HOME > Projects > Improving Financial Access of Small Scale Farmers in Mindanao

Improving Financial Access of Small Scale Farmers in Mindanao

The project provides technical assistance for the Microfinance Institutions in Mindanao, Philippines in order to reinforce the financial access to the small-scale farmers who have been left out from the financial services. 

This project is commissioned by JICA through its grassroots technical assistance program. It aims at building the organizational capacity of microfinance institutions (MFIs) in the Philippines, especially targeted two MFIs in Mindanao, one of the poorest areas in the Philippines.

Traditional microfinance institutions offer financial product mainly targeted to the poor households involves in commercial activities, not agriculture. The project aims to improve livelihood of the small-scale farmers in Mindanao through expanding financial access to the targeted population.

PFJ is operating the project together with its counterpart the Mindanao Microfinance Council (MMC). MMC is a microfinance association which has been working to further the development of MFIs in Mindanao since 2004. After the project ends, MMC will transfer the technical assistance gained from this project to other MFIs in their network in Mindanao on their own. 

The main components of the project are to assist MFIs to:

  1. design and introduce agricultural microfinance products which are suited to farmers whose incomes fluctuate according to the season
  2. diffuse financial literacy training for borrowers to control and operate their household finance more wisely
  3. build up the foundation of the MFIs in order to implement Social Performance Management (SPM), which assists them to achieve their social mission together with their financial goals.

PFJ selected two MFIs at the end of 2011: Aakay Ang Milamdec Microfinance Foundation, Inc. (an NGO based in Cagayan de Oro) and Bansalan Cooperative Society (a cooperative based in Davao del Sur). 

Page Top