Swiss Capacitiy-Building Facility for Income and Employment Generation (SCBF)


Country/region Topic Period Budget
Global
Employment & economic development
Agriculture & food security
Informal banking & insurance
Agricultural financial services
01.12.2014 - 31.12.2019
CHF 10'400'000
Background

About 2,5 billion people do not have access to financial services and are often forced to rely on risky means to manage their money.

In all of SDC’s partner countries ‘Access to Finance’ constitutes a key bottleneck for poor and vulnerable populations to improve their livelihood by increasing their income generating activities and/or better managing their household cash-flow.

Low-income people  face high risks and need appropriate savings and insurance services.

Women are more likely than men to spend their income for the welfare of the family. They are also prudent entrepreneurs managing the majority of micro enterprises in many countries.

Smallholder farmers need to hedge the increasing weather risks of drought and flooding so as to raise their productivity and food security.

 

Objectives

Access to a range of client-oriented and cost-covering financial services (savings, insurance, leasing, credit and payments) is important for low-income households, farmers and micro enterprises to:

sustain and expand income generating activities,

build assets,

smoothen household consumption, and

reduce risks and vulnerabilities.

In addition, it is key for micro and small enterprises for to expand their operations and thereby generate income and employment at a larger scale.

The intervention focuses on partner financial institutions that cater specifically to the financial needs of smallholder farmers and low-income women. Access to financial services for low income women has proven most effective in improving the social welfare of their families in terms of better nutrition, health, and education; whereas such access by smallholder farmers increases food security, farm productivity and rural livelihoods.

 

Target groups

Direct beneficiaries: ca. 50 partner financial institutions with a proven social or financial inclusion mission; End beneficiaries: 722’000 low-income clients of the 50 partner financial institutions impacting on 3’800’000 low-income family members.

Medium-term outcomes

Increased well-being and livelihood of low-income people and smallholder farmers, through financial inclusion.

Results

Expected results:  

At least 722’000 low-income people and smallholder farmers use for the first time a particular formal financial service within three years upon completion of the ‘product up-scaling’ mini projects.

(i) At least ca. 45 out of the ca. 50 partner financial institutions (35 new and 15 of the current 40) offer client-orien-ted financial services offered responsibly to low-income people, smallholder farmers and MSMEs.

(ii) Services distribution channels are improved or newly developed by the partner financial institutions to meet the financial needs of low-income people, notably low-income women and smallholder farmers.

Ca. 10 partner financial institutions may raise ca. CHF 10 million, mainly from Swiss social private investors and the SCBF is co-funding at least 90% successful “product up-scaling” mini projects out of the ca. 50 of the partner financial institutions.

 


Results from previous phases:  

The review of the first phase rated the relevance of the SCBF as high and its effectiveness and efficiency as highly satisfactory regarding its initial 3 years of operation, with high probability in reaching its outreach goals.

Key outcomes are so far the following:

  • SCBF is fully institutionalised as Swiss foundation, with good governance and management systems.
  • SCBF private membership has increased from 5 to 13 members[1], and includes almost all key Swiss financial sector players.
  • About 46 ‘product up-scaling’ mini projects, 12 feasibility studies, and 8 financial education campaigns launched during the first phase very likely lead to more than 722’000 new expected clients.

[1] Fides, Swisscontact, Credit Suisse, Swiss Microfinance Holding, Zurich, Swiss Re, Allianz Re, Bamboo Finance, Syngenta Foundation for Sustainable Agriculture, Blue Orchard, KiWi, BFC, and StoneStep.

 


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Private sector
  • Swiss Private Sector


Other partners
  • ca. 50 partner financial institutions in SDC countries in the South, thereof at least 50% in SDC priority countries.
  • potentially all Swiss competence centres for financial
  • sector development, including insurers and reinsurers.
  • potentially all Swiss social private investors.

 

Coordination with other projects and actors

Synergies exist with SDC financial and private sector development projects and rural development project components by picking ‘the winners’ for massive up-scaling.

Budget Current phase Swiss budget CHF   10'400'000 Swiss disbursement to date CHF   10'492'630
Project phases Phase 2 01.12.2014 - 31.12.2019   (Current phase) Phase 1 01.12.2010 - 30.11.2016   (Completed)