Future of the ROI Action Group

What topics to work on in 2015/16

Exchange and exploration of (existing) information and ideas for 2015 and 2016:

1. Development of hybrid financial instruments for farmers and/or Producer Organisations
2. There is a need for exchange of research by European parties in the sector and share this with partners in the field, carry out an inventory make it practically available
3. Create an inventory of existing tools, followed by check for gap in availability:
   1. Work on know-how on how to implement tools in a cost-effective way in order to remain sustainable (because of e.g. higher operational costs)
   2. Which operational tools are available, see also point 10
   3. Idem for tools to assess/rate farmers (follow-up on current research by NpM/Agriprofocus/Terrafina Microfinance)
   4. Idem for tools for due diligence (follow-up on current research by NpM/Agriprofocus/Terrafina Microfinance)
4. Follow-up on current research by NpM/Agriprofocus/Terrafina Microfinance: how to deal with often perceived risk: what is needed by MFIs to improve services?
5. Understand the broader spectrum of financial instruments that farmers possibly use to invest (e.g. only credits, or also savings, etc.)
6. Explore the role of ICT
7. Explore the topic of globalisation of farming activities

Coordination:

8. Translation of tools/training materials into French
9. Organise webinars and invite MFIs from the south
10. Create (sub-) working groups and best practices based on the exchange of information on operational tools

Research:

1. Research on causes of both success stories & failures in providing financial services to rural clients incl. subsequent focus on solutions (in order to suggest input/ideas for investment for MFIs/FIs)
2. Further analysis on risk:
   1. Zoom in on risk of providing financial services (especially social and environmental risk exposure for MFIs)
   2. Zoom in on geographical diversity (e.g. 15 countries on different continents)
3. Need for specification environmental risk analysis.

Remarks:

• With regard to point 3: websites available that include tools:
  • http://www.ruralfinance.org/
  • http://www.microfinancegateway.org/library?f[0]=field_publication_type%3A20
  • http://www.microsave.net/ 
• With regard to point 10: prevent duplication of existing materials on FAO Rural Finance Learning Centre).
• With regard to point 12 A) and point 13: there are two environmental and social risk management toolkits available on https://www.fmo.nl/esg-tools
• Coordination of ROI AG in 2015/2016

Patricia Richter (ILO) and Hermann Messan (UNCDF) have offered to coordinate the activities of the ROI AG in 2015/16.