Reconstruction and development of the microfinance sector in Nanggroe Aceh Darussalam (NAD)
PROJECT DESCRIPTION
In the wake of the devastating Tsunami in Aceh, Indonesia, the GTZ launched a development program that included a crucial microfinance component. Many Microfinance Institutions (MFIs) in the region, already grappling with institutional weaknesses and inefficient financial services, were hit even harder by the disaster. Recognizing the urgent need for support, ICON-INSTITUT was brought in to assist in revitalizing these institutions.
ICON’s approach focused on two key areas. First, it worked to strengthen the capacity of the MFIs by helping them scale up their operations through institution building, recapitalization, and refinancing. This effort aimed to improve the financial stability of these institutions so they could better serve the affected communities.
Second, ICON provided expert guidance to the Banda Aceh branch of the Bank of Indonesia, offering professional advice on reconstruction efforts. This collaboration was essential in ensuring that financial services in the region could recover and adapt to the challenges left in the wake of the Tsunami. Through these targeted interventions, ICON sought to empower the MFIs and support the broader reconstruction of Aceh’s financial landscape.
(4402808)
PERIOD
28/11/2005 - 31/12/2008
COUNTRY
Indonesia
EXPERTISE
Economic and Employment Promotion
VOLUME
1.050.000 €
FINANCING
Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)
CLIENT NAME
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH