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Authors: Douglas P. Daura & Nihar Jangle, GIZ. On March 12th, e-MFP was pleased to launch the European Microfinance Award (EMA) 2025  on ‘Building Resilience through Inclusive Insurance’. This is the 16th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg (InFiNe.lu), in cooperation with the European Investment Bank. This year, e-MFP is also delighted to welcome as a strategic partner our friends at Microinsurance Network (MiN). In this 6th piece in the series, Nihar Jangle and Douglas Daura discuss the risks faced by Zambian smallholder farmers, and how their resilience to shocks can be mitigated by weather index-based crop insurance embedded into contract farming models. For Zambia’s smallholder farmers, the risks of farming have always been high. But in recent years, the stakes have risen dramatically. Climate change has brought erratic rainfall, extended dry spells, and sudden floods – threatening not just harvests but livelihoods. For many rural households, a single bad season can mean selling assets, pulling children out of school, or going hungry.   Since 2017, GIZ – on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) – has been supporting innovative models to address this challenge, most notably by embedding weather index-based crop insurance   into Zambia’s agricultural value chains . The most promising of these models relies on contract farming as a delivery mechanism – an approach that strengthens both financial protection and production systems. What Is Contract Farming? Contract farming  is a formalised partnership between smallholder farmers and agribusinesses, typically structured around forward agreements. These contracts specify the type and quantity of crops the farmer will produce and deliver, while the buyer – usually an off-taker – commits to purchasing the harvest, often at a predetermined or market-linked price.   In many cases, buyers also provide so-called embedded services  to farmers at the start of the season – such as seeds, fertilizer, crop protection products, technical advice, and credit. These inputs are typically repaid at harvest through deductions from the farmer’s sales proceeds. The arrangement helps smallholders access essential inputs and reliable markets, while buyers benefit from a more consistent, higher-quality supply. In Zambia’s cotton sector in particular, contract farming has become a key model for structuring smallholder production. It also provides a natural entry point for bundling financial services such as insurance. Embedding Insurance into Contract Farming A leading example is Louis Dreyfus Company (LDC) Zambia , a contract farming operator working with thousands of smallholder cotton producers. In a partnership with GIZ and local insurers, LDC integrated weather index-based crop insurance  into its input support package. The insurance covered drought and excessive rainfall – especially during the critical germination and flowering phases. Rather than relying on costly, case-by-case loss assessments, payouts were triggered automatically when rainfall data (based on remote sensing) crossed pre-agreed thresholds. This made the model efficient, scalable, and transparent.   To remove financial barriers, LDC Zambia pre-financed the insurance premiums , recovering the cost after harvest. When a payout was triggered, LDC deducted any outstanding input loans and passed the remainder to the farmer. This ensured that farmers weren’t left with debt after a failed season – and could re-invest in the next one.   Over time, the bundled product has grown to include life insurance , providing a modest funeral benefit in the event of a farmer’s/beneficiary’s death. Initially met with scepticism, this addition has proven valuable and welcomed by farming families. It reinforced trust between farmers and LDC and strengthened the appeal of the overall package.   Field feedback showed clear benefits. Farmers who were insured were more likely to take up inputs, expand their cotton acreage, and deliver their harvests to LDC, rather than side-selling. For LDC, this meant reduced default risk, improved supply chain stability, and stronger farmer loyalty – a win-win for both sides. Beyond Contract Farming: Engaging Other Aggregators While contract farming offers an effective distribution model, it is not the only one. GIZ also supported insurance delivery through a range of aggregators:   Microfinance Institutions (MFIs):  VisionFund Zambia bundled weather index and livestock insurance with loans. The premium was integrated into the loan, and payouts could help clients repay in bad seasons – protecting both borrower and lender. Seed Companies:  Firms like Pioneer and Monsanto have offered weather insurance bundled with maize seed packs. This approach protected against early-season risks such as drought during germination and served as a marketing incentive. Cooperatives and SACCOs:  Community-based savings and credit organizations were also being explored as channels for distributing insurance and climate information, particularly in areas where contract farming was less prevalent.   Across all these models, a common insight has emerged: aggregation is essential . Whether through off-takers, lenders, or farmer groups, trusted intermediaries reduce transaction costs, improve communication, and drive uptake. Lessons Learned and Looking Ahead After nearly a decade of experimentation and implementation, a number of key takeaways stand out:   Pre-financing premiums  – by aggregators – solves a major access barrier for low-income farmers. Bundling insurance with existing services  (inputs, credit, training) improves value for money and makes insurance more relevant to farmers’ real needs. Farmer education and trust-building  are essential. Sensitisation through printed materials, local language campaigns, mobile messaging, and face-to-face interaction all matter. Insurer capacity  remains a bottleneck. Long-term technical assistance and skills transfer are needed to build local expertise in product design, pricing, and claims management. Data and digital tools  offer untapped potential for improving product design, reducing basis risk, and reaching scale.   So far, GIZ-supported schemes have reached thousands of farmers across Zambia through multiple partners. Training materials and awareness campaigns in English, Tonga, Bemba, and Nyanja have broadened understanding and demand. But the real opportunity lies ahead: scaling what works, refining what doesn’t, and embedding these tools more deeply into Zambia’s financial and agricultural systems.   As climate shocks become more frequent and severe, weather index-based insurance – when distributed through trusted, farmer-centric models like contract farming – offers a proven path to strengthening resilience, reducing vulnerability, and building a more secure future for rural households.    This blog reflects the experiences of projects implemented by GIZ and commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ). For more information, contact nihar.jangle@giz.de  or douglas.daura@giz.de Photos: GIZ About the Authors: Dr. Nihar Jangle has 15 years of experience in Climate and Disaster Risk Finance and Insurance (CDRFI), with a proven track record of successful implementations across multiple countries.   Nihar Jangle has been with GIZ Germany since 2017. He is currently heading the Risk Finance & Insurance Team at GIZ, implementing CDRFI solutions on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) in partner countries, in addition to advising the ministry.   From 2010 to 2017, Nihar Jangle was Director of the Climate Change Program at the Micro Insurance Academy in India, heading a multi-year initiative on inclusive insurance solutions for climate-related risks, including health, crop, livestock and natural catastrophes. This work experience led to several publications in peer-reviewed journals. Nihar’s work was recognized with the 2016 Shin Research Excellence Award bestowed by the Geneva Association and the International Insurance Society (IIS).   Nihar Jangle holds a doctorate degree in mathematics from Free University Berlin and served as Visiting Scientist at Brown University, USA, for two years. After finishing his degree, he worked with a consulting firm in Germany’s financial sector, focusing on risk management for major German banks.   Douglas P. Daura   is a seasoned agricultural finance and climate risk insurance expert with over a decade of experience driving inclusive solutions for smallholder farmers in Zambia. As Senior Advisor for Agricultural Finance & Insurance under GIZ’s AgFIN project, where he supported financial institutions, agribusinesses, and government partners in designing and scaling innovative financial products tailored to the needs of rural communities. Douglas played a pivotal role in the implementation of the Climate Risk Insurance and Information in Zambia (CRIIZ) project, which expanded weather index-based crop insurance across Zambia’s agricultural value chains. His leadership contributed to the delivery of over 30,000 climate risk insurance policies—30% of them for women—and the integration of climate risk insurance into contract farming arrangements with companies like Louis Dreyfus Company Zambia ( develoPPP.de project). His work helped ensure farmers had access not just to insurance, but also to climate information, financial training, and input services, strengthening both resilience and productivity. Douglas is currently working under Climate Resilient Agri-Food systems (CREATE) under the private sector development - project co-financed by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ). Implementing the ENTERPRISE Zambia 2.0   Douglas holds a BSc in Agricultural Sciences from the University of Zambia and brings a strong background in agronomy, insurance underwriting, and stakeholder engagement. He is passionate about developing scalable, farmer-centric insurance models and continues to drive efforts that embed climate risk tools into Zambia’s broader development and finance systems.

Author: Craig Churchill, ILO. On March 12th, e-MFP was pleased to launch the European Microfinance Award (EMA) 2025  on ‘Building Resilience through Inclusive Insurance’. This is the 16th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg (InFiNe.lu), in cooperation with the European Investment Bank. This year, e-MFP is also delighted to welcome as a strategic partner our friends at Microinsurance Network (MiN). In this 5th piece in a series of blogs that we’ll be running throughout the year on this topic, Craig Churchill, head of ILO’s Impact Insurance Facility, argues that driving insurance uptake must be secondary to its real purpose – building resilience – and that this can really only be achieved with a holistic approach, leaning on integrated solutions that bundle insurance with other products.   Farmers participating in the National Agriculture Insurance Scheme in Rwanda meet with representatives from the insurer Radiant Yacu. When I first heard that the theme for this year’s European Microfinance Award was insurance, I must admit that I had mixed feelings. One the plus side, I have been working on this topic since the last century, so it is nice that is finally getting some recognition. Often insurance is an afterthought, only surfacing in the financial inclusion conversation once discussions about savings and credit have been exhausted. So for insurance to be the focus of this prestigious award, it somehow validates the work that the International Labour Organization  has been doing on inclusive insurance over the years. My enthusiasm was tempered somewhat, however, because I would have preferred for the emphasis to be on the first half of the award title – building resilience.  This is really the objective, isn’t it? The development community is talking about insurance not because we want more low-income households to be paying premiums, but because we want them to be better protected. Insurance can certainly contribute to this agenda but so do other financial and non-financial services. I think the real excitement, and impact, occurs when we bring together a toolbox of services to solve specific problems. The European Microfinance Award did that in 2019 when it looked at how the financial inclusion community was innovating to help solve the climate change crisis . It did it again in 2021 when it considered how financial service providers (FSPs) could contribute to improved health outcomes . In both cases it was clear that insurance can play an important role, but it is just one tool in the toolbox. So while I am keen to be talking about insurance, and to learn about the exciting innovations that are occurring across the globe, I am even keener to understand how they are building resilience and reducing the vulnerability of the working poor. To do so, I believe FSPs need to take a holistic view of their clients’ risk management needs and design a package of financial and non-financial services that can address those needs appropriately. Based on some work  that the ILO has been undertaking in recent years, I want to highlight a few of the lessons that we have been learning.   Anchoring The Solution On Savings The starting point with any effort to provide protection is to ensure clients are enrolled in the relevant social security schemes. Then financial services can fill in any gaps around what is provided by the government. We often see this with national health insurance schemes that cover much of the treatment costs, and then inclusive insurance being used to provide per diem benefits through a hospital cash product, or to cover co-pay costs or pharmaceuticals. To fill these gaps, FSPs could offer the various elements – savings, insurance, emergency loans and financial education – as separate, standalone elements. Alternatively, they could explore ways of integrating them to provide a more comprehensive risk management solution. This approach may facilitate marketing and administration for the FSP, while providing solutions that enable low-income households to rely on low and medium stress coping mechanisms. Building integrated solutions relies on using savings as an anchor, which has three main advantages over credit as the entry point. First, most people need savings and hence savings-linked products can appeal to a wider pool of clients, not just the subset of people who borrow money. Second, savings products typically have a longer duration, providing a platform for FSPs to offer more permanent protection and build customer loyalty. If loans were the anchor, what would happen when the loan term ends if the client is not ready to re-enrol immediately? Third, taking a loan is risky for borrowers to begin with, so it is incongruent to think that a risk-management solution could be built on a risk-taking activity. Hence, combining products that allow households to turn assets or equity into cash may be an appealing solution. For example, rather than drawing down on a contractual savings account during a time of need, people may prefer to borrow using their accumulated savings as collateral. Bundling an emergency loan product with a contractual savings account allows clients to cover small expenses and smooth consumption, although these need to be managed carefully to avoid over-indebtedness.   