Upgrading micro-finance skills
5 May 2003
An innovative training project initiated by the Banking Sector Education and Training Authority (Bankseta) aims to instill professionalism within the micro-finance industry, to the benefit of lending institutions, borrowers and the economy as a whole.
The Bankseta Micro-Finance Skills Project, funded through the National Skills Fund, was set up in May 2002 to provide training for micro-finance institutions and their borrowers.
"The South African micro-lending industry plays a key role in bridging the gap between South Africa's sophisticated financial sector and the emerging market population," said Bankseta CEO Frank Groenewald.
The micro-finance sector, which has grown significantly since the 1970s, provides banking services to small, medium and micro enterprises (SMMEs) as well as to individuals.
"While this industry has enjoyed unprecedented growth in recent years, it has also borne the brunt of negative publicity, due partly to the
perceived exploitation of the poor by a few unscrupulous players, but mainly because of a lack of skills and training among those employed within the sector," Groenewald said.
Bankseta has established a steering committee to provide overall strategic direction for the three-year project. Its objectives include building professionalism among institutions, and supporting strategic SMMEs and individual borrowers so that they develop sound legal, financial and business skills.
"Since May 2002 we have set up appropriate stakeholder forums, identified major skills gaps in the sector, and drafted a curriculum framework to fill those gaps," said Groenewald. He said the committee had also identified the criteria for selecting learners, sourcing trainers and agreeing on quality assurance.
The delivery of training to micro-finance institutions will gather momentum in May with the hosting of consultative forums in three key regions - Gauteng, KwaZulu-Natal and the Western Cape -
that have the largest number of registered microlenders.
Thereafter, a pilot training programme will focus on skills development around six key areas identified by stakeholders: client service; risk management; loan book management; marketing; cash management; and staff management.
"It is vital that stakeholders in the micro-finance sectors attend the upcoming consultative forums, as the project is now moving towards the delivery of training. These forums create the perfect platform for micro-lenders to realise the value this project holds and how it will benefit them, their clients and the economy," said Groenewald.
The forums will take place at the following venues:
Durban
5 May 2003
10am – 1pm
Holiday Inn
63 Snell Parade
Cape Town
8 May 2003
9am - 12 noon
Holiday Inn Garden Court
Newlands
Johannesburg
13 May 2003
8.30am - 12 noon
Randburg Towers Hotel
265 Main
Avenue, Randburg
For more information, visit the Bankseta website.
Source: Banking Sector Education and Training Authority
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