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2008-05-13 - Microfinance workshop for Israeli NGOs

Interested in learning more about the relevance of microfinance to tackle poverty in Israel?

PlaNet Finance Israel is lanching in cooperation with Shatil, a non profit platform for social change in Israel a series of workshops to raise awareness about mirofinance as a relevant tool to tackle poverty in Israel for Israeli NGOs.

Today microfinance is at its nascent stage in Israel and we can notice a crescent interest for economic development projects, but most local organizations have a lack of awareness about the relevance of microfinance for a developed country.

PlaNet Finance Israel and Shatil are organizing 3 workshops held on May 19th in Tel Aviv, June 4th  in Beer Sheva and June 16th in Haifa. It will be the occasion to:

- introduce you microfinance (definition, historic, mechanisms,challenges....)

-present SAWA the microcredit project of KIEDF for Bedouin women

-create a dynamic to foster your involvment into microfinance.

For more information, you can contact:

Emilie Levy, PlaNet Finance Israel: elevy@planetfinance.org

Yosepha Tabib, Shatil: yosephat@shatil.nif.org.il

2007-12-10 - Report of the study on line

Go to the page "activities" and find the full report of the feasibility study

The study presents the potential, the constraints and the opprtunities to develop microfinance in Israel.

You will find at the end of the report some perspectives about the development of the sector.

For more information, please contact us : elevy@planetfinance.org or +972 (0)52 685 66 03

2007-11-28 - Feasibility study for microfinance in Israel

The first results and the perspectives to develop microfinance in Israel

The microfinance is at its nascent stage in Israel. In its role of facilitator for the development of microfinance in Israel, PlaNet Finance Israel carried out for the last six months a feasibility study to assess the potential for  the development of microfinance, with the generous support of Mr. Pierre Besnainou.

The main results are:

- An important potential demand: 60% of the interviewees would take a loan, if an institution offers them adapted loans, mainly for business related reasons (start up or business expansion), but also for personal needs (emergencies,personal consumption...).

- The lack of awareness about microfinance, as a relevant tool to tackle poverty in developed countries and about its best practices, which could be an obstacle to initiate sustainable microfinance programs.

- The existence of some mechanisms to support micro and small businesses, such as guarantee funds and direct lending programs, but with quite small outreach.

-The  lack of a friendly legal and regulatory framework to develop microfinance on  wide and sustainable bases.

 

PlaNet Finance Israel recommends working on three levels:

- The launch of a wide scale awareness campaign designed to inform a variety of actors about microfinance and its methodologies, as well as its potential for development in Israel, via seminars, conferences, advocating activities. 

- The implementation of a pilot project targeting poor populations built on partnership with local organizations in order to test microfinance methodologies to the specific Israeli context.

- The improvement of the existing mechanisms of the guarantee funds facilitating access to credit for small businesses.

In the next days, the full report will be posted on line.

For more information, contact us at: elevy@planetfinance.org 

2007-08-20 - Interview of Chagit Rubinstein

Microenterprise Initiative Director, KIEDF

There is no microfinance sector in Israel, in spite few microentreprises initiatives and guarantee funds.
It is important to notice the project initiated by Chagit Rubinstein to implement the first best practices a microfinance program in Israel targeting Bedouin women in the Negev.

1. What is your background and your interest in microfinance?
   I hold an MBA and have worked for 10 years with different Israeli export companies.
   Then, I decided to do something "more than business", enabling not only for companies to succeed, but also something which affects people. I have been an independent business consultant for 2 years when I was approached by a group of women wishing to start a feminist bank. This led to the creation of the first micro-enterprise organization in Israel targeting low income women - "Economic Empowerment for Women" (EEW). After the initiation of EEW, I went to study Microfinance for one year at American University, in Washington Dc, USA. During that year I interned at FINCA's headquarters in DC and at "Women's Initiative" in San Francisco. Back in Israel, I worked for three years with EEW, and then moved to KIEDF to do "real microfinance".
   
   
2. Why did you choose the Bedouin women, as the target population for the first microfinance program? Can you introduce SAWA briefly?
   I choose the Bedouin women because it is the poorest population in Israel and there were hardky any Micro-enterprise programs targeting this population. I thought we could implement a Microfinance program with them based on the group lending methodology developed in different developing countries.
   SAWA (together in Arabic),.is a Non Bank financing program, meaning that KIEDF gives loans to the beneficiaries without passing through the banks. The program is run from our new office in Rahat, by a team of five full time employees, all Bedouin women and is currently operating in five Bedouin villages (and city) - Segev Shalom, Kseife, Tel Sheva, Hura and Rahat.  In one year, we have about 270 beneficiaries, with an average loan of USD 900.
   The women develop home-based activities, such as raising animals, running small grocery shops, operating beauty parlours at home, and trading goods.
   The first loan recipients have just requested a new loan.
   
   
3. What are your views about microfinance in Israel?
   There are two obstacles on the way to developing a sustainable microfinance sector in Israel:
   - Only official banking institutions are allowed to collect deposits from customers
   - There is a ceiling on interest rates.
   If we want to develop microfinance, as a tool to tackle poverty and to support low income entrepreneurs, it is important to adjust the law and regulations concerning suppliers of financial services.
   I think that the interest of the banks and the government will be raised only when an alternative institution will give at least 2000 loans annually and thereby show the need and power of microfinance.
   
   
4. How have you made contact with PlaNet Finance Israel?
   KIEDF was in touch with Gil Erez, a Lawyer and the Co-founder of the Olivestone Foundation. concerning the creation of SAWA. Mr. Erez aquatinted us with two people from PlaNet Finance who were on a mission in the region, in Autumn of 2005.
   Since then, I have been in touch with several people from Planet Finance and when the Israeli office opened in 2006, we continued working with Emilie Levy.
   
   In the framework of SAWA, PlaNet Finance Israel supported us through:
   - The design of procedures Manual for SAWA
   -  Two training-sessions of the staff, held in Beer Sheva and Rahat. The training was conducted by Planet Finance's training team and dealt with work procedures and customers recruitment.

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