Where Does Insurance Fit In? Insurance then fits into the discussion to cover risks resulting in large expenses that cannot easily be covered out of savings and emergency loans. The death of a breadwinner certainly falls into this category, as do major disruptions to livelihoods, perhaps caused by droughts or floods, fire or theft. The business model for stand-alone inclusive insurance products can be challenging, which is why insurance is often bundled with another financial service – with loans, savings accounts or payments. As mentioned above, in the interests of building resilience, linking insurance to savings is likely to be the most impactful. Focus group discussion held in Abidjan, Côte d’Ivoire, with potential inclusive insurance clients, as part of the Impact Insurance Facility’s training on 'Market Research for Inclusive Insurance.' But bundling insurance comes with its own challenges that need to be addressed . Since people are often not seeking out insurance but rather are getting it along with their savings account (or their loan, or their agricultural inputs, or their cell phone minutes), they may forget that they have it. So when insurance is bundled, extra effort is required to ensure that the persons covered (or their beneficiaries) know what is covered and know how to claim.   Design Considerations For Integrated Solutions The process of providing integrated risk management support to low-income households, small businesses and the working poor is not easy. The following are some design considerations that FSPs need to keep in mind when offering such solutions: Mix and match . Financial institutions should complement what is available from the government and from social service providers with financial services that manage risks. The starting point is to enrol in whatever government programmes are available and targeted at the population in question. Savings partnerships . Not all financial institutions are permitted to mobilise deposits. For example, to offer integrated risk management solutions, microcredit NGOs will need to partner with organizations that can take savings, like banks or mobile network operators (MNOs). When considering prospective partners, it is essential to assess the levels of service that they are willing and able to provide. If the process of making deposits is not seamless, then it will be difficult for low-income households to amass any significant sums. Plus, if the partnership results in a negative customer experience, the FSP that is the face of the savings solution to the customer will suffer the consequences. Carrots and sticks . It is quite natural that the preparation for risk management does not always get the most attention in a household’s financial planning. To ensure that the preparation activities are sufficiently emphasized, it is important to offer a heavy dose of incentives to reward good behaviours of making regular deposits and signing up for insurance. Similarly, to prevent the use of funds for purposes other than risk management, early withdrawal penalties may also be in order. Staff implications . The introduction of new services might significantly impact the job descriptions and workload of frontline staff. If staff perceive this as extra work without sufficient compensation, it will be doomed to fail. Similarly, if staff incentives are tied to loans without any key performance indicators for savings and insurance, then the field staff will naturally focus their attention on the lending activities at the expense of effective risk management solutions. Digital solutions . The business case for small deposits and small-ticket insurance policies can be challenging in an all-cash economy. But the emergence of mobile money and the digitization of back-end processes create new opportunities to reach scale in a cost-efficient manner. Digital technology can be leveraged to educate clients about the integrated solutions, enable cross-selling through direct sales to customers, facilitate payments and reduce transaction costs.   The financial inclusion community should be laser-focused on developing and testing solutions that build the resilience of low-income households, smallholder farmers, microentrepreneurs and the like. By combining savings, credit and insurance, along with relevant non-financial services, FSPs can offer solutions that reduce the vulnerability of their clients. And if their clients are more resilient, they will be as well. Photos: ILO   About the Author: Craig Churchill is chief of the Social Finance Programme and the team leader of ILO's Impact Insurance Facility. He has more than two decades of microfinance experience in both developed and developing countries. In his current position he focuses on the potential of financial services and policies to achieve social objectives. He serves on the governing board of the Access to Insurance Initiative and was the founding chair of the Microinsurance Network.

The CoopStar initiative, and other reflections from the BRS Microfinance Lunch Break Author: Bart Speelman, BRS. In the third in a new blog series to celebrate the International Year of Cooperatives, Bart Speelman from BRS presents selected insights from the recent Microfinance Lunch Break event in March, part of BRS’ own work for the International Year of Cooperatives, including updates to the pan-African CoopStar project. Celebrating the International Year of Cooperatives in 2025, BRS hosted a special edition of its Microfinance Lunch Break series on March 26th. The event brought together leading voices in cooperative development to explore a critical question: Are cooperatives fit for purpose in accelerating a sustainable transition in Africa? The session featured Professor Patrick Develtere  of the University of Leuven, a renowned scholar on international cooperation, and Joseph Njuguna , Director of Policy at the International Cooperative Alliance (ICA). Together, they offered a compelling portrait of how African cooperatives are not only evolving but increasingly pivotal to achieving the Sustainable Development Goals (SDGs).   Defining the Cooperative Identity The discussion began with a fundamental question: What is a cooperative?  The speakers defined cooperatives as autonomous associations of people who voluntarily unite to meet common economic, social, and cultural needs  through a jointly owned and democratically governed enterprise. This definition, rooted in values of self-help, democracy, equality, and solidarity, is what gives cooperatives their unique identity. Professor Develtere revisited themes from the landmark 2008 study “Cooperating Out of Poverty: The Renaissance of the African Cooperative Movement,”  highlighting how cooperatives have historically empowered communities to drive their own development. Joseph Njuguna emphasized that cooperatives are not just economic units; they are people-centered organizations  that foster local resilience and inclusive participation.   The CoopStar Study: Updating the African Cooperative Narrative Central to the event was the presentation of preliminary insights from the ongoing CoopStar project ( Cooperatives for Sustainable Transformation in Africa ), a comprehensive update to the earlier research. Covering 20 African countries, this ambitious study is assessing how cooperatives can support the transition to a green, circular, and sustainable economy, particularly in light of climate change, economic inequality, and growing development pressures. Key Highlights from CoopStar Explosive Growth : Africa is home to an estimated 500,000 to 600,000 active cooperatives with over 100 million members, representing roughly 14% of the continent’s population. This makes cooperatives a potentially transformative force across multiple sectors. Diversifying Sectors : Traditionally strong in agriculture and financial services, cooperatives are now branching into healthcare (Uganda), ecotourism and transport (Cabo Verde and Rwanda), mining (DR Congo), housing (Senegal), manufacturing (Morocco and Egypt), and waste management (South Africa). Kenya’s Example : Kenya stands out for its dynamic cooperative ecosystem, supported by a dedicated government ministry, the Cooperative University of Kenya, and digital tools such as M-Pesa. Cooperatives in Kenya contribute a remarkable 30–35% to national GDP. Innovation in Senegal : The U-IMCEC cooperative in Senegal connects rural communities with agricultural producers, and its agrifinance unit is actively promoting sustainable practices like reducing pesticide use and improving water efficiency.   The Evolving Landscape: Strengths and Challenges The presenters were clear-eyed about both the promise and limitations  of cooperatives on the continent. The CoopStar study sheds light on several trends shaping the movement today: Enabling Environments and Legal Reforms Many African countries are modernizing their legal frameworks to support cooperative growth. These reforms enhance transparency, governance, and accountability, enabling cooperatives to scale their impact. A New Generation of Leaders A wave of young, dynamic, and increasingly female leadership is revitalizing the cooperative sector. These leaders bring entrepreneurial energy and innovation to traditionally conservative institutions. Towards Self-Reliance One of the most striking findings is the rise of self-financing cooperatives, which are increasingly using local resources and community investment rather than relying on government subsidies or foreign aid. Cross-Sectoral collaboration There is a notable uptick in cooperation among cooperatives and partnerships with other social economy actors. This interconnectivity is helping build ecosystems that are capable of tackling complex social and environmental issues.   Sustainability: From Buzzword to Practice Sustainability was the cornerstone of the event. African cooperatives are increasingly aligning their missions with environmental stewardship , economic inclusion, and community resilience. The shift from rhetoric to action is visible across sectors: Climate Change Mitigation : Cooperatives are implementing reforestation projects, promoting climate-smart agriculture, and introducing drought-resistant crop varieties. Circular Economy Models : Waste management cooperatives are pioneering new ways to handle recycling and composting, reducing pollution and generating employment. Digital Innovation : Ghana’s Asusu cooperative software is an example of how digital platforms are supporting cooperative governance and service delivery. Self-Critique and Accountability : Cooperatives are increasingly aware of their own environmental footprints and are adopting internal reforms to reduce harm and model sustainable practices.   Building Political Influence Despite their achievements, cooperatives still struggle to gain political visibility . As Professor Develtere noted, while they are increasingly vocal, cooperatives are not yet at the center of policymaking discussions. Joseph Njuguna emphasized the importance of grassroots mobilization  to influence policy from the bottom up, ensuring that cooperative priorities are reflected in national and regional development plans.   What’s Next? From Research to Action The final part of the webinar looked toward the future. Once the full CoopStar study is published in summer 2025, the findings will inform a series of national dialogues in participating countries. These forums will engage cooperative members, government stakeholders, and civil society in shaping the role of cooperatives in sustainability transitions. A broader international debate is also planned, advocating for policies that reflect cooperative realities and scale up successful models across the continent.   BRS's Commitment and Upcoming Events As a key actor in the cooperative microfinance landscape, BRS is actively supporting these conversations. With strong partnerships in Senegal and Uganda, BRS is facilitating exchanges of knowledge and innovation between cooperatives in Africa and Europe. In October, these themes will take center stage at the African Microfinance Week in Nairobi, where BRS’s partners will present their experiences. Later, at e-MFP’s annual event in November in Luxembourg, the dialogue will continue, ensuring that the momentum around cooperatives and sustainability is sustained throughout the International Year of Cooperatives.   Conclusion: Cooperatives Doing Together What They Can’t Do Alone Echoing Friedrich Wilhelm Raiffeisen’s timeless maxim — “Let’s do together what we are too small to do alone”  — the webinar made it clear that cooperatives are not just fit for purpose, but essential to Africa’s sustainable future. They represent a people-powered model  of development that is local, inclusive, and adaptive. In a time of global uncertainty, the cooperative movement is showing that grassroots action, democratic governance, and shared ownership  can be powerful tools for navigating the challenges of climate change, inequality, and economic resilience. As the CoopStar study gains traction and national dialogues unfold, the cooperative movement in Africa stands ready to be a cornerstone of transformation — by the people, for the people. About the Author: Bart Speelman is program co-ordinator agri-finance at BRS.  He is following up on the cooperation, coaching and advice of BRS-volunteers from KBC Bank in Belgium with BRS’s MFI-partners in Senegal, Ethiopia, Guinee and Burkina Faso.  In his role he also co-ordinates inspirational agrifinance workshops where BRS brings together Microfinance Institutions, Impact Investors and Providers of Technical Assistance to MFI’s and Farmers Organisations to share experiences with one another, learn from each other and to actively engage with customers in the field. Prior to this, he worked as a project and program co-ordinator at KBC Bank for 20 years during which he also was volunteering for BRS and he started his career setting up savings and credit cooperatives when working for Trias in Tanzania.

