Message from the Executive Chairperson
CMF Nepal since its establishment in 2000 has been working in the promotion, growth and development of microfinance institutions in the country. The dimension of the microfinance has grown significantly in the last few years. In areas such as promoting social performance, client protection, financial inclusion, financial literacy, clean green finance, branchless banking, mobile banking, digital financing, and value chain financing are drawing attention for supporting the clients in the microfinance industries. A collaborative approach and networking with all stakeholders are standard practices at CMF Nepal.
It is a known fact that microfinance is a tool which addresses the issues of poverty reduction. At the same time the growing number of microfinance institutions and branches have also seen problems of over financing, multiple financing, under financing, and non-financing to some extent also. The coverage so far achieved through formal MFIs, cooperatives and other FINGOs doing microfinance activities are very encouraging. The larger share of credit going into the agricultural sector through microfinance in Nepal is also satisfying as about 70 percent of the population depends on it.
CMF Nepal is always committed to addressing the challenges in the microfinance industry through providing professional training programs, undertaking research work and doing strong advocacy to promote core businesses. Bringing all the national and international stakeholders together through organizing microfinance summits in Nepal has been very effective. CMF Nepal in the last 9 years has successfully organized four microfinance summits.
Nepal now has entered into federal system with seven provinces and recently all the elections at three levels have been completed. The microfinance institutions have also needed to adapt to the new environment with a different contextual framework. CMF Nepal also needs to respond to the new situation as well.
Through the experiences over the 17 years CMF Nepal has operated, it’s served as a vibrant institution as we continue to modify timely and suitable changes in the organizational structure. Since the 17th AGM, which was held in December 2017 in Kathmandu, a 7 member Board of Directors has unanimously decided to create the position of the Executive Chairperson with the purpose of making the institution more dynamic and effective to address the new challenges anticipated within the microfinance sector.
Poverty reduction is the main challenge in the country and MFIs are very important players to address this issue. Therefore, it is important to work collectively with all the stakeholders, including the government, the central bank, banks and financial institutions, development partners, cooperatives, FINGOs, various supporting national and international agencies, MFIs and all the beneficiaries. CMF Nepal is committed to work to address the issue of socioeconomic development of the poorest people in the country.
Jalan Kumar Sharma