On May 2, 2022, the Minister for Cooperation and Humanitarian Action, Franz Fayot, and the Minister of Finance, Yuriko Backes, paid a visit to the Maison de la microfinance in Luxembourg. The Maison de la microfinance is home to 8 microfinance and inclusive finance actors and institutions, namely the NGO Appui au Développement Autonome (ADA), the European Microfinance Platform (e-MFP), the Luxembourg Network of Inclusive Finance (InFine.lu), the investment company Investing for Development (iForD), the Microinsurance Network (MiN), the microfinance institution Microlux, the Social Perfomance Task Force (SPTF) and the Alliance for Financial Inclusion (AFI) .
Luxembourg, through the Directorate for Development Cooperation and Humanitarian Action of the Ministry of Foreign and European Affairs and the Ministry of Finance, actively supports the development of inclusive finance as an appropriate tool to contribute to the reduction and, term, the eradication of extreme poverty through sustainable economic, social and environmental development. Luxembourg has thus become an important player in this field and remains firmly committed to supporting NGOs and institutions in the sector.
The visit to the Maison de la microfinance on 2 May 2022 was an opportunity for Ministers Fayot and Backes to meet the officials involved in the field and to renew Luxembourg’s political and financial commitment to microfinance and inclusive finance.
The 8 organizations presented their objectives and the activities planned for this year such as the celebration of the 20th anniversary of the Microinsurance Network, the return to the face-to-face of the Midis de la microfinance et de l’inclusion financière, organized in Luxembourg by ADA with the support of InFiNe .lu and the participation of Minister Fayot in the first session. The European Microfinance Week will be held from November 16 to 18, 2022 in Luxembourg and will culminate with the European Microfinance Award on November 17, on the theme “Financial inclusion at the service of women”.
The visit ended with the signing of a new agreement with the institution e-MFP for a multi-year commitment from 2022 to 2026 as well as the signing of an extension of the agreement with the institution Social Performance Task Force (SPTF ) for the year 2022.
Since its inception in 2006, e-MFP has grown to over 130 members from across the financial inclusion industry. More than ever, Luxembourg is playing an essential role in the development of inclusive finance as a key tool to eradicate poverty and promote human development by increasing the access of low-income populations to quality financial services. Anchored through the support and commitment of the Luxembourg government, e-MFP is recognized as a leading player in the European financial inclusion space, which offers valuable opportunities for networking and thought leadership. for members and for the sector in general. The new agreement with the Luxembourg government for the period 2022-2026 guarantees the necessary financial support for the implementation of e-MFP’s new strategic plan.
The SPTF, created in 2005, has the mission of contributing to the establishment of a responsible and transparent financial services sector on its results. It has developed and promotes standards and good practices in responsible inclusive finance. Its social performance management tools are used by organizations and businesses to define, measure and monitor their social goals and put customers at the center of their attention.
The original agreement of December 21, 2018 expired in December 2021, this one-year extension will allow an external evaluation to be carried out with a view to defining the framework for future cooperation between the SPTF and the Ministry of Finance and the Department of Development Cooperation and Humanitarian Action of the Ministry of Foreign and European Affairs.
The Minister for Cooperation and Humanitarian Action, Franz Fayot, underlined: “Over the past two decades, Luxembourg Cooperation has actively supported the development of inclusive finance as a tool for promoting sustainable development and eradicating poverty. Today, Luxembourg has become a leading international player in this field with a diverse ecosystem and we remain strongly committed to supporting our partners working in this sector.”
Finance Minister Yuriko Backes said: “Thanks to the collaboration of all players in the financial market, Luxembourg has developed remarkable expertise in microfinance. Today, more than 50% of all Global assets in the field of microfinance are registered in Luxembourg. To continue this momentum, solid partnerships with committed players are essential.” She added: “Digitalization is one of the major keys to the success of inclusive finance. It makes it possible to offer new products and services that meet the needs of the most disadvantaged. A more digital and innovative microfinance also contributes directly to the ’empowerment of women by exerting a beneficial influence on their decision-making power.
Communicated by the Ministry of Finance / Directorate for Development Cooperation and Humanitarian Action