Authors: Albert Dah & Armel Katinan Ouattara In the second in a new blog series to celebrate the International Year of Cooperatives, Armel Ouattara and Albert Dah from Advans Côte d'Ivoire explain the roots of Advans CI’s work with cooperatives, the rationale and consequences of winning the European Microfinance Award 2018, and how Advans CI has diversified its work with cooperatives via many new products and initiatives that have been introduced in the seven years since.   In 2018, Advans Côte d’Ivoire won the European Microfinance Award (EMA2018) on “Financial Inclusion through Technology” for its mobile money solutions to serve cocoa farmers and promote their children's school enrolment. Seven years later, new challenges have arisen, but Advans has also innovated and expanded its scope of action to meet the needs of all individuals within the cooperative ecosystem.   Addressing Cooperatives’ Needs From The Start Advans Côte d'Ivoire is an Ivorian MFI offering loans, savings, and payment services. Since our beginnings in 2012, we have worked with cocoa cooperatives, which play a key role in rural Côte d’Ivoire. An agricultural cooperative enables producers to pool resources, access markets, and manage price risks . In areas with limited access to capital and strong social ties, cooperatives are significant players in the financial inclusion sector. For years, in the absence of committed financial institutions, cooperatives have worked to ensure the resilience of their producers by granting social credits, safeguarding producers' cash in their vaults, and distributing inputs and motorcycles. Early on, Advans recognised cooperatives as the entry point for producers' financial services , becoming the first Ivorian MFI to trust cooperatives and design products specifically for them. Advans Côte d’Ivoire began by offering in-kind loans to cocoa farmers working in cooperatives under a solidarity-based model . We provide funding for purchasing fungicides, insecticides, fertilizers, treatment equipment (such as atomizers and sprayers), and protective gear. We pay the input suppliers directly on behalf of the farmers, and through these grouped orders, the farmers benefit from reduced prices. The farmers are then required to repay the loan to Advans through their cooperative. In 2024, nearly 50,000 cocoa producers took out this loan.   The European Microfinance Award 2018 Following its strategy to enhance the financial inclusion of cooperative workers, Advans continued to develop new products. In 2018, it won the European Microfinance Award for its understanding of the needs of Ivorian cocoa farmers and its tailored technological solutions addressing the challenges of traceability and security when cooperatives make payments to cocoa farmers. The digital wallet service developed by Advans is particularly well-suited for cooperative workers living far from banks and facing difficulties accessing formal financial services. This digital savings and payment solution connects each producer’s Advans account to a Mobile Money account and facilitates wallet-to-bank and bank-to-wallet transfer services. Therefore, it has allowed cooperatives to make digital payments to farmers for their harvests and enabled producers to easily save and withdraw money from their accounts, reducing the risks associated with handling cash. Currently, over 130,000 producers have access to these digital transaction services through their savings accounts. As the irregular cash flow of farmers led to low school enrolment rates, we were also recognised for offering small digital school loans based on an algorithm reflecting the farmers’ cash flow , enabling them to finance their children's school fees on time. Indeed, the back-to-school season coincides with the lean season for cocoa farmers. As they often have limited funds during this period, many producers wait for the first cocoa deliveries in October or November to enrol their children in school. Since 2018, the number of cooperatives taking digital school loans has doubled: nearly 20,000 loans were granted to cocoa producers, totalling 2.7 billion FCFA (4.71 million USD), facilitating an uninterrupted education for even more children. We also provide life insurance for cooperative workers and their families . In partnership with an insurance company, the premium is directly debited from the producer's Advans account, and the reimbursement process is adapted to the challenges of officially reporting claims and deaths in remote rural areas. Advans also offers an education insurance policy that covers their children's school fees  in the event of the producer’s death to ensure the continuity of their education. Through these initiatives, Advans CI has significantly contributed to the financial resilience of farmers by transitioning from informal cooperative practices to formal digital financial services.   New Projects for Cooperatives Following the EMA2018 success, Advans CI continues to co-design, with over 500 partner cooperatives, a tailored offer that meets the needs of cocoa farmers. Advans provides training and education to cocoa farmers  to empower them in household budget management, savings, loans, risk management, insurance, investment, financial institutions, and digital financial services for both personal and agricultural development. For example, in 2024, more than 10,000 producers were trained on the functioning, management, and repayment of input credit. A sensitisation program on climate change and its agricultural consequences  has also been carried out for producers. To increase the traceability, security, and efficiency of payments between the cooperative and the cocoa farmers, Advans has developed a digital payment system for certification premiums . The cooperative sends Advans the bonus amount to be paid for each producer, and Advans is responsible for transferring the money from the cooperative's account to each producer's account. This boosts producers' savings and assists them in spreading their income throughout the year. In 2024, to further address the needs of stakeholders in the cocoa sector, Advans introduced a loan to help farmers purchase a motorcycle or tricycle for transporting cocoa pods . This product aims to strengthen smallholder farmers’ capacity for harvest and delivery, enabling them to develop a transport activity that generates additional income while reducing costs paid by the cooperatives, which often cover expenses for motorcycles and tricycles. The repayment schedule is tailored to the specifics of the cocoa production season, as farmers have less cash to repay during the two lean periods when their income diminishes. At the cooperative level, a truck loan has also been established to ensure the transport and delivery of cocoa by cooperatives. In addition to these services, Advans has established a network of third-party agents known as “Advans Points” to improve the accessibility of financial services in remote communities . Advans Points are operated by partners located in cooperatives or small businesses, facilitating access to Advans services for customers far from branches. At an Advans Point, customers can make deposits and withdrawals directly from an Advans account and perform simple transactions (such as opening or reactivating an account, changing a telephone number, etc.). Among the 60 points opened in the country, one-third are currently located in cooperatives. By understanding the challenges faced by cocoa cooperatives, Advans designs more tailored and suitable credit solutions to address the producers’ needs while considering the broader cooperative community.   How Advans’ Products Have Diversified to Target the Entire Community  Enhancing the living standards of cocoa-producing households also requires supporting crop diversification and increasing women's incomes . To achieve this goal, Advans works with Village Savings and Loan Associations (VSLAs), which share many structural similarities with cooperatives and serve as a strategic mechanism for economic empowerment. The VSLA model establishes self-managed and self-capitalised savings groups that use members' savings to lend to each other. VSLAs typically consist of 15 to 30 members, with an average of 78% being women, living in urban or rural areas, including very remote locations. This model has expanded to 77 countries, involving over 20 million active participants worldwide. To secure their savings and enable larger loans, Advans CI has developed products and services dedicated to VSLA members , particularly women in cocoa-growing communities. VSLAs can open savings accounts to protect members’ savings. Additionally, VLSA members can open personal accounts and utilize Mobile Money solutions to deposit and withdraw funds, helping to bridge the gender gap in access to financial services. Advans also provides life insurance and loans to VLSAs . The members contribute to the insurance through the VLSA’s Advans account, and payment is received in cases of hospitalisation or death. As for the loan, it is granted to the village association as a legal entity, which then uses the funds to finance individual members’ income-generating activities or support a collective activity, such as farming or retail. Over the past three years, the number of VLSAs banked by Advans has doubled, and in 2024, more than 200 loans were issued to VLSAs. In 2024, a new financial product was developed to supply electrical devices to VLSA women  to enhance their income-generating activities, including refrigerators, fans, and blenders. Advans pays suppliers directly on behalf of these women, who are then required to repay the loan to Advans through their VLSA. Advans continues to innovate and develop products aimed at supporting the entire ecosystem surrounding cooperatives: cocoa producers through mobile money services, motorcycle and input credit; their wives through credit to VSLAs; and their children through education credit. As new challenges arise due to climate change, Advans CI is also developing new products to assist cooperatives in tackling these issues. We look forward to sharing more on this in the future, and we’re pleased to take part in e-MFP’s programme supporting the UN Year of Cooperatives. Photos: Advans Côte d’Ivoire. About the Authors: Albert Dah  is an agricultural finance expert with over 10 years of experience in developing innovative financial solutions for the agricultural sector at Advans Côte d’Ivoire. After a Master’s degree and a Certificate of Expertise in Agricultural Finance, he has dedicated his career to supporting farmers, cooperatives, and rural organizations by facilitating small producers' access to financial services tailored to their needs. As Director of Agricultural Finance at ADVANS Côte d’Ivoire, Albert Dah leads the institution’s agricultural finance strategy, aiming to promote financial inclusion for small-scale producers, cooperatives, and stakeholders in agricultural value chains. Armel Katinan Ouattara  is the Business Development Manager at Advans Côte d’Ivoire. He has over 13 years of experience in microfinance, financial inclusion, and agricultural finance. His expertise includes project management, strategic planning, financial product design, and innovation in distribution channel development, particularly for digital and agricultural financial inclusion. Armel holds a Master of Science in Corporate Finance from the Lyon School of Management and a Certificate of Expertise in Agricultural Finance from the Frankfurt School of Finance & Management.

Author: Sam Mendelson, e-MFP. On March 12th, e-MFP was pleased to launch the European Microfinance Award (EMA) 2025  on ‘Building Resilience through Inclusive Insurance’. This is the 16th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg (InFiNe.lu), in cooperation with the European Investment Bank. This year, e-MFP is also delighted to welcome as a strategic partner our friends at Microinsurance Network (MiN). In this 4th piece in a series of blogs that we’ll be running throughout the year on this topic, e-MFP’s own Sam Mendelson explains the mental models that make insurance such a hard ‘sell’, and what behavioural insights teach us about how to increase access and uptake.   Insurance, at its core, is a promise. A promise that when things go wrong - when your house floods, your crops fail, your health collapses – someone, somewhere, has got your back . For low-income and vulnerable populations, who often live closest to those risks, the value proposition should be crystal clear. So why is insurance so hard to sell to the very people who need it most? Despite decades of innovation, inclusive insurance has yet to reach its transformative potential. Even where products are affordable , available , and well-designed , uptake remains puzzlingly low among low-income populations. Why? It’s not just a distribution problem. It’s a perception problem. It’s behavioural, emotional, and based on internal logic in ways that traditional economics - with its focus on rational actors – can fail to capture. Understanding the low uptake of insurance products among vulnerable groups requires diving into psychology, culture, and people’s lived experience. The answer lies not only in supply-side or economic constraints, but in the complex and in reality irrational  ways that people perceive risk, weigh decisions, and engage with unfamiliar financial tools. This blog explores the behavioural and perceptual barriers to inclusive insurance - and what can be done about them. The Limits of the ‘3 As’ Traditionally, poor uptake has been attributed to the classic trio: Affordability , Accessibility , and Awareness. These remain critical. But programmes that addressed all three have still faced lacklustre enrolment. A growing body of evidence suggests something deeper is at play. Inclusive insurance is, at its core, a behavioural product . It asks people to give up scarce resources now in exchange for uncertain future benefits . Understanding the psychology behind that decision is crucial to closing the protection gap. Five Behavioural Barriers to Uptake 1.   Present Bias: ‘Why Pay Now for a Maybe Later?’ People - especially those living in conditions of scarcity - tend to overvalue immediate needs and undervalue distant ones. This cognitive bias - present bias  - makes insurance a tough sell: paying premiums today doesn’t satisfy an immediate need, and the benefit may never materialise. A CGAP study in Kenya on mobile health insurance found that uptake increased when premiums were automatically deducted in small amounts  - effectively bypassing the friction of daily trade-off decisions and making enrolment feel painless. 2.   Trust and the ‘Payout Illusion’ Many people simply don’t believe that insurers will pay when the time comes. This isn’t unfounded: opaque terms, complex exclusions, and poor claims experiences have eroded trust. In some contexts, there's a widespread perception that insurance is a scam or a trap - the ‘ perceptual contagion effect’ . In India, studies from the ILO’s Impact Insurance Facility have shown that even rumours of denied claims in neighbouring areas can supress uptake in pilot schemes . 3.   Complexity and ‘Cognitive Load’ Insurance is conceptually difficult - especially when layered onto already-complex lives lived in conditions of high cognitive stress . Poor households are often juggling dozens of survival decisions daily. In that context, unfamiliar financial products demanding mental energy are likely to be ignored. The World Bank’s Mind, Society and Behavior Report emphasises how scarcity taxes the brain , reducing bandwidth for long-term planning or abstract risk-mitigation. 4.   Mental Models of Risk In many settings, people don’t think of risk in probabilistic terms. Instead, they may frame risk through a fatalistic lens  (“ If it’s going to happen, it will happen ”) or rely on community support systems . These mental models shape how people perceive the usefulness of insurance. A 2023 study in Ghana found that uptake increased when insurance was bundled with community-based saving schemes —essentially grafting the unfamiliar onto a familiar and trusted model. 5.   Loss Aversion: ‘If I Don’t Claim, I Lose’ Behavioural economics shows that people feel the pain of loss   more acutely than the pleasure of gain . Insurance premiums, especially if no claim is made, feel like money wasted. This is loss aversion at work—and it makes insurance seem like a bad deal. Interestingly, when schemes reframed premiums as contributions to a mutual support fund, uptake improved – as was the case in several cooperative schemes supported by the ILO’s Inclusive Insurance Initiative .  Breaking down behavioural barriers So what can be done? 1.   Design for behaviour, not just economics. Product design must start from how people actually think.  This includes incorporation of behavioural design principles, such as simplifying choices, pre-selecting beneficial defaults, and breaking costs into bite-sized contributions.   2.    Trust is built through experience—especially when it comes to claims. Claims processes must be fast, fair, and human-centred. Word-of-mouth is a powerful force, and a single good claim experience can unlock local markets. Conversely, a single denial (however justified) can poison the well. Claim visibility, such as letting communities witness payouts, can dramatically improve trust and future enrolment.   3.    Use trusted channels and familiar offerings. People are more likely to engage when insurance is distributed through trusted community leaders, farmer cooperatives, or savings groups. Packaging insurance as part of a familiar offering, like credit, farm inputs, or healthcare, makes it feel less alien. 4.    Bundling  is a powerful behavioural tool. This is especially true when it removes the need for a separate, deliberate decision to enrol.   5.    Communicate for comprehension, not compliance. Insurance jargon can sometimes seem defiantly opaque. Simple, visual, and narrative-based communication is vastly more effective. Testimonials, stories, and analogies resonate more than actuarial tables. Programmes using interactive tools, such as role-playing or radio dramas, have found significant improvements in understanding and uptake. If inclusive insurance is to meet its potential, the sector must stop designing for that most elusive of characters – the ‘rational economic agent’ – and start designing for real people. That means: Respecting the psychological context of poverty; Building trust through action, not promises; Communicating clearly and empathetically; and Embedding products into people’s lives, not asking them to step outside their reality to adopt them. In the end, the problem isn’t just that insurance doesn’t reach the poor; It’s that too often it doesn’t resonate – and so arguments around affordability and premiums-to-payout ratios will often not do the trick. Behavioural insights can help bridge that gap; not by manipulating people into buying insurance, but by making the purchase of suitable insurance a behaviour that is virtually second nature. About the Author: Sam Mendelson is Financial Inclusion Specialist at e-MFP, part of the European Microfinance Award design and evaluation team, and the lead author of the Financial Inclusion Compass. A long time ago, his first degree was in Psychology.

