Poverty Reduction

Group observation of a microfinance institution

Microfinance (financial services for the poor) is in the spotlight these days. To share experience gained in Asia with Africa, JICA provides training for government officials and staff of private financial institutions in Asian and African countries.

Around 50 People Participate in Third Country Training

Although it was considered difficult to have private-sector business come on board, successful cases of microfinance in certain countries in Asia have driven increased interest in Africa in recent years.

JICA training aims to share experience in provision of services gained in Asia with government officials and staff of private-sector financial institutions in Africa to give the poor access to financial services that provide credit, saving and transferring money and insurance.

Around 50 people from Asia and Africa took part in Third Country Training in Malaysia that involved seminars on microfinance cases in Asia and Africa. It is important that private financial institutions in addition to public institutions start providing microfinance in order to ensure that the poor have stable access to easy-to-use loan and saving services. The role of government is indispensable in encouraging participation by private financial agencies to protect poor people seeking to use financial services. The training includes lively discussion on the role of government and central banks in microfinance as well as the sharing of experiences.

JICA supports an initiative in which government and local peoples' forest management associations signed Provisional Forest Management Agreements concerning forest protection and management as well as the acceptance of the traditional forest resource use rights of local communities. The project aims to ensure the livelihoods of local people and keep the forest well managed for sustainable use.

Provisional Forest Management Agreements and Synergistic Effects of Farmer Field Schools

JICA supports efforts in priority forest areas of Ethiopia that aim to both guarantee a stable livelihood for local people and sustainable forest management. Provisional Forest Management Agreements were signed between the government and local peoples' forest management associations. As part of the agreements, government recognizes the usage rights for wild coffee growing under the forest canopy that local communities have traditionally collected as well as the right to live in the priority forest areas. In return, local communities must protect and manage the forests as stipulated by the provisions of the agreement. To date, 93 forest management associations have concluded provisional agreements with the Oromia Regional Government and formulated plans for the community-driven management and use of the forests. Activities are currently being implemented in line with plans.

Forest where coffee grows naturally

In addition, certification from the international NGO Rainforest Alliance has been acquired, enabling a further 15-25% to be added to the market price for coffee collected from the forest. Cooperatives have been formed to purchase and ship the coffee, which has increased revenues for local citizens.

Each forest management association has set up a Farmer Field School aimed at spreading agricultural technology. Participants attend weekly sessions for a year to learn methods for vegetable cultivation using compost and how to nurture young fruit trees. Over 4,500 farmers have graduated from the schools and are putting into practice the farming techniques learned.

A Grassroots View

Mohammed, Project Manager, Oromia Forest Enterprise Supervising Agency

Previously, local people were loggers of the forest and forestry companies were the regulators of illegal logging. This has changed with the transfer of authority for forest use and management to the forest management associations, which has deepened mutual understanding of each party's role and prompted cooperation on forest management. I am confident that active participation by association members will protect the precious natural resources of the forests into the future.