Advocates for International Development (A4ID) hosted a bespoke training seminar, in partnership with law firm Clifford Chance and microfinance social business Grameen-Jameel Pan-Arab Microfinance Ltd (GJ). The seminar was held in Tunisia and provided guidance to representatives from Microfinance Institutions (MFIs) throughout the Middle East and North Africa on the negotiation of loan agreements. The programme facilitated the sharing of financial knowledge and expertise of leading lawyers from the City of London with Microfinance Institutions, who often as a result of lack of resources are not able to access the high quality legal advice that they require.
Many of the MFIs supported by GJ have sought, or are seeking, external funding from commercial investors, facilitated by the partial credit guarantee fund managed by GJ. However, often these MFIs have little knowledge of the commercial terms of the agreements governing this funding and are in need of know-how and training on key issues and the fundamental aspects of loan agreements.
The session was provided pro bono by lawyers from Clifford Chance and is part of a course run by A4ID and GF on loan agreements. The training included a simulated negotiation and simultaneous translation to French and Arabic.
Heather Henyon of Grameen-Jameel Pan-Arab Microfinance Ltd commented:
“We hope that as a result of the training, the Microfinance Institutions involved will be better able to access commercial financing in order to meet the demands for capital needed to scale microfinance services across the Arab region. This training builds the expertise of microfinance practitioners to negotiate commercial financing terms and to ensure that the interests of the poor are being protected.”
Alison Chan of Clifford Chance commented:
“Due to cost constraints (and often the scarcity of relevant legal resources), microfinance borrowers seldom have access to legal advice and are often unfamiliar with the commercial terms of the agreements governing this funding. We were able to apply the skills and principles that we use in a purely commercial environment to this rapidly developing area of finance."
Annabel Johnson also of Clifford Chance added:
"Microfinance is making a tangible difference in parts of the world where it is really needed. This project is indicative of A4ID’s commitment to the development of UN Millennium Development Goal 8 and, from a personal perspective, was an inspiring programme to be involved with.”