By Carmen Correa, CEO of Pro Mujer. e-MFP is pleased to be an Outreach Partner of the GLI Forum Latam, organised by our member Pro Mujer. #GLIForumLatAm2025 is the first event in Latin America entirely focused on promoting Gender Lens Investing as an effective way to drive equality and economic development in the region. In 2025, the GLI Forum Latam will explore how Gender Lens Investing can become a powerful catalyst to accelerate the achievement of the Sustainable Development Goals (SDGs). In this guest blog, Pro Mujer’s CEO Carmen Correa talks about how we’re falling short on progress to the SDGs, including and especially those relating to gender, and what the upcoming conference will offer for those working in this space. We are five years away from the 2030 deadline for the Sustainable Development Goals (SDGs). Yet, at our current pace, only 15% of these targets will be achieved. That figure should concern us all—but more importantly, it should move us to act. As the CEO of Pro Mujer, a social enterprise that has been working to advance gender equality in Latin America for over 35 years, I’ve seen both the urgency of the challenges we face and the extraordinary opportunity that lies in front of us by shifting how and where we allocate capital. We firmly believe that investing in women’s potential is not just about justice but also one of the smartest, most effective strategies to accelerate progress toward the SDGs. For instance, in Latin America, closing gender gaps in employment could increase GDP per capita by up to 20% (World Bank). However, only 6% of investment fund capital in the region goes to women-led businesses. The financing gap for women entrepreneurs currently stands at nearly $100 billion. If we’re serious about achieving the SDGs, we can’t leave half the population behind. That’s why we created the GLI Forum Latam —a space where decision-makers, investors, and innovators can come together to rethink how we shift narratives, reimagine systems, and align capital with the future we want to build. A Space to Connect, Collaborate, and Mobilize Since its first edition in 2020, the Forum has grown into a dynamic meeting point for the region’s gender lens investing (GLI) ecosystem. Each year, we bring together diverse voices across sectors—from finance and government to entrepreneurship and civil society—to move from ideas to action. Our 2024 edition in Buenos Aires welcomed over 900 participants from 23 countries , with more than 160 speakers across 40 panels, workshops, and sessions . But the real value of the Forum isn’t in the numbers—it’s in the depth of the dialogue, the serendipitous hallway conversations, and the rich, cross-sector exchange that takes place in every corner of the venue. At the 2024 GLI Forum, held in Buenos Aires, participants didn’t just come to talk—they came to co-create . The Forum served as a powerful learning platform where ideas turned into actionable strategies. The energy in the room was underpinned by five key takeaways: Act Locally, Think Systemically : There was broad consensus that translating global gender frameworks into local, context-specific action is critical—especially around policy, entrepreneurship, and caregiving systems. Unpack Biases : Conversations surfaced the invisible barriers that women face in accessing finance and leadership roles. Tackling unconscious bias—through product design, workplace policy, and leadership development—was a recurring theme. Data is Power : The lack of sex-disaggregated data continues to impede progress. Building robust information systems is a precondition for targeting resources effectively and avoiding “pink-washing.” Collaboration is Non-Negotiable : From venture capitalists to civil servants, nearly every speaker returned to one theme—no single actor can move the needle alone. The Forum made visible the growing alliances among funders, governments, and community leaders. Stories Matter : Beyond frameworks and metrics, the Forum uplifted stories of women breaking barriers. These narratives don’t just inspire—they shape policy and investment. This emphasis on shared reflection and concrete action makes the GLI Forum a unique space in the region —not just a conference, but a platform for shaping the future of gender-lens investing. Building on Momentum: What to Expect in 2025 This year’s edition—set in Mexico City at the historic Hacienda de los Morales—will take this momentum forward. With 2030 fast approaching, the Forum will be a space to reflect on what we’ve achieved, identify what remains to be done, and exchange ideas across sectors and lived experiences. The agenda will spotlight: Inclusive economic growth  and the policies needed to sustain it Innovative approaches to capital access  for women-led businesses Integrating gender equality into institutional priorities and investment frameworks These themes are urgent—and grounded in reality. Gender-based inequality continues to shape access, opportunity, and outcomes across our societies. And yet, even amid a global gender backlash, we double down. Because we know investing in women doesn’t displace anyone. It strengthens everyone. At Pro Mujer, we’ve seen this transformation firsthand. What began more than three decades ago as a microfinance initiative is now a broad, systemic push to embed gender into capital flows, product design, and public policy. Through our Gender Knowledge Lab , we work across sectors to bring a gender lens into decision-making. And through the GLI Forum, we build the coalitions needed to turn those ideas into reality. This sixth edition offers a timely opportunity to convene a global, diverse community of changemakers committed to advancing gender equality in all sectors. To ensure broad access, most sessions will offer Spanish-English interpretation. Join Us We invite you to join us at the GLI Forum Latam 2025  and be part of a growing movement that is putting gender equality at the heart of economic transformation. The future is not something we wait for—it’s something we build. And we build it together. Explore the agenda and secure your spot at GLI Forum Latam 2025 About the Author: Carmen Correa: With over three decades of experience in the development sector, Carmen has served as the CEO of Pro Mujer since 2022, driving the organization’s mission to create opportunities for women across Latin America. She first joined the organization as Director of Partnerships in 2017. Subsequently, she served as Senior Vice President and Chief Operations Officer, overseeing Pro Mujer’s transformative social impact programs in Latin America, including initiatives to expand financial inclusion, deliver essential health and well-being services, and empower women through skill-building initiatives.

