ADB will provide a senior secured loan of up to $50 million (or CNY equivalent) with a 3-year tenor to CFPA Microfinance Management (CFPAMM) in the PRC. The proposed loan will fund CFPAMM's microfinance operations in counties designated by central and local government as poverty stricken areas.
|Project Name||Microfinance in Poverty-Stricken Counties|
|Borrower/Company||CFPA Microfinance Management
|Country||China, People's Republic of
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Finance / Finance sector development
|Gender Equity and Mainstreaming||Gender equity|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Doukidis, Doukas|
|Description||ADB will provide a senior secured loan of up to $50 million (or CNY equivalent) with a 3-year tenor to CFPA Microfinance Management (CFPAMM) in the PRC. The proposed loan will fund CFPAMM's microfinance operations in counties designated by central and local government as poverty stricken areas.|
|Objectives and Scope||The sub-loans will be primarily used for agricultural and farming purposes, and may also be used to support individual microbusinesses in trade, manufacturing, and services as well as other rural economic activities. The proposed loan will benefit women, as CFPAMM specifically targets women in rural areas as its core customers and currently women represent 94% of CFPAMM's borrowers. It will promote gender equity by improving rural women's access to finance through 121,000 collateral free microloans to women borrowers.|
|Status of Development Objectives||To date, most of the objectives had already been achieved, with actual figures exceeding the baseline.|
|Status of Operation/Construction||On-going.|
|Linkage to Country/Regional Strategy||
The project supports two priorities identified by the Mid-term Review of Strategy 2020: (i) poverty reduction and inclusive economic growth; and (ii) private sector development and operations. The Midterm Review of Strategy 2020 highlights ADB's focus on reducing vulnerability and inequality and promoting inclusive growth in middle income countries. It is consistent with the PRC Country Partnership Strategy, and the current PRC country operations business plan, 2015 2017, which prioritizes promoting balanced development of rural and urban areas, supporting catalytic nonsovereign projects, and private sector development. The project is also aligned with ADB's Gender Equality and Women's Empowerment and Operational Plan, 2013-2020.
The proposed project is aligned with ADB's Financial Sector Operational Plan, which notes that ADB will support broad-based household access to microfinance. ADB's Microfinance Development Strategy calls for tapping the increasing potential of the poor by expanding access to microfinance. ADB's enhanced poverty reduction strategy also states that ADB seeks to promote sound and efficient financial markets to improve access to finance and achieve pro-poor growth. The proposed project is also consistent with ADB's earlier support in the microfinance sector.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The sub-loans under the proposed ADB loan are expected to have minimal environmental and social impacts.|
|Involuntary Resettlement||No land acquisition, physical or economic displacements.|
|Indigenous Peoples||No impact on Indigenous Peoples communities is foreseen in relation to any activities of the sub-borrowers.|
|Stakeholder Communication, Participation, and Consultation||Aligned with CFPAMM's social mission to enable micro-entrepreneurs to realize their dreams through provision of financial access to women in the rural regions, measures to further benefit and empower women borrowers and staff have been identified and will be incorporated in the project design. Some of the measures include: (i) conducting induction training for all women borrowers, (ii) holding relevant formal and informal trainings (e.g. financial literacy, farming techniques, pesticides handling, storage and disposal, and handicrafts) to enhance skills and capacity of women borrowers, (iii) establishing a network of women entrepreneurs to facilitate knowledge exchange, and (iv) conducting annual training for CFPAMM loan officers and other staff to better understand women borrowers' special needs. CFPAMM will also enhance its data collection to track and monitor information on women borrowers, as well as refine its client satisfaction survey to increase focus on women borrowers' experience. CFPAMM's annual report will also include implementation of the gender action plan.|
|Timetable for assistance design, processing and implementation|
|Credit Committee Meeting||09 Mar 2016|
|Approval||17 May 2016|
|Last PDS Update||22 Mar 2019|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Microfinance in Poverty-Stricken Counties: Report and Recommendation of the President||Reports and Recommendations of the President||Apr 2016|
|贫困县小额信贷 : 项目数据表||Translated PDS||Apr 2016|
|Microfinance in Poverty-Stricken Counties: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Dec 2015|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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ADB, CFPA Sign $50 Million to Boost Support for Microfinance in PRCADB has signed a $50 million loan facility with CFPA Microfinance Management to support approximately 130,000 microentrepreneurs in rural areas of the People’s Republic of China, which will boost income levels and employment.