5 yr strategic business plan 10.08.14 - 1 Islamic Microfinance Five Year Strategic Business Plan(2014-2019 Expanding Financial Inclusion in Bangladesh

5 yr strategic business plan 10.08.14 - 1 Islamic...

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1 Islamic Microfinance Five Year Strategic Business Plan (2014-2019) Expanding Financial Inclusion in Bangladesh through Islamic Microfinance” Submitted to IRW Revised: 10.08.2014 Submitted by Islamic Relief, Bangladesh House-10, Road-10, Block-K Baridhara, Dhaka, Bangladesh Contact Person Shabel Firuz, Country Director Contents
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Executive Summary ......................................................................................................................... 3 Strategic Vision for Islamic Relief Bangladesh Microfinance Programme ................................. 3 Background and present position of IRB’s MF Interventions ..................................................... 4 Five Year Business Plan .................................................................................................................. 6 Budget Summary: .......................................................................................................................... 13 Narratives of IRB’s Institutional Microfinance ‘5-year Strategic Business Plan’ ...................... 14 Target beneficiaries/ clientele and Market ................................................................................... 14 IRB’s Islamic Microfinance geographical coverage: ................................................................... 15 Financial products and services: ................................................................................................. 16 Profit Rate Policy for investment (Bai-Murabaha): ...................................................................... 16 Groups, methodology and delivery mechanism: ........................................................................ 16 Monitoring and Internal Controls .................................................................................................. 18 Strategy to grow: ............................................................................................................................ 18 Funding: .......................................................................................................................................... 19 Operations ...................................................................................................................................... 20 Staffing: ........................................................................................................................................... 20 Growth and Composition of Staffing Requirements ................................................................... 21 Systems and Policies ..................................................................................................................... 21 Human Resource Development Strategy ..................................................................................... 22 Risk and assumption ..................................................................................................................... 23 Efficiency and productivity ........................................................................................................... 24 Financial Projection (In GBP) ........................................................................................................ 25 Diagram of the business plan 2014 -2019 .................................................................................. 28 8 Page 2 of 28
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Executive Summary Islamic Relief Bangladesh started its microfinance programme in 1996. These small scale microfinance projects expanded and since 2005 the programme has been operating through an institutional microfinance approach utilizing Islamic Microfinance principles. IRB applied for its microfinance business license to Microcredit Regulatory Authority (MRA) but the license from MRA was not possible due to gaps in IRB’s governance/registration status and profitability issue. However, IRB will reform its governance, update registration status and make an effective business plan to reach its profitability within three years of its microfinance operations for seeking re-registration (MRA license) of its I-MFI to assist in the development of the Islamic Microfinance sector in Bangladesh and provide a demonstration model of Islamic Microfinance through Institutional approach. Since 2012 IRB has been piloting Self Help Group (SHG) an alternate approach to making low-cost finance available to the ultra-poor. IRB has been strategically developing, researching and piloting Qard-al Hasana financing using the Self Help Group (SHG) model. IRB confidently promotes Qard al-Hasana through SHG approach on a sustainable basis as groups manage the micro financing by themselves without any operational cost and are the possessors of the loan revolving fund, therefore this model seems to be effective. In the first phase of PPA-PROVED (2013-2014), IRB took different initiatives in promoting Islamic Microfinance across Bangladesh by organizing trainings for capacity building of local I-MFIs/MFIs and NGOs, commissioned research works on I-MF in Bangladesh, organizing national seminar with wider stakeholders and developing I-MF networking for relationships building with related government body, selected local MFIs/I-MFIs, academics, and Private Islamic Banks.
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  • Spring '11
  • Lazario
  • Finance, Business, Poverty, ........., Islamic Microfinance

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