Author: Sam Mendelson. Kicking off a new blog series to celebrate the International Year of Cooperatives, e-MFP’s Sam Mendelson introduces the history and rationale of the cooperative movement, cooperatives’ role in inclusive finance today, and what e-MFP has planned for 2025.   In a world facing overlapping crises — economic inequality, climate disruption, democratic erosion — how we organise ourselves to meet shared challenges has never mattered more. In 2025, the United Nations invites us to recognise and strengthen one of the most quietly powerful tools we have: the cooperative model. This year marks the International Year of Cooperatives (IYC), under the theme “Cooperatives Build a Better World.” It is at the same time a celebration and a challenge — to spotlight cooperatives as vital actors in sustainable development, and to mobilise support to expand their reach and impact. At e-MFP, we are proud to be part of this global effort, and want to spotlight our members, help people better understand the cooperative model, champion its role in financial inclusion, and learn from the extraordinary diversity of cooperative actors working across our field. So let’s begin there: what are cooperatives, and why do they matter?   What Are Cooperatives? Cooperatives are businesses owned and democratically governed by their members — who may be workers, consumers, producers, or residents. Unlike investor-owned firms, cooperatives operate on the principle of one member, one vote , and exist to meet the shared needs of their members, not to maximise profit. They take many forms . Agricultural cooperatives help smallholder farmers pool resources, access markets, and manage price risks. Credit unions provide savings and loans to people otherwise excluded from formal financial systems. Worker co-ops are owned and operated by their employees. Consumer co-ops deliver essential services, from electricity to healthcare to retail. Housing cooperatives offer affordable, secure shelter. And hybrid models blend these approaches in response to local realities. What unites them is their commitment to equity, participation, and long-term value. Cooperatives embody a different kind of business logic — one grounded in mutual support, democratic control, and reinvestment in the community . This makes them particularly well-suited to contexts where trust in institutions is low, access to capital is limited, and social ties are strong. A Brief History of the Cooperative Movement The cooperative movement has its roots in 19th-century Europe, emerging as a grassroots response to the upheavals of industrialisation. One of the earliest examples is the Rochdale Society of Equitable Pioneers, founded in 1844 in northern England by a group of weavers and artisans. Facing exploitation and economic exclusion, they banded together to open a cooperative store based on democratic governance, transparent accounting, and fair prices. Their “Rochdale Principles” — including voluntary membership, democratic control, and member economic participation — went on to form the philosophical backbone of the global cooperative movement. From those humble beginnings, cooperatives spread rapidly. By the late 19th and early 20th centuries, they were taking hold across Europe, North America, and eventually in colonial and post-colonial contexts throughout Africa, Asia, and Latin America — often supported by social reformers, religious organisations, and later, governments. Cooperatives became essential in rural credit, agricultural production, mutual insurance, housing, and utilities — offering a counterweight to both unregulated capitalism and centralised state control. Today, the International Cooperative Alliance (ICA) represents a global sector of more than three million cooperatives with over one billion members worldwide — testament to a model that has endured, adapted, and proven its value across radically different economic systems and cultures. In the Global South, cooperatives have played a pivotal role in economic development, often emerging in contexts where formal institutions were weak, markets fragmented, or colonial legacies left deep structural gaps. During the mid-20th century, newly independent nations in Africa, Asia, and Latin America embraced the cooperative model as a tool for rural development, food security, and financial access — frequently with state backing. While some top-down efforts struggled with politicisation or bureaucratic inefficiencies, many grassroots cooperatives flourished, rooted in local solidarity and mutual aid traditions. In more recent decades, liberalisation and decentralisation have led to a resurgence of interest in member-driven cooperative models — especially in agriculture, savings and credit, housing, and renewable energy. Today, cooperatives across the Global South are increasingly recognised not only as service providers, but also as vehicles of empowerment, enabling communities to pool risk, build assets, and exercise economic agency on their own terms. Cooperatives and Inclusive Finance: A Natural Fit In the financial inclusion sector, cooperatives are not peripheral players. They are core to how millions of people save, borrow, invest, and manage risk — often through structures that have evolved over decades to suit the needs of underserved communities. Consider rural savings and credit cooperatives, sometimes called SACCOs. These offer low-cost, locally governed alternatives to commercial banks in areas where banking infrastructure is sparse. Producer cooperatives often serve as the entry point for bundled financial services, such as group lending or warehouse receipt finance. In conflict-affected or marginalised communities, cooperative models build resilience and help rebuild trust — a prerequisite for any lasting financial system. Cooperatives also play a crucial role in addressing systemic market failures . By aggregating demand or supply, they overcome scale barriers. By reinvesting surplus revenues, they improve member outcomes. And by anchoring value in local communities, they promote shared prosperity rather than extractive growth. Yet, despite their proven value, cooperatives are often overlooked by funders, regulators, and mainstream institutions. They may be perceived as too small, too informal, or too complicated to support. This is not just short-sighted — it’s a missed opportunity.   International Year of Cooperatives — and e-MFP’s plan The United Nations declared 2025 the International Year of Cooperatives  to draw attention to the role of cooperatives in achieving the Sustainable Development Goals. It follows the success of the first IYC in 2012 and builds on over a decade of global momentum. The 2025 theme — “Cooperatives Build a Better World”  — is more than a slogan. It signals a call to governments, investors, NGOs, development institutions and civil society to: Recognise the unique contributions of cooperatives to poverty reduction, employment, and social cohesion; Support enabling policies and frameworks for cooperative growth; Invest in cooperative capacity-building, especially in governance, finance, and digital tools; Share evidence and innovations across geographies and sectors. 2025 is moment of global alignment — a chance to raise the visibility of cooperative models, challenge outdated assumptions, and mobilise new energy and resources behind what works. At e-MFP, we see this year as a strategic opportunity to: Amplify member voices  — particularly those working with, for, or as cooperatives; Encourage candid reflection  on the real-world challenges cooperatives face — from governance bottlenecks to capital constraints; Bridge sectors  — connecting inclusive finance to broader cooperative movements in agriculture, housing, energy, and more; and Host honest, forward-looking conversations  about what needs to change — in policy, funding, and practice — to help cooperatives thrive. Over the course of 2025, e-MFP will be running a campaign to spotlight cooperatives  and their role in inclusive finance. This will include: A guest blog/essay series  featuring stories, insights, and reflections from across our membership — from agricultural supply chains to conflict zones, from women-led co-ops to digital-first savings groups; and A dedicated stream at European Microfinance Week 2025 , in November, where cooperatives will take centre stage — with a plenary sessions, workshops, and peer exchange formats. Get Involved We are open to other ideas too, such as webinars or other events. If your organisation is a cooperative, supports them, researches them, or wants to learn more — we want to hear from you. We want to make sure members’ work is seen, supported, and learned from. The world’s politics and civic tone feels particularly un cooperative right now. But cooperatives do indeed ‘build a better world’. Let’s shine a light on them. About the Author: Sam Mendelson is Financial Inclusion Specialist at e-MFP and is the e-MFP lead for the Gender Lens Investing and WASH Action Groups. He is also the lead author of the Financial Inclusion Compass .

Author: Richard Leftley. On March 12th, e-MFP was pleased to launch the European Microfinance Award (EMA) 2025  on ‘Building Resilience through Inclusive Insurance’. This is the 16th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg (InFiNe.lu), in cooperation with the European Investment Bank. This year, e-MFP is also delighted to welcome as a strategic partner our friends at Microinsurance Network (MiN). In this third piece in a series of guest blogs that we’ll be running throughout the year on this topic, we hear first-hand the journey of Richard Leftley – a true ‘founding father’ of modern microinsurance. In this piece, he talks about how a week in a Zambian village hut, with a once-middle-class family, crystallised a question that would capture him for the next 20 years: How do I provide an insurance safety net to low income people? We’re delighted to have this contribution (adapted from an interview with VisionFund) from a true microinsurance pioneer as he reflects on what he’s learned at the genesis of the industry – and what it tells us today.     It began in 2001. My journey into micro insurance. If I knew then what I know now, I can categorically say I would never have set out on this journey. I had no idea of the level of risk I was placing myself and my family in. I was 29 and blissfully unaware – which turned out to be a real benefit. I didn’t know how thin the line was. It was a knife edge. I didn’t know how close I was to disaster. I just put left foot in front of right – a very intentional, constant, determined path, in which I took whatever relationship was immediately accessible to me, and used it. I knew insurance and I started to tweak it in incremental ways. I kept going, not randomly, but with one focus: how do I provide that insurance safety net to low income people? I did that little by little. Until one day we had 60 million customers.   The Cost in Dollars and Lives As a London reinsurance broker, in 2001, I was dealing with insurance companies in Africa. One defining document was a report into the impact of natural disasters which laid out the cost in dollars and the cost in human lives. The dollar measurement was for the US, Japan, the UK. The measurement in lives was Bangladesh and India – emerging markets. Only one or two percent of the population in Africa or in Asia had insurance. And they were the people who had a car, a bank account and were employed – so might have some embedded insurance. While in developed markets there is a safety net – so when bad things happen, individuals, corporations and society don’t just slip back into poverty – that safety net doesn’t exist in emerging markets. I wanted to understand why people in emerging markets did not buy insurance. So, I went to Northern Zambia to find out.   Snakes & Ladders I joined a two-week school-building trip to Zambia, but I was there to find out why rural Zambians didn’t buy insurance. I came away with a very clear understanding. I was fascinated with the life-story of the single-parent family I was living with: a single mum and her kids. She’d been born in the village and had progressed to become middle class. They had moved from the village to the Capital city where they had an apartment and a motorbike. She was a schoolteacher, and her husband was a security guard. They’d progressed economically; they’d become middle class. Yet here they were back in the village – with one set of clothes, and no shoes. She explained that her husband got sick. They spent their money on doctors, and when he died, she spent the remaining money on his funeral. They had no safety net – so came back in the village. She told me her life was like a game of snakes (or chutes, in the US) and ladders. She actually showed me the snakes and ladders board. She explained her challenge: “ I am trying to work my way up, and from time to time – thanks to a micro finance loan – I go up a ladder. That accelerates my move towards being wealthier. But my experience is that when I hit these snakes, or chutes, there is nothing to stop me sliding all the way back down to the bottom ”. And she challenged me: “ I am happy to work my way out of poverty – I have done it once, and I’ll do it again. But what I need is a safety net that moves up underneath me. So that when bad things happen I don’t go all the way back down to the bottom in the way that I did”. To me this was the challenge, the signal I needed.   The Genesis of an Industry I started by working out what stopped people buying insurance. The complicated process excluded people who were not financially literate: a 20-page document; a visit to an office; the need for a bank account; the payment of a year’s premium up front. I knew we had to simplify the products. We had to be able to explain the product in a single text message: If you die for any reason, we’ll give your dependant $1,000. If you go to hospital for any reason for two nights or more, we’ll give you $100 . To sign up, clients didn’t have to go to an office – they could send a text. They didn’t have to sign a form. They could pay the premium weekly, alongside their loan payment at the bank. Our clients didn’t have cash flow, so we worked on how to get claims paid quickly – on the same day, or next day, and certainly in the same week. That was the focus to begin with and that was where the industry started off. And, in the first five years we developed simple products - working mainly with the microfinance sector. Then the challenge shifted to how do we reach massive scale?     From Scale to Sustainability – And Profit The second phase was scale, reaching beyond the microfinance community (which then had around 150m borrowers globally) to access more of the four billion people without insurance. We explored working with telecoms providers; money transfer companies; ride hailing, to understand who made a good partner. And the chapter we are now entering was: how do we make this sustainable and (dare I use the word) profitable ? How do we make this into a commercially viable venture? The microfinance community has always found profit to be a difficult word, because you are making profit from poor people. Proxies like “sustainable” are more palatable. Offering microinsurance as a product through the microfinance community necessitated a lower return on our microinsurance. But Lloyds of London (who underwrote us) insures spaceships and ocean liners. We needed a version of ‘Lloyds’ where the capital could come from donors, and the expectation of return sat in line with a social business, rather than fully-for-profit business. That is starting to take shape in various ways around the world, but we’re not there yet. But I believe that is the direction the industry needs to go in. The model we tried was a ‘split double baseline’ (for profit in one area, sustaining loss making in a less profitable area). But there was inevitable pull to those programmes or employees generating the greatest return. However hard you try, resources and focus start moving that way. Its human nature – investors’ nature, to focus on what is profitable. It’s a very hard tension to hold. The answer lies, I believe, in the huge burgeoning middle-income market. India has 300 million people considered to be ‘middle income’. But they are not served with insurance. I believe the answer lies in a double bottom line. Instead of talking about micro or low-income insurance only, let’s talk about the mass market , which is everyone who doesn’t have insurance. In many of these countries that is 90% of the population, many of them ‘middle income’.   Climate Resilience The impact of insurance in these nations, is critical. On climate, historically, the model has seen the not-for-profit sector put out a TV advert when a disaster lands, and the general public give money. A disaster in East Africa or an earthquake in Nepal is, to some extent, an essential part of not-for-profits business model – it provides a percentage of the income to help cover overheads and operational costs. The alternative to that is insurance. So when there is an earthquake, or a flood, or famine, there is insurance. Instead of waiting for the disaster to strike and then raising money, you raise a little bit of money, ahead of disaster, which is spent on insurance premiums. But this is harder to sell to people. A TV advert asking people to contribute to pay for a climate insurance premium, ahead of the disaster doesn’t sell in the same way as a picture of a child in a disaster. I’d note that there is, therefore, a little bit of resistance from the not-for-profit sector about replacing the current model of “ a disaster happens; let’s raise some money ” to “ before the disaster happens, let’s buy some insurance ”. Therefore I wonder – is there a way of combining these two? It’s not feasible to replace all the potential scenarios that might happens and replace them with insurance. But would it be useful if, when a disaster does happen, we can say, with immediate effect, let’s dispatch these resources because we know the money will be coming to those who need it in the form of insurance. It’s been a challenge for the non-profit sector to work out how to combine these approaches. But the insurance industry is potentially very well set up for this scenario. It’s a perfect fit. All we have been talking about so far is very hard for the insurance industry to get their heads around. They’re very comfortable with those infrequent catastrophic events, but not with the frequent small events which is what microinsurance tried to deal with. So the industry doesn’t need any convincing that there is unlimited capital available for these kinds of products. There is a huge interest from the insurance market in doing this and we haven’t tapped into it in the way that we need to.  Now What? VisionFund [upon an interview with which this is based] is an example both of what’s being done well – but also how much more is needed. VisionFund is one of the leaders in insurance among the microfinance players, providing important products and strong value for money to borrowers, with ClimaCash+ (a new climate insurance product that offers a simple, fast, parametric payouts triggered by specific weather conditions) just one innovative solution. But the challenge is “now what?” – how can organisations like this extend to more people – both beyond borrowers (e.g. WorldVision Savings Groups) and beyond the organisation itself, to clients of other networks? It’s now about how do we maximise the impact. The question that hit me at the genesis of this industry was How do I provide an insurance safety net to low income people?  Today the question we face as a whole sector is slightly different: How do we create profitable solutions that solve the protection gap for the next billion people? About the Author: Richard Leftley pioneered micro insurance, starting in January 2002 when he founded MicroEnsure which became the global leading insurtech providing insurance to over 64 million people in 12 countries across Africa and Asia. In 2020 he co-founded MIC Global which became a leading reinsurer underwriting products globally via its Lloyds syndicate 5183 and via MIC Re in Anguilla. In 2022 Richard founded Wavu as an independent consultancy providing services to the World Bank Group, serving as a non-executive director for insurtechs and helping establish new ventures for large corporates. Richard helps companies understand how to reach scale via B2B(2C) partnerships, where best to be positioned in the insurance value chain and helps insurtechs raise capital. Main photo: VD Photography via Unsplash.

