A strong and transparent governance framework is the backbone of any sustainable microfinance institution (MFI). While the focus is often on the mission of poverty alleviation and financial inclusion, a weak governance structure can expose an institution to significant risks, including mismanagement, fraud, and a loss of public trust. Microfinance policy and governance frameworks are a comprehensive set of rules, policies, and procedures that ensure an MFI is managed responsibly, ethically, and in the best interests of its clients and stakeholders. This system provides the necessary checks and balances to guide decision-making, manage risks, and ensure long-term financial and social sustainability.

This course is designed to provide a comprehensive and practical guide to designing, implementing, and strengthening governance frameworks in microfinance institutions. You will learn the strategic and operational considerations required to build a robust system of oversight, from defining the roles of the board and management to establishing effective internal controls. By mastering the principles of good governance, you will be prepared to lead your institution with integrity, ensuring it remains accountable, transparent, and resilient in a competitive and complex environment.

Duration: 5 days

Target Audience:

• Microfinance institution (MFI) managers and executives
• Board members and directors
• Internal audit and compliance professionals
• Legal and governance specialists
• Social entrepreneurs and startup founders
• Risk management professionals
• Regulators and policymakers
• Development and financial inclusion practitioners
• Consultants in organizational management

Objectives:

• Master the core concepts of microfinance governance.
• Understand the strategic role of a board of directors.
• Learn how to design a robust policy and procedural framework.
• Grasp the complexities of effective internal controls.
• Explore strategies for managing risk at the board level.
• Understand the legal and regulatory frameworks for governance.
• Learn to conduct a governance self-assessment.
• Understand the importance of a well-defined code of ethics.
• Analyze successful case studies of good governance in the sector.
• Develop a strategic roadmap for strengthening governance in your institution.

Module 1: Foundations of Microfinance Governance

• What is governance and why is it critical for an MFI
• The difference between governance and management
• The roles and responsibilities of the board and senior management
• The importance of a clear and transparent structure
• The link between good governance and financial sustainability

Module 2: The Board of Directors

• The ideal composition and size of a board
• The role of a board in setting strategy and vision
• The importance of a well-defined board charter
• The duties and liabilities of a director
• The role of board committees (e.g., audit, risk, governance)

Module 3: Policy and Procedures

• The importance of a comprehensive policy manual
• The process of developing and updating policies
• The role of policies in guiding decisions and managing risk
• The difference between a policy and a procedure
• The importance of a well-defined approval process

Module 4: Risk Management and Oversight

• The role of the board in overseeing risk
• The importance of a risk appetite statement
• The link between governance and enterprise risk management
• The role of the audit and risk committee
• The importance of a robust internal control system

Module 5: Internal Controls and Audit

• The key components of an internal control system
• The importance of segregation of duties
• The role of a strong internal audit function
• The link between internal audit and external audit
• The importance of a well-defined audit plan

Module 6: Legal and Regulatory Frameworks

• The legal status of an MFI
• The importance of a well-defined legal framework
• The role of a legal and compliance team
• The importance of reporting to regulators
• The link between a strong legal framework and public trust

Module 7: Ethics and Accountability

• The importance of a well-defined code of ethics
• The role of a whistleblower policy
• The importance of a transparent and accountable culture
• The link between a strong ethical framework and reputation
• The role of a grievance redress mechanism

Module 8: The Governance Ecosystem

• The role of stakeholders in governance
• The importance of a well-defined communication plan
• The role of a public-private partnership
• The importance of a dialogue with regulators
• The role of an industry association

Module 9: Board and Management Performance

• The importance of a regular board and management assessment
• The role of a well-defined performance management system
• The importance of a clear succession plan
• The link between performance and a mission-driven culture
• The importance of a well-defined feedback loop

Module 10: The Future of Governance

• The role of technology in governance
• The importance of a data-driven approach
• The role of a digital governance platform
• The link between governance and a more resilient business
• New trends and innovations in the sector

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.