want to learn more about the graduation model, BRAC offers “Immersion and Training Visits” and the next two are this August (week of the 18th and 25th). Please contact Sadna Samaranayake to register.

The e-workshop clearly unpacked how the Graduation Approach works and how microfinance institutions have and can adopt the model. Sadna Samaranayake from BRAC USA took participants through a detailed look at the various components of the program emphasizing the value of community participation in the client selection/ targeting process, the asset transfer component and how clients are trained on generating an income from their newly acquired assets. She spoke about the integrated focus on savings, health care support, and the important role played by village level poverty reduction committees mobilized to help clients with various issues and household shocks after the duration of the 24 month program. BRAC USA believes that, for sustainable MFIs looking to extend their pro-poor missions, the Graduation approach is a great use of donor or discounted funding to help them reach a previously inaccessible poorer client segment—much in line with the “double business case” work conducted by Grameen Foundation.

Read the full post.