Promoting Responsible Finance and Sustainability in Azerbaijan

This learning brief begins by providing an overview of the key players in the Azerbaijan microfinance sector, followed by more detail on the approaches used by Azerbaijan micro-finance Association (AMFA) to build its sustainability and credibility in the sector. It then goes on to explain the role of those different actors in furthering responsible finance in Azerbaijan, ending with lessons from the Azerbaijan experience that are relevant for emerging microfinance associations.

This document is based on the lessons that emerged during a study tour attended by a Rwandan delegation to Baku, Azerbaijan from September 17-21, 2018. The objectives of the study tour were to:

• Understand the role played by the microfinance association in Azerbaijan in promoting responsible finance and client protection in the sector, and how this translates into members’ practices.
• Understand responsible finance activities being conducted by other sector stakeholders.
• Understand the role of the private credit bureau and its use by financial service providers.
• Understand AMFA’s approach to achieving financial sustainability.
• Capture lessons learned for the Rwandan microfinance sector and the Association of Microfinance Institutions in Rwanda (AMIR).