Sanitation market assessment and lending product review in Tanzania

Sanitation uptake in Iringa, Tanzania, remained low due to weak household demand, limited financing options, and underdeveloped institutional frameworks. 

In this context, MSC conducted a qualitative market assessment to understand sanitation needs, behavioral barriers, and households’ willingness to pay for WASH services. We reviewed existing financial products, identified gaps in service delivery and operational models, and proposed tailored sanitation loan products. We also developed a pilot testing plan and a detailed implementation budget to support the deployment of sanitation financing solutions. 

This engagement supported a locally driven approach to building a sustainable sanitation market ecosystem in Iringa. 

Fondazione ACRA-CCS, in collaboration with Iringa Youth Development and Community (IDYDC), commissioned this project. 

Due diligence of Mitrata, NBFC-MFI, India

Opportunity International Australia (OIA) commissioned MSC to conduct a due diligence on Mitrata Inclusive Financial Services Private Limited, an NBFC-MFI headquartered in Gurugram, India. Through this engagement, we identified operational, internal control, and governance-level deficiencies in Mitrata that could potentially impact the future cash flow of the entity.

We conducted a detailed review of the existing processes, policies, and financial statements, followed by visits to 10 Mitrata branches across five states. We also connected with Mitrata’s leadership team to understand their organizational strategy. MSC submitted the due diligence report to the client based on the qualitative and quantitative insights from the field and the back office.

Based on the findings in the report, OIA was able to plan its investment strategy in the organization. Further, OIA shared the report with Mitrata to work on the highlighted deficiencies and recommendations.

Organizational assessment and operational due diligence of MFI, India

CAP V Engagements Mauritius – Carlyle engaged MSC to conduct a comprehensive due diligence assessment for a large microfinance institution (MFI) in India. The project’s objective was to evaluate the operational processes, policies, and procedures of the MFI and compare them with industry benchmarks to assess their robustness.

The MSC team developed a research tool outlining key points for interaction with MFI staff at various levels, which included branches, regional offices, and field locations, as well as with their customers. The tool standardized the data and insights-gathering approach for multiple teams of experts traveling to different branches.

We conducted visits to 20 branches across seven states. which included Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan, Odisha, West Bengal, and Jharkhand. MSC visited 27 centers and interviewed 128 clients for key informant interviews (KIIs) to gain insights from the field. 

The MSC team conducted a comprehensive review of the investee MFI’s documentation and processes:

  • The client loan documents, registers/files, and other branch records are maintained at the selected branches.
  • The review included a thorough check of the loan origination system, loan application process, credit underwriting, loan collection and disbursement processes, delinquency management, and related MIS reports.

In addition to document reviews, the team held deliberations with various stakeholders, including customer service representatives (CSRs), branch managers, branch quality heads, area managers, and senior management at the head office. Meetings with senior management and functional heads at the head office further complemented the study’s findings.

For operational due diligence, MSC utilized an analysis framework, which covered 14 critical parameters that directly impacted an MFI’s operating procedures. MSC prepared a detailed report to compare the MFI’s current operations against industry benchmarks and key competitors, such as Bandhan Bank, Bharat Finance India Limited, Ujjivan SFB, Annapurna Microfinance (AFPL), and other players.

The MSC team submitted a final due diligence report, which provided CAP V Engagements Mauritius – Carlyle with crucial insights to make a go or no-go decision on investing in the NBFC-MFI.

Samastha: Microfinance risk management

MSC partnered with Samasta to enhance its risk management capabilities. We began by reviewing the institution’s existing risk framework, policies, and processes to identify key areas for improvement.

Building on this assessment, we developed a comprehensive and robust risk management framework tailored to Samasta’s operations. This included a detailed risk manual with process maps for risk identification, assessment, and mitigation. We also developed key risk indicators (KRIs), a structured risk reporting template, and hands-on training workshops for risk managers.

Our engagement helped Samasta institutionalize a stronger, more proactive approach to risk, equipping the team with tools and processes for sustained risk oversight.

Risk management training and preparation of risk management policies, WISDOM, Ethiopia

Wisdom Microfinance Institution (SC) is a World Vision-affiliated microfinance institution established in 1998. It provides financial services to micro-entrepreneurs and smallholding farmers in Ethiopia. MSC was contracted to develop risk management systems for Wisdom.

The MSC team developed a risk management matrix for the organization. Further, specific risk owners were identified for each department concerned with the risks identified for that department. For every risk, we defined monitoring indicators, reports, and threshold levels of those indicators to monitor changes in the risk profile of Wisdom regularly. The MSC team also prepared a risk-management manual and submitted it to the Central Bank of Ethiopia as its policy document on risk management.

As a result of our work, Wisdom subsequently decided to integrate the risk management policies in its policy documents as a part of the overall management function.

Wisdom Microfinance Institution commissioned the project.

Cashpor Micro Credit: Training module development and training on risk management

Cashpor Micro Credit, an MFI, contracted MSC to strengthen its risk management function. We developed a risk management training module and conducted training for the risk department team. 

The MSC team, in consultation with the senior management of Cashpor, identified the areas to be covered in the training module. Further, the team developed the risk management training module and conducted three training sessions to cover all staff members of the risk department. The training module covered risk management processes, roles and responsibilities of staff and board in risk management, and a systematic process for risk management, which included a risk management framework. 

The MSC team trained more than 80 staff members of the risk department of the organization. The training helped the staff members to enhance their skills in identification, assessment, and formulating a risk mitigation strategy.