Authors: Matthew Genazzini and Asier Achutegui, Microinsurance Network. On March 12th, e-MFP was pleased to launch the European Microfinance Award (EMA) 2025  on ‘Building Resilience through Inclusive Insurance’. This is the 16th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg (InFiNe.lu), in cooperation with the European Investment Bank. This year, e-MFP is also delighted to welcome as a strategic partner our friends at Microinsurance Network (MiN), who have provided invaluable support in the design and development of the EMA 2025. It's appropriate therefore that MiN should be the organisation kicking off e-MFP’s annual series of guest blogs on this topic, and with a very timely announcement, too: MiN has just published (on March 6th) its latest Landscape of Microinsurance , the definitive annual look at the trends, challenges and future of the microinsurance sector.   In this first guest blog,   Matthew Genazzini and Asier Achutegui talking about the relationship between microinsurance and financial resilience, some trends underway in that sector, a few key findings from this new paper – and what they think it means for the future of microinsurance. In an increasingly uncertain world marked by climate shocks, economic volatility, and social vulnerabilities, microinsurance has emerged as a critical financial tool to protect low-income populations. Microinsurance (alternatively known as inclusive insurance  - although with some differences) provides coverage to individuals who would otherwise have limited or no access to conventional insurance, offering a chance for financial resilience in times of crisis . For the financial inclusion sector, integrating insurance into broader financial services is essential. While efforts have been made to expand access to savings, credit, and payment systems, insurance remains an often-overlooked component of financial well-being . Without adequate risk protection, low-income populations remain highly vulnerable, limiting the impact of financial inclusion initiatives. Insurance acts as a ‘safety net’, preventing financial setbacks from eroding progress made through other financial inclusion efforts. Ensuring that microinsurance is recognised as a core element of financial inclusion strategies can significantly enhance economic security for underserved communities. The Landscape of Microinsurance  study is an initiative conducted by the Microinsurance Network (MiN) to collect, analyse, and present data on the global microinsurance market, providing the only benchmark of this sector. The study provides a comprehensive overview of the sector, capturing insights from insurers, policymakers, and development institutions to assess market evolution, regulatory developments, and emerging trends. By examining the number of people covered, premium revenues, and innovations in microinsurance products, the study serves as a key reference point for stakeholders aiming to enhance financial protection for low-income populations. The findings help governments and insurers understand the challenges and opportunities in expanding microinsurance coverage, driving evidence-based policy decisions and industry strategies.   The Role of Microinsurance in Financial Resilience Microinsurance plays a pivotal role in mitigating financial risks for low-income households, smallholder farmers, and small businesses. With traditional humanitarian and government relief programmes struggling to keep pace with escalating risks, microinsurance provides a proactive solution by transferring risk before a crisis occurs . According to the 2024 Landscape report , 344 million people are covered by microinsurance across 37 countries, up from 331 million the previous year. Beyond providing immediate financial relief, microinsurance enhances economic stability by enabling policyholders to recover from setbacks more quickly . The World Bank  and CGAP have highlighted that financial resilience is critical to sustainable development, as unexpected financial shocks often push vulnerable communities deeper into poverty. According to CGAP , microinsurance complements microfinance  by protecting low-income individuals from financial ruin when facing sudden medical emergencies, crop failures, or income losses due to climate-related disasters. According to the International Labour Organisation’s (ILO) Impact Insurance Facility , microinsurance contributes to economic growth by fostering a more secure environment for entrepreneurship . Small business owners and farmers are more likely to invest in growth opportunities when they have access to insurance, knowing they have a safety net in case of unforeseen losses. For example, in agricultural economies, microinsurance products tailored to weather-related risks enable farmers to take calculated risks in adopting new farming techniques, leading to increased productivity and higher income levels. Similarly, the United Nations Development Programme (UNDP) underscores the importance of microinsurance in achieving the Sustainable Development Goals (SDGs ) , particularly SDG 1 (No Poverty), SDG 3 (Good Health and Well-being), and SDG 13 (Climate Action). Health microinsurance reduces the financial burden of medical expenses, ensuring that low-income families do not have to choose between paying for healthcare and meeting their basic needs. Climate-related microinsurance products provide financial protection against extreme weather events, preventing economic devastation in regions highly susceptible to climate change. Moreover, the Access to Insurance Initiative (A2ii) has emphasised that inclusive insurance, including microinsurance, should be integrated into national financial inclusion strategies  to enhance resilience at the household and community levels. Governments and regulators play a crucial role in fostering a supportive environment for microinsurance, ensuring that products are both accessible and affordable. Financial literacy programmes and public-private partnerships are essential to promoting insurance awareness and uptake among low-income populations. In essence, microinsurance serves as a  key instrument in building financial resilience, bridging the gap between financial inclusion and risk management . By enhancing the ability of low-income populations to cope with uncertainties without falling into deeper poverty, microinsurance not only provides immediate security but also fosters long-term economic stability and growth. The increasing recognition of its role by global institutions underscores the need for continued investment in microinsurance infrastructure, regulatory frameworks, and consumer education. Tracking microinsurance: Why it matters The systematic tracking of microinsurance is essential for multiple reasons: Closing the protection gap : Despite growth, only 11.5% of the estimated market for microinsurance is currently covered, leaving nearly 3 billion people without adequate financial protection. Identifying trends and challenges : Monitoring microinsurance data helps identify emerging risks, regulatory challenges, and market dynamics, ensuring timely interventions. Policy and regulatory development: Governments and regulators can use data insights to create favourable microinsurance regulations, leading to increased financial inclusion. Encouraging innovation: Tracking enables insurers to innovate by developing products tailored to customer needs, such as digital insurance solutions and climate risk products. Key Findings from the 2024 Landscape of Microinsurance Growth in coverage : Microinsurance continues to expand, with coverage increasing from 331 million people in 2023 to 344 million in 2024 across 37 countries. This 4% growth reflects the sector’s steady progress in addressing financial resilience for low-income populations. Alongside this expansion, premium revenues grew from USD 5.8 billion to USD 6.2 billion, highlighting the increasing scale of microinsurance markets. While life and funeral insurance remain dominant, newer product lines such as climate risk, property, and income protection are expanding, with 112 climate-related products now covering over 42 million people. Increased donor and government support: Governments and multilateral organisations are increasingly recognising the role of microinsurance in building resilience and are backing it with financial and policy support. In 2024, the Global Shield against Climate Risks expanded its reach, offering pre-arranged protection for climate and disaster-related risks in more countries. Similarly, the United Nations Environment Programme Finance Initiative (UNEP FI) launched the Bogota Declaration on Sustainable Insurance, strengthening the commitment of insurers in Latin America and the Caribbean to support the Sustainable Development Goals (SDGs). Likewise, the Nairobi Declaration on Sustainable Insurance was introduced with similar ambitions for the African insurance sector. In addition, government and donor subsidies are playing a vital role, particularly in agriculture microinsurance, where 58% of products included in the study receive some sort of financial support, collectively covering more than 54.5 million people. Diversification of products: New microinsurance products are emerging to cover previously uninsured risks, particularly in agriculture, climate risk, and small business resilience. In 2023 alone, 55 new products were launched, with a majority concentrated in personal accident, agriculture, and property product lines – as Figure 1 shows. Figure 1 Distribution of insurance product types by year Long-term approach/strategy needed : Insurers, distribution channels and other stakeholders must have a longer-term approach and provide enough time to reach scale . From the data collected in the Landscape, it appears that products need at least 4 years in the market to reach to scale – as seen in Figure 2. Figure 2 Increase in gross insurance premiums and coverage by age of product Challenges in innovation and data collection : While innovation is on the rise, insurers face constraints such as limited investment, regulatory barriers, and inadequate gender-disaggregated data. Out of the 985 products featured in the study, insurers could only provide gender disaggregated data for less than half. To overcome these challenges, microinsurance stakeholders must prioritise better data collection and product innovation. The Future of Microinsurance To maximise the impact of microinsurance, stakeholders—including insurers, governments, donors, and development organisations—must collaborate to expand coverage to underserved populations by investing in outreach and financial literacy programmes . Improving data collection and tracking mechanisms  will enhance decision-making and regulatory effectiveness, ensuring that microinsurance remains a viable and effective financial tool. Promoting public-private partnerships  will be essential in scaling microinsurance initiatives, particularly in climate and health risk insurance, where collaborative efforts can amplify impact. Governments and development organisations are increasingly advocating for public-private programmes to address the risk management needs of vulnerable populations, with a particular focus on health and climate risks​. Additionally, supporting the responsible scaling of subsidies will help maintain affordability while ensuring long-term sustainability. Data from the report shows that 58% of agriculture microinsurance products receive subsidies, covering 54.5 million people, highlighting the importance of structured and sustainable financial support​. The report also underscores the need for a long-term strategy in subsidy implementation to avoid sudden disruptions that could undermine microinsurance initiatives​. The microinsurance sector must continue innovating, leveraging technology, and tailoring products to address the evolving risks faced by vulnerable communities, thereby reinforcing financial resilience at a broader scale. Microinsurance is an essential tool for building financial resilience among vulnerable populations. The 2024 Landscape of Microinsurance underscores the importance of continuous tracking, innovation, and regulatory support to bridge the protection gap . As the sector evolves, leveraging data and market insights will be crucial in ensuring that microinsurance reaches its full potential in safeguarding the livelihoods of millions worldwide. We at MiN are pleased not only to present this new Landscape, but to leverage its findings as part of the European Microfinance Award 2025 , which launched on March 12th. About the Authors: Matthew Genazzini has 15 years of experience in development finance and inclusive insurance and is the Executive Director of the Microinsurance Network. He has a BA in Contemporary History from the University of Sussex and an MA in Latin American Studies from the University of London. He has significant experience in the inclusive finance sector with ADA – Appui au Développement Autonome, managing capacity building and product diversification projects for financial institutions, with a particular focus on microinsurance. In 2017, Matthew managed the Technical Support for MFI’s unit in ADA, which aimed to strengthen financial institutions through the provision of financial and technical assistance services, and in 2020, he changed position and launched the Smallholder Safety Net Up-scaling Programme (SSNUP), a public private development partnership aiming to strengthen the resilience of smallholder farmers by promoting investments in the agricultural sector. In parallel, Matthew joined the board of the Microinsurance Network in 2019 and later, in October 2024, become the director. Asier Achutegui - With nearly 20 years of experience in development, Asier has worked in evaluating, developing, and designing public policies for social inclusion in Latin America and the Caribbean. He has travelled extensively in search of global development solutions and has been involved in budgeting for projects aimed at improving the quality of life for the most vulnerable segments of the population. Asier has also played a key role in establishing and securing funding for multi-stakeholder institutions and nonprofit organisations. Since 2020, Asier has been a member of the Microinsurance Network Team, where he is responsible for a variety of programmes, including regionalisation, Best Practice Groups (working groups), organising global events, and managing relationships with members.

