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

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

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

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.