Project assistance completion report : development of the Togo National Credit Union Association

The project was largely successful in supporting the development of the Togolese credit union movement. Although it currently can be considered to be at a "take-off" point, it has been more successful in some areas than in others. Development of FUCEC"s administrative and financial management systems may be the project"s largest success. Vast improvements have been made since project start-up -- currently, all active member credit unions produce monthly financial statements, including loan delinquency schedules. In addition, internal manuals have been developed and all accounting systems are now computerized. Some training still needs to occur in order for the office staff to become fully conversant with the new systems. The Central Liquidity Facility (CLF) achieved a rate of deposit significantly lower than projected, but now constitutes FUCEC"s main financial system. Training of FUCEC field staff was conducted, with an emphasis on training of trainers. Representatives from individual credit unions received training in accounting, cooperative organization, office management, planning, and institutional analysis. Although training was relevant to FUCEC"s work, more emphasis should have been placed on transfer of technical knowledge. Due to unforeseen legal and technical delays, the risk management program developed by the project was never instituted. The director of the risk management section is fully trained and could implement the program if approved by the Government of Togo (GOT). Many of the project output targets were met or surpassed. The number of active credit unions has increased from 72 to 119; credit union membership has grown from 6,214 to 15,137; credit union deposits have grown to $2,482,777; and outstanding loans have been valued at $2,054,670, 60% over the original target. FUCEC failed to achieve the projected self-sufficiency rate of 50% (only a 15-20% self-sufficiency rate was achieved). Two major recommendations which resulted from the final evaluation were not achieved by the project, but became CPs to the follow-on TRIPS project. The first was for the GOT to formally issue a letter to FUCEC indicating approval of its risk management program. The second was for the GOT to designate FUCEC as its agent in matters which concern financial and technical control of all the savings and loan cooperatives operating in Togolese territory. The following lessons were learned. (1) Operational and management systems should be introduced in accordance with the personnel"s ability to operate them. Where possible, technical systems should be instituted in a step-by-step manner introducing the next step only when the previous has been mastered. (2) Integrating grant resources received simultaneously from several donor organizations requires skillful, managerial attention. Objectives must be clearly stated to avoid the risk of having different approaches taken by the donors jeopardize project success. (3) The willingness of management and supporting structures to take the necessary measures to progress at the programmed pace is vital to the success of a project. (Author abstract)