Author: Solène Favre, VisionFund International. On March 12th, e-MFP was pleased to launch the European Microfinance Award (EMA) 2025  on ‘Building Resilience through Inclusive Insurance’. This is the 16th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg (InFiNe.lu), in cooperation with the European Investment Bank. This year, e-MFP is also delighted to welcome as a strategic partner our friends at Microinsurance Network (MiN). In this second piece in a series of guest blogs that we’ll be running throughout the year on this topic, Solène Favre, Global Director of Insurance for VisionFund International (VFI) argues, through the case example of one of World Vision’s savings group clients in Rwanda, that MFIs are a natural fit as distribution channels for microinsurance – yet misconceptions and challenges stymie growth of this model. There is a profound link between microfinance institutions and microinsurance. As Muhammad Yunus once said, “ When microfinance institutions step up to offer such solutions [microinsurance], they hold the power to change lives and empower communities, providing not just financial services but the security that every individual deserves ”. The Story of Venuste Venuste, a member of World Vision’s savings group in Rwanda, endured immense hardships that tested his resilience and ability to provide for his family. Venuste’s story demonstrates the transformative role of microfinance institutions (MFIs) in helping individuals overcome financial shocks. After losing his wife, Clarisse, and later his leg due to a severe infection, Venuste faced immense challenges. At a crucial time, VisionFund Rwanda provided him with the needed financial support through a loan bundled with insurance products. This safety net covered funeral costs, hospital bills, workers’ wages, and his children’s school fees, preventing him from falling into poverty. The insurance benefits allowed Venuste to focus on recovery and adapt to his new circumstances. Unable to continue vegetable farming due to his disability, he transitioned to pig breeding—a venture better suited to his physical condition. This shift not only ensured a stable livelihood but also marked a fresh start for Venuste as an entrepreneur. Microinsurance made the vital, life changing difference for Venuste. How prescient those words were. MFIs such as VisionFund play a vital role in offering accessible financial tools tailored to vulnerable populations. By bundling loans with microinsurance, they provide both short-term relief and long-term stability, enabling clients to navigate crises and rebuild their lives. Venuste’s journey highlights how these institutions empower individuals to not just survive adversity, but also to thrive by turning challenges into opportunities for reinvention and resilience. The Natural Fit of MFIs Providing Microinsurance Microinsurance has grown rapidly in recent years- we saw that again recently with the release of the Landscape of Microinsurance  from the Microinsurance Network (MiN), offering simplified procedures, lower premiums, and accessible claims processes to meet the needs of low-income communities. However, its penetration remains low, highlighting the critical role of MFIs in bridging this gap. MFIs are uniquely positioned to develop and distribute microinsurance due to several advantages. Firstly, MFIs have established trust with underserved populations , fostering confidence in financial products like insurance. Their clients, often hesitant to engage with unfamiliar institutions, are more likely to adopt microinsurance when introduced by trusted MFIs. Secondly, MFIs possess local infrastructure , including field agents, mobile platforms and client data systems that efficiently reach remote populations. Thirdly, their expertise in managing financial transactions  ensures effective implementation of insurance products. MFIs also understand the needs of low-income clients through extensive networks and needs assessments. This knowledge enables them to design tailored products while educating clients on financial concepts . Microinsurance fits seamlessly into MFIs’ holistic approach to improving financial well-being by providing protection against unexpected events that can derail stability. For MFIs, microinsurance complements their core activities, generating additional revenue while improving social impact. By empowering clients to handle life’s shocks and climb the economic ladder, MFIs can become one-stop shops for financial solutions . Ultimately, microinsurance enhances resilience and transforms lives by turning crises into opportunities for growth. Misconceptions Remain Despite the advantages of MFIs in distributing microinsurance, several misconceptions hinder its full potential. These misconceptions exist at both the insurer and MFI levels: Low client education : Some insurers believe low-income populations lack knowledge or interest in insurance products. However, MFIs are well-equipped to educate clients about insurance concepts due to their close community relationships. Profitability concerns : There is a perception that microinsurance premiums are too low for insurers to profit or too high for clients to afford. In reality, administrative costs are minimized when MFIs handle customer acquisition, enrolment and claims processes. MFIs' understanding of client needs and existing processes for data collection and loan management make premium integration easier. Low MFI expertise:  While MFIs primarily focus on credit and savings, insurance can be easily introduced and implemented. MFIs' expertise helps insurers avoid one-size-fits-all approaches, recognizing that products successful in one context may not work in another. To overcome these challenges, collaboration between insurers and MFIs – as distribution channels - is crucial . By working together, they can design affordable, tailored products for specific markets while educating clients about their value. This partnership can unlock the full potential of microinsurance, making it more accessible and ensuring relevant and accessible products for vulnerable populations. Innovation and partnerships are key, particularly in seeking solutions for where MFIs serve communities more prone to weather related disasters and the impacts of climate change. As VisionFund we have worked together with Ibisa, an insurtech to develop the ClimaCash+ product. The idea is to adapt the successful principle of hospicash to climate risks. ClimaCash+ is a suite of parametric coverages such as RainCash, DroughtCash, HeatCash… simple to understand, simple to use and to claim (automatically loss assessment and payment when the trigger is reached). The Transformative Power of MFIs MFIs face challenges in actively engaging with microinsurance, despite its benefits. Although MFIs generate income from microinsurance, that income often covers only the operational costs of training and services, requiring negotiation for higher commissions to generate profits. Network headquarters with dedicated teams can help, but covering expert costs poses a challenge. VisionFund International addresses this by offering operational support to other MFIs or other partner organisations, helping them determine suitable products, collaborate with local insurers, and implement solutions through training and practical support. This work is important given the low penetration rates of insurance across low-income communities and has enabled VisionFund to grow to now offer insurance products from credit life, health, hospicash, asset, livestock, crop, climate and more, to over 2.3m clients globally, through its network MFIs and through technical support to partners. Today, Venuste’s story has taken a hopeful turn. His pig farming business has grown steadily, providing him with a stable income that supports both his family’s needs and his aspirations for the future. His children remain in school, continuing their education uninterrupted—a testament to how financial safety nets can preserve opportunities even during crises. Venuste’s journey exemplifies resilience in action: not merely surviving hardship but using microinsurance to adapt creatively and finding new paths forward. The combination of VisionFund’s support and bundled insurance products empowered him to rebuild after devastating losses—proving that even in the face of overwhelming adversity, recovery is possible with the right tools. Venuste's experience highlights how MFIs like VisionFund foster resilience through microinsurance. By bundling loans with tailored insurance products, MFIs provide safety nets that protect against shocks and enable stability. In a world where families increasingly face health emergencies and natural disasters, MFIs play a crucial role. They empower individuals like Venuste to overcome challenges and seize opportunities, transforming despair into hope. His journey shows that resilience is built through communities uniting with compassion and support. As MiN’s latest Landscape shows, the opportunities for growth in microinsurance are enormous – and so too is the role that MFIs can play in helping it. As Joachim von Amsberg, Vice President of Development Policy and Partnerships at the World Bank, says: “ In the world of microinsurance, MFIs are more than just distributors – they are enablers. They are uniquely positioned to bridge the gap between traditional insurance providers and the world’s most underserved populations, helping to create a more equitable system of risk-sharing ”.  Let’s grasp this immense opportunity, and ensure that insurers, MFIs and other key stakeholders see themselves as partners, all pursuing a common goal. About the Author: Solène Favre has been Global Director of Insurance for VisionFund International (VFI) since February 2019. With her team, she supports MFIs in setting up insurance operations for their borrowers and their families. More recently, VFI's insurance team has expanded its technical assistance for WV National Offices and other MFIs & organisations to protect more families and more children among WV beneficiaries. Currently, she is also a board member of the Microinsurance Network. Before joining VisionFund International, Solène created and managed the Cambodian subsidiary of the French insurance group Prévoir, the first microinsurance company in Cambodia for almost 7 years, reaching 300,000 insurance policies with a team of 147 people. She also worked on a pilot project to set up Cambodia's National Social Security before it was handed over and launched by the Ministry of Labor in 2012. She also ran a micro-insurance program in India for 2 years providing a health and life community-based insurance for slum dwellers in Maharashtra. She started her career in France working for a mutual insurance company for 10 years.

