Fadugu Founder & CEO Leah Mansaray was invited to participate at INAFI International annual Global Conference on Microfinance, Remittances and Development to share their commitment and experiences on remittances and microfinance as a tool for poverty alleviation, in Africa and worldwide.

His Excellency Yayi Boni President of the Republic of Benin, kindly accepted his Government to host this event, under the Ministry of Microfinance, Small and Medium Enterprises, Women and Youth Employment. The theme of the Conference was : Alternative Financial Institutions as a Platform for Harnessing Remittances, Diaspora Philanthropy and Investment for Sustainable Development.

Among other core objectives, INAFI through its programmes and activities is promoting sustainable development by trying to ensure complementary cooperation and services between microfinance institutions and migrants associations through remittances. The objective is to contribute to the creation of an enabling environment for sustainable development. Indeed, the migration phenomenon and its emerging potentials for development has motivated INAFI to pursue a program linking alternative financing to remittances, Diaspora philanthropy and development. INAFI has already organized two global conferences on the role of microfinance in migration, remittances and development: in 2005 in Zacatecas, Mexico; and in 2006 in Tagaytay City, Philippines. Therefore, the principal objectives of the Benin Conference will be: to bring together migration and development stakeholders as well as microfinance practitioners and policy makers such as Government representatives to share experiences and best practices, gather commitments and responses from governments, multilateral development agencies and the private sector; enhance global policy, action plan and finally, identify and develop appropriate microfinance products for migrants families and their immediate communities.

In response to the call for Diaspora Engagement by the Executive Secretariat of the International Network for Microfinance Institution at the 2007 Global Forum Fadugu is launching the Fadugu Fund, our Remittance Matching Program with the sole aim of linking remittances sent with microfinance institutions to create jobs.

Launching on the 1st of January 2008, for every transaction completed through our website we will donate a dollar to the Fadugu Fund – The fund will be accumulated in a high interest deposit account. At the end of the 12 months we will lobby private organisations, development and government institutions to match the funds contributed by Fadugu on behalf of its migrant remittance customers.

On maturity the fund will be used as start-up grants to fund small and medium enterprises in the recipient country, as the old adage goes “charity begins at home” we are launching the program in Sierra Leone but hope to extend to other countries as we expand our operations into different regions.

We have partnered with Afford-UK to provide the business support through its Remittance Plus Program. In Sierra Leone Afford will be responsible for identifying and screening potential businesses in preparation for grant application and grooming them through the grant program. The businesses we fund with start-up grants will be monitored through a 3 year graduation program.

All business will go through a pre-funding business training course, then signed-on as customers of a microfinance Institution, at the end of the 3 year program all clients should have graduated on to become commercial bank account holders.

Whilst the funds mature, customers will have the option of directly funding small businesses that we will profile on our website.

Research conducted by AfricaRecruit suggests that substantial amounts of money Africans in the UK remit home is for business purposes. Amounts vary in the range from an average of $50-$300 a month. Anecdotal evidence gleaned through regular interaction with such investors points to considerable dissatisfaction with the performance of these investments. A common scenario is that diaspora investors are supporting relatives & friends to establish ventures at home. However, these budding entrepreneurs often lack the full range of skills & support necessary to succeed in their venture. Common mistakes include failure to plan the business & failure to take into account all the necessary costs associated with the business resulting in cashflow crises & under-investment over time.

Remittances Plus™ provides business advice & support to the remittances recipient while involving the investor. AFFORD’s existing & growing network of business development/support centres & partners will form the basis of provision of such support linking the UK & different African countries.

In addition to being directed towards known recipients by the remitter, Remittances Plus™ also enables a remitter/investor to invest their money in a small business venture identified by AFFORD’s or partners’ operations on the ground in target countries.

By sending money home to Sierra Leone through Fadugu, an innovative online money transfer operator serving a worldwide community of remitters to Sierra Leone (with more countries coming on-stream in 2008), & opting for Remittances Plus™ business support for the recipient, senders win on two fronts. First, because this is money for investment in an enterprise that will support the country’s recovering economy, Fadugu shall offer a free money transfer service. Second, the sender gains reassurance that the recipient shall have access to high-quality, affordable business support to ensure that the money goes into a venture that is well-thought-through & planned & thus more likely to succeed.

Furthermore, by working with a network of financial service providers on the ground in recipient countries, AFFORD & Fadugu shall ensure that remittances recipients have every opportunity to bank their money & have access to a full range of other important financial services.

In the first instance, AFFORD, Fadugu, and Ghana-based microfinance institution, SINAPI ABA TRUST intend to offer Remittances Plus™ services of investment targeted at a recipient known by the remitter & investment targeted at an entrepreneur identified by SINAPI ABA TRUST.

Remittances Plus™ - helping senders & receivers make their money create the jobs Africa needs…

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