DDI_CPV_2006_MCC-PSD_v01_M Millennium Challenge Corporation 2014-10-16 NADA Version 1.0 (October 2014) Version 2.0 (June 2015). Edited version based on Version 01 (DDI-MCC-CPV-IND-PSD-2010-v1) that was done by Millennium Challenge Corporation. Private Sector Development 2006-2010 MCC-PSD 2006-10 CPV_2006_MCC-PSD_v01_M Águido Cabral NADA Millennium Challenge Corporation Monitoring & Evaluation Division Independent Impact Evaluation Not applicable to this evaluation; no quantitative data to be shared private sector capacity building finance The objective of the Private Sector Development Project activities of the 2005-2010 Cabo Verde Compact was to support Cabo Verde's long-term economic transformation strategy of becoming less dependent on remittances and donor aid by developing a competitive, private-sector driven economy through a focus on the priority sectors. The Private Sector Development Project included the following two Activities: 1) Partnership to Mobilize Investment Activity: Designed to remove constraints to investment and stimulate the priority sectors of the economy by reducing early-stage project development risks that dissuade both domestic and international private investors. 2) Financial Sector Reform Activity: Designed to increase access to financial services and improve financial intermediation by expanding access to the primary market for government securities. The Financial Sector Reform Activity consisted of two sub-activities with the following objectives: a) to increase access to credit by supporting the development of micro-finance institutions and b) to increase financial intermediation by expanding access to the primary market for government securities. In order to achieve the Financial Sector Reform objectives, MCC funding supported: 1) Expansion of Access to the Primary Market for Government Securities: This sub-activity supported financial sector competitiveness by enabling domestic, non-bank investors, including individuals and corporations, to access the primary market for government securities. It is expected that this activity will assist in creating a more transparent market. Specifically, MCC funding supported a) technical assistance to the Ministry of Finance to assist with the development of new auction procedures and related matters such as the design of a registry of ownership and the role of financial intermediaries; and b) the provision of software to support the primary government securities market. 2) Development of Micro Finance Institutions (MFIs): This sub-activity focused on transitioning MFIs to being both deposit-takers and regulated entities and enabling them to become more significant providers of credit, savings, and other financial services to both rural residents and the urban poor. Specifically, MCC funding a) supported technical assistance to assist MFIs to take advantage of expanded deposit-taking powers and to ease the transition to a new regulatory environment (e.g., defining governance structure and institutional policies, design and pricing of liability products, asset liability management and tracking, marketing, and regulatory reporting requirements, etc.); and b) provided software to support the record-keeping associated with those deposit-taking powers. This report evaluates the development of organizational and human capacities MFI financial intermediation services intended to ensure a continuous and sustainable provision of financial services to groups not covered by traditional credit lending institutions. The report draws on a i) comprehensive review of the literature, b) in-depth interviews with targeted MFI managers and c) focus group sessions and semi-structured interviews with the beneficiaries of the agricultural credit. The report also evaluates the effects of training on the Cabo Verde Federation of Micro Finance institutions (FAM-F); an umbrella organization designed to promote the growth, consolidation and integration of the micro-finance industry in the overall financial system. Republic of Cabo Verde Multilateral financial insitutions, individuals Multilateral financial insitutions Other To collect information from MFIs a structured questionnaire was prepared and submitted to the institutions to be filled in. However, given the delay and the unavailability showed, it was decided as a matter of time management, to use the questionnaire as a guide for in-depth interviews conducted with the managers of the five target MFIs. Millennium Challenge Corporation Millennium Challenge Corporation http://data.mcc.gov/evaluations/index.php/catalog/129 Cost: None Cabral, Águido. MCA-CV Private Sector Development Project Impact Evaluation Report. 2010.