Sarajevo, September 2024

MOTIVATION LETTER

Dear partner,

As the President of the Association of Microcredit Organizations in Bosnia and Herzegovina – AMFI, I am writing to you on behalf of our members and the microcredit organizations of the Western Balkan countries.

We seek your support to raise the visibility and enhance the efficacy of the microcredit sector, recognizing its significant role in both Bosnia and Herzegovina and the broader Western Balkans region.

AMFI is a registered non-governmental and non-profit organization representing both the Federation of BiH and the Republic of Srpska. Our mission is to advocate for the interests of our members and foster the development of the microcredit sector.

The concept of an MFI Alliance for the Western Balkans has emerged, and as a foundational step towards regional cooperation, a Memorandum of Understanding (MOU) will be signed during our inaugural regional conference. This event is scheduled to take place in Sarajevo from October 31 to November 01, 2024.

The Alliance aims to unify the MFI sector across the Western Balkans, creating opportunities for a more favorable business environment. This collaboration will support microcredit institutions and help establish robust relationships with regulators and international bodies, thus facilitating additional capital, financing guarantees, technical support, and other essential resources that are often inaccessible in our region but available in EU countries. According to data from central banks and regulatory agencies, over 120 non-depository institutions operate in the Western Balkans.

The conference will attract a diverse group of participants, including:

• CEOs and directors from MFIs, non-bank financial institutions, ethical and traditional banks.
• IT and digital transformation leaders within the financial sector.
• Legal and compliance officers focusing on regulatory aspects of digital finance.
• Representatives from regulatory bodies and government agencies. Fintech startups and technology solution providers.
• Academics and researchers specializing in financial technology and digital innovation.

Conference Objectives:

• Knowledge Exchange: Facilitate the sharing of insights, experiences, and best practices in digital financial services with an emphasis on ESG indicators, particularly women's empowerment and renewable energy use.
• Regulatory Collaboration: Promote dialogue between regulators, financial institutions, and technology providers to foster a supportive regulatory environment for innovation.
• Innovation and Solutions Showcase: Highlight the latest advancements in fintech, including mobile banking, digital payments, cybersecurity, and more, offering a glimpse into the future of finance.
• Networking and Partnerships: Provide valuable networking opportunities for participants to form partnerships and collaborations to drive digital transformation in the region.

The conference topics support the Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) principles.

We anticipate approximately 200 participants at the conference.

The expectations and benefits for the institution:

• Raise public awareness of the positive impact of the microcredit sector on active clients in the Western Balkans.
• Strengthen the sector's image by highlighting its importance for societal development through regular philanthropic activities.
• Enhance sector visibility as a vital area for economic development, focusing on supporting self-employment and job creation in micro and small businesses for vulnerable categories, particularly women.
• Emphasize the microcredit sector's role in increasing financial inclusion and social responsibility.
• Create a more favorable business environment supporting microcredit institutions in the Western Balkans.
• Promote sustainable development awareness.

The regional conference will address critical issues for the microcredit sector in Bosnia and Herzegovina and the Western Balkans.

With this letter, we appeal to your esteemed organization to support the first regional conference organized by AMFI and the Alliance of MFIs from Montenegro, Albania, North Macedonia, Kosovo, and Serbia this year.

We believe your esteemed institution will support us to the maximum extent possible, with the remaining funds to be covered by the Associations and MFIs of the Western Balkan Countries.

Thank you for your long-term cooperation and support of the microcredit sector.

Thank you for your consideration and support.

Sincerely,

Elma Zukić

President