In 2008 and 2009, three aspects of Safwco’s institutional strengthening components emphasized the shift towards market based approach.
1. Registration as SAFCO Support Foundation under Companies Act.
The registration makes it possible for SAFCO Support Foundation (Sustainable Actions to Access Financial Capital Opportunities (SAFCO) to invite equity investments and for commercial lending institutions to provide debt financing to SAFCO. The process of registration was long drawn, and with its successful completion, SAFCO is in the process of creating and advisory board of legal, financial, human resources management and social development expertise to transform the NGO management into a micro finance institution. In 2010 -11, SAFCO plans to complete the transformation process and apply for rating as a micro finance institution.
2 Exploring Foreign Investment Market
Safwco started exploring the foreign investment market and adjusting its systems and procedures to establish market credibility. With ACTED (Agence d’Aide à la Coopération Technique et au Développement) support, the Safwco CED sector reviewed the strategic plan prepared in 2007 and carried out a SWOT analysis that identified the following areas as requiring attention.
- Governance – formulation of overseeing committees, making operational separate finance department, and review of business plan
- Financial Management – financial reporting in IFRS/ CGAP format, liquidity management, and breakeven and productivity analysis
- MIS Evaluation – Complete the data migration into a web based MIS and assess its functionality, flexibility and usability
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