The European Microfinance Award is a prestigious annual prize of €100,000, managed by the Inclusive Finance Network Luxembourg (InFiNe.lu), that attracts applications from financial service providers worldwide who are innovating in financial inclusion. Established in 2005 by the Luxembourg Ministry of Foreign and European Affairs – Directorate for Development Cooperation and Humanitarian Affairs, the Award is co-organised with the European Microfinance Platform (e-MFP), the Luxembourg Ministry of Foreign and European Affairs, and InFiNe.lu, in partnership with the European Investment Bank. The Award serves a dual purpose: recognising excellence and promoting the dissemination of effective practices for replication by others.
For 2024, the Award focused on financial inclusion initiatives supporting forcibly displaced people, to help them build resilience, restore livelihoods, and live with dignity in host communities.
This year, after a rigorous selection process involving 49 organisations from 26 countries, RUFI from Uganda was awarded the €100,000 prize at a ceremony on Thursday, November 14th, 2024. The two other finalists, Al Majmoua in Lebanon and Palestine for Credit and Development (FATEN) in the Occupied Palestinian Territories, each received €10,000 for their outstanding contributions.
In this article, we delve deeper into the work of those three finalists, showcasing the remarkable efforts they are making in Uganda, Lebanon, and the Occupied Palestinian Territories.
Al Majmoua (AM) is the leading and largest Lebanese MFI with 26 years of experience providing financial and non-financial services to micro-enterprises in Lebanon. It is registered as a not-for-profit NGO, dedicated to the improvement of livelihoods and economic resilience of vulnerable populations, particularly women and youth. AM is an industry leader in both financial (600k cumulated beneficiaries before the crisis) and non-financial services (25k beneficiaries in the past 3 years alone).
Al Majmoua has developed several loan products in addition to the essential Group Loan and Individual Loan, including DAMEJ Loans since 2013 for people with disabilities, (with a subsidized interest rate and more flexible terms); Yalla Chabab Loans for Youth since 2014; Unguaranteed Loans for Women since 2015 (smaller security requirements); Green Energy Loans since 2017 (for renewable energy installation, clean transportation, energy conservation and energy efficiency products); Agri-finance and Cooperatives financing since 2024.
Since 2005, in line with a holistic approach to socio-economic development, AM has provided non-financial services to small entrepreneurs with a focus on women, youth, and vulnerable populations including FDP, IDP, and People with Disability (PWD). It has designed and administered many business training curricula in entrepreneurship and social entrepreneurship, business development services, product quality improvement and marketing, environmental and social standards (E&S), and individually tailored business coaching.
2. Given Lebanon’s ongoing crisis, how does Al Majmoua balance the financial sustainability of its operations with its mission to serve vulnerable populations, including forcibly displaced persons (FDPs)?
Before the financial crisis of 2019, AM was firmly a financially sustainable organization, driven by its strong sense of mission. As such, serving FDP and other vulnerable populations was not only the natural manifestation of its mission but, given the financial health of AM, it did not result in additional financial burdens. The financial collapse of the country resulted in significant financial losses to AM. Nevertheless, despite the losses, AM decided to follow unrelentingly its mission by serving the vulnerable, the IDPs and the FDPs. Pursuing our mission and standing by our clients during crisis times, when our support is most needed, primed any other consideration. This is why AM never stopped disbursing loans, even at the height of the financial crisis when hyperinflation and currency’s dramatic devaluation made new loans financially non-sustainable, or even when the war started in September 2024 resulting in more than a million citizens becoming internally displaced.
3. How does technology, particularly the mobile app, contribute to enhancing financial literacy, improving access to loans for forcibly displaced persons (FDPs) and economically marginalised groups, and empowering women who benefit from its use?
Technology, especially mobile apps, plays a significant role in enhancing financial literacy, improving access to loans for FDPs and economically marginalized groups, and empowering women.
