The US$ 500 million Microfinance Support Programme (MFSP) is a five-year initiative of the Islamic Solidarity Fund for Development (ISFD) established for the purpose of enhancing access to financial resources, training and skills development in order to improve the livelihoods of about one million poor people in the OIC Member Countries.
The MFSP provides the economically active poor with a suitable and sustained access to Islamic microfinance products to help them build their own assets and to graduate from dependency to self-sufficiency.
The Programme reinforces and adds value to the conventional microfinance industry by promoting Shariah compatible products and services. The Board of Directors of the ISFD has earmarked US$ 100 million as seed money for the MFSP, while the remaining resources are expected to be raised from development partners within the public and private sectors.
Origin and Objectives of the MFSP
In line with the 3rd Extraordinary Session of the OIC Islamic Summit Conference held in Makkah in December 2005 (Dhul Qadah 1426H), the Microfinance Support Programme (MFSP) was established by the IDB/ISFD with the following objectives:
Promote access of economically active poor to financial resources and the means to create employment opportunities and improve the living conditions of deprived communities;
Build capacity of Microfinance Institutions (MFIs) and banks to serve larger numbers of poor and marginalised people by delivering quality and demand-driven financial services;
Promote Shariah-compatible microfinance products and services.