SAMN

South Asian Microfinance Network

 South Asia with population of nearly 1. 4 billion is
home to over one fifth of the humanity. According
to the World Bank, Poverty Head Count ratio in
south Asia stand at 73.9% and 40.3% of population
calculated at PPP (2005 prices) USD 2/day and USD
1.25/day respectively

Background
The South Asian Microfinance Network (SAMN) is a regional microfinance network aiming at enhancing
capacity, financing and regional dialogue in the microfinance sector of south Asia. SAMN governance is
composed of leading MFI Associations from the countries of the region along with the Agency for Technical
Cooperation and Development (ACTED). SAMN also partners with MFIs, Investors, Banks and other key
microfinance stakeholders to fulfill its objectives.

The early foundation of SAMN was laid by ACTED, a French INGO along with ACCESS Development Services
and other regional and global microfinance stakeholders in 2008. In a couple of years since its inception,
SAMN has developed as the only credible and representative regional network in south Asia bringing together
leading national MFIs networks / associations of the region as members to lead, manage and govern the
SAMN.

The current SAMN members, each represented with a seat on the SAMN Board of Directors, are:
In Afghanistan: Afghanistan Microfinance Association (AMA)
In Bangladesh: Credit and Development Forum (CDF)
In India: ACCESS Development Services (ACCESS)
In Nepal: Centre for Microfinance (CMF)
In Pakistan: Pakistan Microfinance Network (PMN)
In Sri Lanka: Lanka Microfinance Practitioner’s Association (LMFPA)
Host member: Agency for Technical Cooperation and Development (ACTED)
 SAMN’s Rationale
Challenge 1: Demand for financial resources far exceeds the existing supply in the region. The present outreach of
microfinance in the region is still very low estimated at less than 10% of the market
SAMN response: By facilitating technical cooperation and financing into tier II MFI, SAMN aims at stimulating the
MFIs to scale up, thereby increasing their outreach and impact

Challenge 2: Existing microfinance outreach, portfolio and investment is concentrated in a small number of tier I
MFIs constraining the sector’s sustainable growth
SAMN’s response: SAMN through technical cooperation and financing facilitation for tier II MFIs aims at broadening
the pool of well managed MFIs

Challenge 3: South Asia receives only 10% of global microfinance investment compared to 43% for Central Asia
and Easter Europe and 35% for Latin America and Caribbean
SAMN response: Besides working with MFIs to improve their investment readiness, SAMN works at investors level
to apprise them of investment potential and options in the region broadly and in tier II MFIs particularly.

Challenge 4: There is considerable commonalities as well as differences in the microfinance sector within the
region, implying need and opportunity for collective response to common challenges and learning from difference.
However, the microfinance sector has not been able to adequately benefit and capitalize from the presence of
regional experience, expertise and knowledge due to constrain on mobility and information gaps
SAMN response: Through its regional character and membership of national networks, SAMN aims to address the
gaps in regional exchange towards the improved practice and policy

Vision & Objectives

SAMN vision is
‘To enhance financial inclusion for low income population in the countries of south Asia’
SAMN will achieve this through a variety of partnerships with microfinance stakeholders notably with retail
microfinance providers that deliver a diversified range of sustainable financial services to the low income
population to build their financial and social capital.

To achive its vision, SAMN has following objectives:

a. Enhance the quality and outreach of microfinance
in South Asia by building strong, sustainable and
scalable institutions through technical assistance
and financing facilitation inputs to growth oriented
MFIs
Through SAMN partnership, each institution:
improves and enacts key systems and policies
meets financial and efficiency performance standards
as per international benchmarks
provides client-focused products and services
reports accurately and transparently on its financial
and social performance
has access to a sufficient and diverse set of financing
on a sustainable basis.
Over 58% of adult b. Promote best practices and exchange through the

population in south Asia

creation of a regional space for microfinance in
south Asia
i.e. 612 million do not SAMN aims to become:

use financial services

Source: Honohan 2008, Human Development Index, World Bank
a regional information hub for best practices, sector
data, benchmark, regulation, investment deals, contact
information among others
a viable and sought after platform to facilitate exchange.
Focus Area
The SAMN has three focus areas as:

Technical Cooperation
The activities under this focus area target a select
number of tier II MFIs that partner with SAMN to
enhance their investment readiness, improving
their practices, reporting and transparency, thereby
making them more attractive for Investors. SAMN At present 24 partner
provides targeted and high quality technical inputs MFIs with SAMN
through SAMN team, partnerships or outsourcing
contract with external Technical Assistance (TA) represent a client base
providers and peer learning. Collation at national/ of over 2 million and
regional level considerably reduces the cost and
provides a more effective learning environment to Loan Portfolio of USD
participants through mutual exchange. 250 million
Facilitating Financing
SAMN assists partner tier II MFIs in linking with local
and international financial institutions and investors
to meet their financing need. Besides one to one
contact, SAMN organizes an annual Investment
Fair where partner MFIs have opportunity to
make direct contact with the financial institutions
and Investors. With its diverse pool of 24 partner
MFIs in the region and strong TA association
with MFIs, SAMN offers investors and financial
institutions different investment options to meet
their financing criterion and reduce the cost and
risk of the transaction. On investor side, SAMN
provides investors with all information pertinent
for investment such as country context, country
microfinance sector, details on partner MFIs and
risks among other things and link investors with platform to facilitate exchange among microfinance
appropriate contacts such as banks, legal and tax stakeholders.
advisory agencies and MFIs effectively to realize
the investment. Regional exchange is facilitated through Knowledge
Management Services such as Information Hub,
Creating Regional Space for Microfinance Publication of Investment Guidelines, Investors and TA
SAMN, through its membership of leading national Providers Directory, Background and Focus notes, SAMN
microfinance associations, is uniquely placed Bi-monthly Update, SAMN Quarterly Newsletter and
to provide platform for regional exchange and Website. Additionally SAMN organizes regional events
dialogue. Through this dimension SAMN aims to on different themes bringing together a diverse range of
become a regional hub for collecting and widely microfinance stakeholders from the region and beyond
disseminating information on microfinance, for meaningful exchange through workshops and focus
including best practices, sector data, benchmark, group discussions. When requested and necessary, SAMN
regulation, investment deals, contact information focuses on building capacity of its member through direct
among others and a viable and sought after inputs as well as peer learning.
Partnership with Tier II MFIs
SAMN partners with around 30 MFIs at a particular time frame to ensure a sizable pool for investment,
optimum resource use and quality delivery of services. MFIs are selected for partnership by a MFI Partnership
Advisory Committee based in Paris and consisting of ACTED , its network and Investors according to stringent
criteria and expected to commit for three years as well as contribute a yearly partnership fee. Through this
partnership, SAMN works closely with MFIs to provide continuous support to meet their technical assistance
and financing needs. The depth of interventions across two verticals depends on the need and level of MFI.

According to MicroRate
survey of 78 Microfinance
Investment Vehicles in
2010, less than 10% of this
investment comes to the
south Asia compared with
43% for Eastern Europe
and Central Asia and 35%
for Latin America & the
Caribbean

Partnership with Microfinance Stakeholders

The SAMN continuously develops and welcomes strategic partnership with Investors, Banks and other
microfinance stakeholders to bring various expertise and domain knowledge on board for comprehensive
and cost effective services and to leverage its action.
 Host

Members

B5/18, Safdarjung Enclave

New Delhi 110029, India
+91 11 4135 4861
info@samn.eu
www.samn.eu Photo credits: ACCESS, Agro Microfinance and ACTED