First and foremost, it enhances financial literacy as mobile apps make financial education more accessible and engaging through interactive interfaces and real-time data analysis. This approach helps users understand complex financial concepts more practically and enjoyably. Also, offering personalized financial advice and educational content tailored to individual needs, helps users make informed financial decisions.
Mobile banking apps and digital wallets play an important role in providing access to loans in regions with limited access to traditional banking infrastructure. They provide a platform for FDPs and economically marginalized groups to access financial services, including loans.
Last, but not least, mobile apps empower women by providing them with the tools to manage their finances independently. This includes budgeting, saving, and investing, which are crucial for financial independence. Furthermore, women can access financial resources, educational content, and support networks through these apps, helping them build their financial knowledge and confidence.
4. Al Majmoua was among the three finalists for the 2024 European Microfinance Award dedicated to advancing financial inclusion for refugees and forcibly displaced people. What does this recognition mean for you?
Being among the 3 finalists has meant a great deal to Al Majmoua.
First and foremost, this is a validation of our efforts. It acknowledges the dedication and hard work the whole team at AM put into creating financial solutions that cater to the unique needs of refugees and displaced individuals.
Second, we hope it will lead to increased visibility, by bringing attention to the challenges faced by these communities and the innovative approaches AM developed to address them. This attention to the plight of RDP and IDP is most needed at a time when a cease-fire has finally gone into effect in Lebanon and the displaced populations are gearing up to return to their villages and rebuild what the war has destroyed.
Third, this has served as an important encouragement to the staff of AM who have dedicated their work and lives to helping vulnerable populations. Furthermore, it has boosted the morale of the whole team, which was reeling from 5 years of financial crises and a 70-day devastating war that rendered many of them internally displaced. This motivates continued efforts and dedication by the staff of AM and hopefully inspires others in the field to pursue similar goals.
Last, but not least, it provides AM with networking opportunities, which would hopefully develop into direct financial assistance to help AM overcome its immediate challenges. As pointed out above, this issue cannot be overstressed as we are still trying to recover our financial health following 5 years of economic and financial crises and 70 days of devastating war.
Overall, this recognition is a testament to the positive impact being made by Al Majmoua and a reminder of the importance of financial inclusion for all.
FATEN, officially known as Palestine for Credit and Development, was established in 1999 as a private joint-stock nonprofit company. Over the years, it has grown to become the largest and most prominent microfinance institution in Palestine. Our mission is centered around promoting financial inclusion and empowering marginalized populations, including women, youth, rural communities, and forcibly displaced peoples (FDPs).
Key highlights of FATEN’s work include:
FATEN has developed a comprehensive emergency loan program specifically designed to meet the immediate and long-term financial needs of forcibly displaced people (FDPs) and refugees. Recognising the unique challenges these groups face in rebuilding their lives after displacement, FATEN has prioritized accessibility, affordability, and sustainability to provide effective support within the context of ongoing conflict and economic instability.
To ease the financial burden, FATEN offers loans with near-zero interest rates, allowing recipients to focus on recovery without being overwhelmed by high repayment costs. Repayment terms are highly flexible, including grace periods of up to one year and repayment schedules tailored to irregular income streams or unforeseen challenges.
Acknowledging the barriers many FDPs face in providing formal documentation or collateral, FATEN has simplified the loan application process. Alternative identification methods are accepted, and the organisation ensures loans are quickly disbursed to address urgent needs, such as housing repairs, medical expenses, and small business recovery.
FATEN also offers tailored loan products to address specific needs:
Beyond financial assistance, FATEN integrates support services, including financial literacy training to help FDPs effectively manage funds and plan for long-term stability. The program also incorporates non-financial services such as health insurance and education funds to meet broader welfare needs.
The impact of these efforts has been significant. Many FDPs have used these loans to restart businesses, contributing to local economies and creating jobs. The program has also stabilised household incomes, reducing reliance on external support, while improving access to basic necessities like housing, healthcare, and food.
