Refugees and displaced persons face immense challenges in rebuilding their lives, and a primary barrier is often a lack of access to formal financial services. Without a credit history, legal documentation, or assets, they are typically excluded from traditional banking systems. Microcredit for refugees is a specialized and adaptive approach that provides a vital lifeline, offering small loans that enable them to start or grow informal businesses, acquire essential assets, and become financially self-reliant. This financial tool not only provides capital but also serves as a crucial step toward economic integration and a dignified existence, transforming beneficiaries into active contributors to their host communities.

This course is designed to equip microfinance practitioners and humanitarian aid professionals with the knowledge and tools needed to develop and implement effective microcredit programs for displaced populations. You will learn how to navigate the complex legal and operational challenges, adapt traditional lending models, and build strategic partnerships that are essential for success. By focusing on a client-centric approach and leveraging innovative methodologies, this program will enable you to create sustainable financial solutions that address the unique needs of a highly vulnerable population, fostering their resilience and self-reliance.

Duration: 5 days

Target Audience:

• Microfinance institution (MFI) managers and executives
• Humanitarian aid and development professionals
• Financial inclusion and refugee livelihood specialists
• Social entrepreneurs and startup founders
• Government and policy advisors on refugee affairs
• Product managers for financial services
• Risk management and credit analysts
• Non-governmental organization (NGO) staff
• Researchers in financial inclusion and displacement

Objectives:

• Master the core concepts of microcredit tailored for displaced populations.
• Understand the unique legal and social barriers refugees face in accessing finance.
• Learn how to adapt traditional microfinance models to a refugee context.
• Grasp the importance of a client-centric approach and non-financial services.
• Understand the role of partnerships between MFIs and humanitarian organizations.
• Explore strategies for risk assessment without traditional collateral.
• Learn how to design products that meet the specific needs of refugees.
• Understand the role of digital financial services in reaching displaced people.
• Grasp the regulatory challenges and advocacy strategies.
• Analyze the social and economic impact of microcredit on refugee livelihoods.

Module 1: Understanding the Refugee Context

• The diverse profiles of refugees and displaced persons
• Common challenges: legal status, documentation, and movement
• Economic activities and livelihoods of displaced populations
• The link between financial exclusion and vulnerability
• The role of financial services in a humanitarian context

Module 2: Barriers to Financial Inclusion

• The lack of legal identity and accepted documentation
• The absence of credit history and traditional collateral
• Social and cultural barriers to accessing finance
• The perception of refugees as high-risk clients
• Navigating the trust deficit in new communities

Module 3: Adapting Microcredit Models

• The limitations of traditional credit-only models
• Group-based lending and solidarity models for refugees
• The role of social collateral and community-based lending
• Tailoring loan sizes, terms, and repayment schedules
• The importance of flexibility and adaptability

Module 4: Risk Assessment and Management

• The challenge of assessing creditworthiness without formal records
• Using alternative data points for risk assessment
• The role of loan officer relationships and peer monitoring
• Strategies for mitigating default risk in a volatile environment
• Developing a risk management framework for refugee portfolios

Module 5: Product Design and Development

• Designing products that meet the specific needs of refugees
• Loans for business startup, asset acquisition, and consumption
• The importance of savings products for financial resilience
• Integrating financial education and business training
• The potential of bundled services and non-financial support

Module 6: Digital Financial Services for Refugees

• The role of mobile money and digital platforms
• Using digital identity and biometrics for onboarding
• The benefits of cash transfers through digital channels
• Overcoming challenges of digital literacy and access
• The future of fintech solutions for displaced populations

Module 7: The Partnership Ecosystem

• The importance of partnerships with NGOs and UN agencies
• Leveraging partner data for client identification and vetting
• The role of grant-based funding and loan guarantees
• Building a collaborative and trust-based relationship
• Case studies of successful MFI-NGO partnerships

Module 8: The Regulatory and Legal Landscape

• Navigating diverse national regulations on refugee finance
• The importance of policy advocacy for financial inclusion
• Working with governments to accept alternative forms of ID
• Compliance with anti-money laundering regulations
• The role of international law in protecting refugee's financial rights

Module 9: Operations and Staffing

• Recruiting and training staff with cultural sensitivity
• The importance of communication and trust-building
• Adapting operational processes for a refugee context
• Managing a portfolio in both camp and urban settings
• The role of community mobilizers and peer mentors

Module 10: Measuring Impact and Learning

• Defining and measuring the impact of microcredit on livelihoods
• The difference between outputs, outcomes, and impact
• Using a a Theory of Change for program evaluation
• Collecting and analyzing data in a sensitive manner
• The importance of sharing lessons and best practices

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.