Author: Tamsin Scurfield, Opportunity International. Opportunity Bank Uganda Limited was one of the semi-finalists of last year’s European Microfinance Award on Advancing Financial Inclusion for Refugees & Forcibly Displaced People . Continuing e-MFP’s focus on different approaches to this topic, this latest guest blog is by Tamsin Scurfield, the new Head of Refugee Finance for Opportunity International (OI), who explains OI’s work with  60 Decibels on a study on the impact of OI’s work on refugee finance – and the importance of a ‘human-centred design’ approach. Overseas aid budget cuts are expected to have devastating effects in the humanitarian sector, at the same time as the number of refugees has more than doubled in the last ten years - and trends suggest numbers will continue to rise. At the end of June 2024, 122.6 million people remained forcibly displaced globally due to persecution, conflict, and human rights violations. Of these, 38 million are refugees. Despite wishing to, many cannot return home. In 2024, only 1% returned to their countries of origin and less than 0.5% were resettled .  As humanitarian crises are predicted to continue, it is imperative we create solutions that mean refugees are able to overcome the many challenges they face in not only adapting to a new way of life in a new country, but also challenges such as access to markets, limited livelihood opportunities; and lack of documentation required to grow a business and become clients of a bank. Working together to overcome these challenges we have seen first-hand how refugees are able to support themselves and become less reliant on humanitarian aid.  Uganda is among several low- and middle-income countries that together host 71% of the global refugee population. It is in Uganda where Opportunity International first stepped into the refugee space . In 2018, we visited the Kiryandongo and Nakivale refugee settlements and met a refugee called Daniel Baptiste, a self-made entrepreneur who had recently arrived with his family fleeing conflict in South Sudan. He was a civil servant and former journalist who spoke four languages. What Daniel told us was that inside the Settlement he was welcomed, given an ID number and some food, but felt he was treated like a child. Daniel said he simply wanted to be able to work. He had managed to create for himself a small homestead, with goats and a few chickens. With his wife they baked and sold bread on food distribution days as the lines of refugees were waiting for their World Food Programme drop-off. However, there was no grinding mill in the Settlement, and he was frustrated by lack of capital to grow his small farming and business efforts. Fast forward to 2025 when, working with  Opportunity Bank of Uganda (OBUL)  and FINCA International  we have been able to serve over 40,000 refugees and host community members though training in finance and business, we’ve supported 18,500 to access savings and disbursed over 6,000 loans to a value of $2m, helping refugees grow and expand their small businesses. ‘Human-centred’ design   Using a human-centred design, our approach to evaluate the impact of this work started with financial diaries, which provides a systematic study of the financial lives of low-income people. We targeted 397 participants in Nakivale and Kiryandongo Settlements to better understand patterns in income and expenditure to be able to inform appropriate product development. We segmented potential clients into three categories: subsidence, resilient and independent. Using their income and profit margins we were able to test a minimum viable proposition for those suitable for savings and credit. We did this alongside stakeholder mapping of players in the sector to ensure any financial inclusion aligns and compliments the work of humanitarian, government, refugee and private sector actors within the ecosystem. Bank products and training typically target 70% refugees and 30% host community members and continue to be refined and improved based on performance and user feedback.   When we started, our objective was to test the business case for financing refugees, build their financial capabilities, help them save securely and grow their businesses. We learned that refugees were a viable client segment. They were as good (and sometimes better) at repaying loans than nationals and could be financed sustainably. What we came to learn is in order to achieve self-reliance and increase household income, we needed to go beyond just financial inclusion and create market-based solutions that are both inclusive and sustainable over time . Entrepreneurship support is one solution to create income opportunities, jobs and sustainable livelihoods. It is promoted as a key pillar in the refugee space by UNHCR, Governmental and NGO players and it is a complimentary activity, along with a microfinance offering. Typically entrepreneurs go through various stages in their journey, from ideation, to start-up; growth and scale. We partner directly with refugee-led organisations and enablers  such as Cohere and PHB - Scaling for Impact , so that alongside financial products and services, we can offer enterprise development support that includes access to targeted, scalable funds to strengthen businesses and organisational capacities. In this way we are creating skills, employment opportunities and sustainable outcomes for refugee communities within a broader ecosystem and market framework that should live on well beyond any external grant support.   Evaluating Impact  In 2024, with support from the Swiss Capacity Building Fund  and 60 Decibels , trained researchers conducted 275 phone interviews in local languages to existing OBUL clients inside of Nakivale Refugee Settlement, to collect insights into outcomes they have experienced as  a result of financial inclusion .   It was clear from the responses that OBUL is having a strong, positive impact on the life and businesses of its customers. Customers have been able to increase their income through investments in agriculture, expanding their inventory and increasing their daily earnings. Just under 25% also reported they were able to hire employees, averaging at least two employees more than before the loan. 91% confirm that their business exists 18 months after the loan ends, showing that refugees are investable and that they can become self-reliant when given the opportunity.    Most customers also reported improved financial wellbeing, which they attributed to OBUL, with 85% saying their ability to manage their finances has improved. In life, we all face unexpected challenges. The same is true of the refugees living in Nakivale, but from the interview feedback, OBUL customers also reported being more resilient financially, meaning they are better able to face emergencies. 79% of customers reported having increased savings.     Building Resilience  With the world experiencing increasing climate shocks, we are helping clients build resilience so they can face these potential challenges from the climate. Nearly half of customers affected by climate shocks say OBUL has strengthened their ability to recover. This was as a result of better financial planning, access to emergency loans, and business diversification. OBUL has also helped customers build financial safety nets and diversify income sources, helping protect them from future climate shocks and supporting them to rebuild their lives.   ‘My life has improved because of the good profit I’m making from the shop now. I can pay the school fees for two of our children, while my husband covers the others. I can also manage to meet my basic home needs.’ Female refugee in Nakivale, 39 years. As a global non-profit organisation, OI believes in the power of innovative financial solutions to help refugees build sustainable livelihoods. On the supply side, we support financial institutions with technical assistance, grants, and blended financial tools to deliver financial products and services that meet the needs of refugees. On the demand side, through enterprise development support building refugee capacity to manage investments, we create sustainable income generating activities and financial inclusion linkages. As we face the scale of global displacement, at Opportunity we will continue to support our clients with lasting solutions so that they can be self-reliant and be able to provide for themselves and their children. For more on OI’s work on this topic, see the recording of the ‘Deep Dive’ session at EMW2024  and the EMW2024 plenary on advancing financial inclusion for refugees & FDPs. See also recent blog post by the former Executive Director of Opportunity International Inc. Deborah Foy, entitled Climate Change is Massively Accelerating Forced Displacement. How Should the Financial Inclusion Sector Respond?  on how financial inclusion can be a tool for preventing climate-induced displacement,  helping communities to be more resilient, and in supporting forcibly displaced populations (FDPs) to rebuild their lives. About the Author: Tamsin Scurfield holds a newly created post of Head of Refugee Finance for Opportunity International where she provides leadership to ensure the program delivers scalable and inclusive financial services to Refugees and host communities.

Author: Dalia Ali. In this latest e-MFP guest blog, Dalia Ali, discusses trends and challenges of fintechs digitising the ROSCA model, and provides examples of how this is now happening. The case for Rotating Savings and Credit Associations ROSCAs The Rotating Savings and Credit Association (ROSCA) stands as one of the oldest and most popular informal financial institutions, that thrives on community-based pooling of resources and is driven by shared trust and mutual support of the group. A group of individuals, typically from a close-knit community, agree to contribute a fixed sum regularly, typically on monthly basis. The accumulated funds are then distributed to each group member in rotation. The order of this lump-sum distribution is either randomly assigned or based on financial need, as agreed upon by the group members. ROSCAs are an imperfect alternative to the mainstream banks that help participants save money and access credit, which otherwise might be difficult for them to obtain from the conventional financial market. ROSCAs are very prevalent among adults in developing countries, with membership rates reaching up to 95% in several African nations like the Republic of Congo, Cameroon, Gambia, Ivory Coast, Togo, and Nigeria. [1] They also have a different name in each country, such as Ajo in Nigeria, Susu in the Caribbean, Tanda in Mexico, pandeiros in Brazil, and Ekub in Ethiopia. An important foundation and prerequisite for the effective functioning of ROSCAs is the existence of social capital and strong mutual trust among the participants. People rely on social capital and local information to evaluate the reliability and creditworthiness of a borrower. The ease of information flow and circulation between people, particularly in rural communities, helps in establishing and sharing local information about the people who live in the same area. [2] The existence of mutual trust among the participants significantly limits the transaction costs, as monitoring is not required. [3] ROSCAs tend to be formed by a group of individuals of a cohesive community who are aware of the socio economic status, reliability, and social capital of each other. Thus, in the absence of legal enforcement mechanisms, peer pressure and the fear of being ostracized by the community will guarantee the continuation of payments. [4] Trends and innovations in digitising ROSCAs ROSCAs play a vital and instrumental role in the informal sector, helping their members, who are predominantly women, with accessing savings and interest-free loans. Over the past decade, numerous fintech start-ups have sought to harness the potential of ROSCAs by integrating the model into the mainstream financial landscape through digital transformation. Here are some examples of start-ups that are digitising ROSCAs: Oraan in Pakistan Oraan is Pakistan’s first woman-led fintech startup which was founded in 2018. Their digitised ROSCA focuses primarily on women. With only 13% of Pakistani women having access to financial services , Oraan’s mission is to make financial services accessible for every woman in the country . Upon registration, users can join one or multiple groups that align with their financial goals and preferences. Furthermore, they have launched "Oraan SNPL", a new product in collaboration with four Pakistani universities, specifically designed to finance students from these partner institutions . By November 2021, they announced reaching a milestone of growing their community to 2 million women. Equbs in Ethiopia In 2020, eQUB launched a digital savings platform that is based on the ROSCA model, locally known as Equb in Ethiopia. Users can filter and explore different Equbs and select one based on their preference in terms of location, amount deposit and frequency of contributions. In each sub-round, the Equb wheel is spun, randomly selecting a member to receive the lump-sum amount. In an effort to streamline the process of cash deposits on collection days for Equb members, they have collaborated with Hibret Bank in Ethiopia for the launch of a new product named ‘Equb Collection Deposit Account .’ Although having a similar name, Digital eQub is another fintech in Ethiopia that aims to enhance accessibility by enabling individuals to join an Equb group without physical meeting constraints. Members can make their contributions via mobile banking or Telebirr and can opt to collect their funds in cash. Despite members potentially being unfamiliar with each other, they are required to provide verifiable credentials like ID cards, income statements, and business licenses. To facilitate the fintech’s services, Digital eQub has partnered with the Commercial Bank of Ethiopia and with The Bank of Abysinnia. MoneyFellows in Egypt Founded in late 2016, MoneyFellows was launched also with the goal to digitise Gameeyas, which is the commonly known name of ROSCA in Egypt. To ensure security, every user is required to sign a legally binding contract following a thorough credit assessment. The process is fully digitised and offers multiple different options for online payment (including salary deduction for corporate employees). They serve more than 4 million users and have over 300 employees . Other fintechs There are several other fintechs that leverage ROSCAs, including Mapan, launched in Indonesia in 2011 and now having around 3 million users ; Sommos , founded in Bolivia in 2020 and expanded to Peru in 2023; and Tyms Africa ( formerly known as AjoMoney ), founded in Nigeria in 2021. The latter uses the ROSCA model to serve not only individuals but also micro-businesses, SMEs and Nigerians in the diaspora. The trend of digitising ROSCA extends beyond developing countries, with US-based fintech Money Pool distinguishing itself by adding a digital credit report to each member's profile to foster reliable online rotating pool funds . Potential challenges In recent years, there has been a growing trend of the emergence of fintech startups across various countries where their model is based on capitalizing ROSCAs’ potential by digitising the model, making financial services more accessible, convenient, and efficient. Except Sommos, most of these startups focus solely on the local market. Users can explore different groups and make selection based on their preferences for deposit amount frequency of contributions, and sometimes even location. These platforms offer group management tools, track payments, and record-keeping. Each fintech has a unique approach to ROSCA's digital transformation. Some offer a fully digitised experience, like Oraan in Pakistan. Others, like eQub and Digital eQub in Ethiopia, have partnered with banks to facilitate deposit collection. Moreover, some fintechs expand their products and offer financing to students and SMEs.    Currently, there is no available specific research on the challenges of digitising ROSCAs. However, enforcing payments in a digital setting can be challenging. Traditional ROSCAs are formed by close-knit community (group of friends, neighbours, relatives etc.) that rely on shared trust (as well as fear of reputational damage and being ostracized) to comply with regular payments, which might not translate seamlessly into a digital environment where the ROSCA members might be from different communities and locations. Fintechs mitigate this risk by requiring verification documents and income statements during registration like eQub in Ethiopia. MoneyFellows in Egypt takes it a step further and requires signing a legally binding contract, while the US-based Money Pool adds a digital credit report to each member's profile. Several of these fintechs have successfully established a solid ground and substantial user base, counting millions of users. The ongoing digital transformation of ROSCAs presents considerable market potential, suggesting the likelihood of more fintechs emerging in other countries to digitise ROSCAs. Thus, it unveils untapped resources and investment opportunities in these burgeoning local fintech start-ups. For any questions, please contact Dalia_ali1@outlook.com Photos: GOPA AFC About the Author Dalia Ali holds a Master's degree in International and Development Economics and is Certified Expert in Microfinance, as well as in ESG & Impact Investment. Over the past four years, Dalia has been involved in conducting extensive research on community-based traditional saving schemes. Additionally, she has been working with various consulting companies to drive the implementation of donor-funded financial inclusion initiatives across Sub-Saharan Africa and the Middle East. ________ [1] Anderson, S., & Baland, J. (2002). The economics of ROSCAs and intrahousehold resource allocation. The Quarterly Journal of Economics, 117(3). [2] Robinson, M. (2001). The microfinance revolution. Washington, D.C.: World Bank. [3] Habtom, G., & Ruys, P. (2006). Traditional risk-sharing arrangements and informal social insurance in Eritrea. Health Policy, 80(1), pp. 218-235. [4] Hevener, C. (2006). Alternative financial vehicles: rotating savings and credit associations (ROSCAs). Community Development Division of the Federal Reserve Bank of Philadelphia.