Despite the challenges faced by FDP clients, FATEN has observed high utilisation and repayment rates, demonstrating the resilience and commitment of those served. Furthermore, the initiative has enhanced financial inclusion, enabling FDPs who were previously excluded from formal financial systems to access affordable credit and establish trust in financial institutions.
Through these initiatives, FATEN continues to empower forcibly displaced individuals, helping them rebuild their lives with dignity and resilience.
2. How does FATEN address the challenge of providing financial services in areas with restricted mobility or frequent security disruptions?
Operating in Palestine presents FATEN with substantial logistical and security challenges in delivering financial services, particularly in areas like Gaza and remote rural regions. Military checkpoints, blockades, and security disruptions often limit mobility, requiring the organization to adopt innovative and adaptive strategies to maintain service continuity and client trust. Despite these obstacles, FATEN remains committed to ensuring that even the most vulnerable populations have access to financial services that empower them to achieve stability and resilience.
FATEN employs a multifaceted approach to address these challenges. Digital solutions play a central role, with mobile financial services enabling clients to make payments, apply for loans, and access financial resources remotely. Online loan applications reduce reliance on physical branch visits, and remote monitoring tools ensure efficient operations during disruptions. Additionally, FATEN emphasizes community-based operations by employing local staff and deploying field agents to bridge mobility gaps and build trust. Mobile branches and centrally located service hubs further enhance accessibility for clients in high-risk or restricted areas.
To sustain operations during emergencies, FATEN adopts flexible measures such as loan rescheduling, risk mitigation plans, and collaborative partnerships with NGOs and international organizations. Safety remains a priority, with regular risk assessments and staff training in conflict sensitivity and safety protocols. These efforts have enabled FATEN to achieve significant results, including maintaining uninterrupted services during conflicts, expanding reach to underserved areas, and fostering client trust as a reliable financial partner. Through innovation and resilience, FATEN continues to overcome barriers and deliver impactful services in the most challenging environments.
3. FATEN was among the three finalists for the 2024 European Microfinance Award dedicated to advancing financial inclusion for refugees and forcibly displaced people. What does this recognition mean for you?
Being recognised as a finalist for the 2024 European Microfinance Award marks a significant milestone for FATEN and a resounding affirmation of the meaningful work we are doing to promote financial inclusion in some of the world’s most challenging circumstances. This honor resonates deeply with our team, clients, and partners, serving as a powerful testament to the importance of our mission and the resilience of the communities we serve. It underscores the impact of our efforts to empower individuals and families, particularly refugees and forcibly displaced people (FDPs), to achieve financial stability and build sustainable livelihoods despite adversities.
This recognition validates the relevance of FATEN’s initiatives and highlights the effectiveness of our tailored approach to serving marginalized populations. It has brought international visibility to our mission, placing FATEN on a global stage and enhancing our ability to advocate for vulnerable populations. With this recognition, we not only strengthen stakeholder trust—be it from clients, staff, donors, or partners—but also solidify the foundation for new collaborations and partnerships. Furthermore, it motivates us to innovate and expand our services, ensuring we reach more underserved communities with solutions that address their unique challenges. FATEN’s perseverance in navigating the complexities of operating in Palestine, including mobility restrictions and ongoing conflict, demonstrates the organization’s resilience and steadfast commitment to delivering impactful services.
On a broader scale, this recognition serves as a beacon for advancing financial inclusion as a critical tool to empower marginalized populations and foster resilient, sustainable communities. It inspires others to invest in similar initiatives that address the needs of refugees and FDPs. FATEN views this achievement as a call to action to amplify its impact by scaling up its programs, innovating in digital and mobile banking solutions to enhance accessibility, and advocating for inclusive policies that drive social equity. This milestone is not just an acknowledgment of past achievements but a catalyst for future growth and transformative change in the communities we serve.
