“Microfinance, despite its modest name, has macro relevance and huge potential,” said EIB President Werner Hoyer as he opened the MFC conference held in Budva, Montenegro, on 24 to 25 May 2023. MFC is a microfinance network representing 115 members from 37 countries in Europe and Central Asia.
The conference was an occasion to mark MFC’s 25th anniversary. “The EIB Group is proud to have played an active role in this growth story, particularly through the European Investment Fund, our specialist SME subsidiary,” President Hoyer added.
The conference was also an opportunity to reflect upon the experience gained and the lessons learnt before embarking on the next 25 years in a world facing significant risks, including climate change, technological challenges, the uncertain future of work, political conflict and global insecurity.
Over the last 25 years, MFC has established itself as a key advocate for the microfinance sector, building on an extensive network of microfinance institutions, practitioners, experts and stakeholders.
Microfinance holds an immense potential for shaping a more inclusive, cooperative and sustainable world in the coming years.
The conference reaffirmed that subsidised funds will be required to make this happen — and not only from the European Union.
This can take various forms, such as grants, interest rate subsidies, preferential instruments (including loans and guarantees), and collateralisation of microfinance bonds to enable access to cheaper funding.
Preferential financing instruments tailored to young European entrepreneurs, particularly in underdeveloped regions of EU member and candidate countries, can play a vital role in supporting these young people with entrepreneurial aspirations, who often come from a migrant background. The conference also made it clear that microfinance practitioners need to adapt to fast-changing technologies, implementing and integrating digital solutions to make sure that micro, small and medium businesses can compete in the platform economy.
MFC’s 2024 conference will be held in May 2024 in Kraków, Poland.
The Institute complements the activities of the European Investment Bank Group (EIB and EIF) in the area of microfinance.