RUFI is a microfinance service provider that started operations in South Sudan in 2008. However, due to multiples challenges in South Sudan, we shifted most of our operations to Uganda. Specifically, in 2017, we began providing financial services to refugees because, at the time, no financial institutions were willing to work with them. These refugees were already our clients, and we felt a responsibility to continue supporting them. We started with one branch in 2017, and today we operate six branches, serving 10 refugee settlements in Uganda’s western region. Currently, we have 8,500 borrowers, 76% of whom are refugees and over 70% women. This journey reflects our commitment to providing inclusive financial services.
2. How does RUFI ensure the sustainability and scalability of its diverse loan products, especially cross-border collateralised individual loans and green energy loans, given the challenges of operating in refugee settlements?
Actually, working in refugee settlements is inherently challenging due to poor infrastructure, high costs of service delivery, and the difficulty of finding qualified staff willing to work in those areas. To overcome these obstacles, we design products tailored to the specific needs of refugees. For example, when introducing group loans, we initially considered groups of 15-20 members. However, refugees expressed discomfort because they often didn’t know each other well enough to trust such large groups. So, we reduced group sizes to 3-5 members, which significantly increased uptake. Similarly, refugees often lacked collateral for individual loans in Uganda. We innovated by using collateral they owned in South Sudan. We appraise and value this collateral in South Sudan through our branches there, which then allows them to access loans in Uganda. Our green energy loans are another example of adaptation. These products are typically expensive, so we structured the repayment in small, manageable installments. For those with an excellent repayment history, we even offer these loans as top-ups. Additionally, partnerships with like-minded organisations have helped us provide financial literacy training and technical support to refugees. Employing staff from refugee backgrounds has also enhanced trust and communication, further ensuring sustainability and scalability.
3. Can you elaborate on the successes and challenges of the REMEDY business incubator program, particularly in balancing the LOG (Loan, Own-capital, Grant) model for new refugees?
REMEDY as a business incubator program was developed to address the lack of working capital and assets among refugees in Uganda. At the time, financial institutions were reluctant to lend to them, so we created a holistic product combining loans, own-capital contributions, and grants. The model works like this: refugees present their business ideas—without needing to write proposals, which can be a barrier due to language issues. We then help refine their ideas and provide a package that includes a loan for working capital, their own contribution to show commitment and a grant to support startup costs. One success was proving that refugees could contribute their own capital, often by engaging in small-scale income-generating activities like fetching water or selling goods. The program also created jobs, with participants hiring others to help run their businesses. For instance, one woman who reopened her restaurant after joining REMEDY employed five others almost immediately. On the agricultural side, we partnered with host communities to secure land for refugees, allowing them to grow crops for both sustenance and market sales. This collaboration not only improved food security but also fostered stronger ties between refugees and host communities. Challenges included the onset of COVID-19, which disrupted funding for the grant component just as we expanded the program. Additionally, the inclusion of widows and other vulnerable groups came late in the project due to funding constraints. Despite these challenges, many participants have transitioned to conventional loans, which underscores the program’s success as an incubator for financial independence.
4. Rural Finance Initiative Limited (RUFI) won the 2024 European Microfinance Award dedicated to advancing financial inclusion for refugees and forcibly displaced people. What does this recognition mean for you?
Winning this award was both humbling and exhilarating. Initially, we saw ourselves as just another organisation addressing refugee finance. But being recognised on such a prestigious platform has affirmed the impact of our work. This award has greatly increased RUFI’s visibility and credibility. We’ve been approached by new partners and institutions eager to collaborate. The recognition has also motivated our staff and board. It’s a validation of our efforts and has energised us to scale up our initiatives. The prize money will be instrumental in upgrading our core banking system, enabling us to better track environmental, social, and governance (ESG) metrics. It will also support staff capacity building, ensuring that we can continue to innovate and expand our reach. Overall, this award has positioned RUFI as a global leader in refugee finance, and we’re excited to leverage this recognition to make an even greater impact.
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