1. To start, could you give us an overview of SMMEC’s mission and its role in promoting savings and credit services in Madagascar?
SMMEC, Malagasy Mutualized Savings & Credit, is a mutualist microfinance institution that has operated in Madagascar for 25 years. We’re marking our 25th anniversary this year, and over that time we’ve served communities across much of the country. Today we are present in 14 of Madagascar’s 24 regions.
Our mission is to deliver sustainable, profitable, adapted and innovative financial services, close to where people actually live and work. We focus on the “active” population: women, youth and rural households. Remember that nearly 80% of Malagasy people live in rural areas. Beyond access to finance, our commitment is to stimulate socio-economic and environmental development while contributing to poverty reduction at the national level. That is why we actively promote entrepreneurship and support small and medium-sized enterprises.
2. What distinguishes SMMEC from other financial institutions, especially in terms of the mutualist model and your community approach?
The mutualist model is our foundation. Our members are both the depositors who provide the funds and the borrowers who need credit. Our job as a microfinance institution is to manage that cycle prudently and transparently.
Crucially, before we extend a single ariary of credit, we invest in financial education. Teaching budgeting, basic accounting, savings discipline and loan management is not optional, it is essential. We never treat financial literacy as an afterthought; it is central to our value proposition and to the health of the communities we serve.
3. Financial inclusion remains a major challenge. How is SMMEC expanding access to savings and credit for underserved populations, particularly in rural areas?
The Government of Madagascar’s National Strategy for Financial Inclusion 2024–2028 explicitly encourages financial institutions to push inclusion deeper and wider. Our strategy aligns with that. We operate 139 service points across our 14 regions, bringing services closer to households and entrepreneurs. Where it’s not viable to open a full branch, we partner with banking agents so members can deposit, withdraw, repay loans or initiate applications in their own localities.
At the same time, we are pushing digitization so distance is no longer a barrier. Mobile is key in Madagascar, even in remote areas, households may lack formal infrastructure but they do have a basic phone. We’re working with mobile network operators to extend digital channels for payments, savings, micro-loans and repayments so members can transact without traveling long distances to a branch.
4. How do you make sure your lending truly supports small entrepreneurs, farmers and households as they build rural livelihoods?
It starts with listening. Our field officers spend time in the community, understanding cash-flow cycles, seasonality, and real constraints, then we adapt our products accordingly. Financial education comes first, but continuous accompaniment is equally important. We monitor, we advise, and when needed we refine loan terms (tenors, grace periods, repayment schedules) so they match how a farmer earns or how a small trader turns inventory. That responsiveness is the difference between a loan that burdens and a loan that builds.
5. What recent innovations or digital tools has SMMEC introduced to improve efficiency and accessibility?
A simple but powerful addition has been biometric authentication at the teller, members can use a fingerprint rather than a passbook for withdrawals and transactions. It reduces friction and fraud, and helps members who may struggle with paperwork.
The larger thrust is our end-to-end digitization: integrating mobile channels, agent networks, and core systems so members can apply, repay and save from a phone, smartphone or feature phone, without needing to visit a counter. We’re working with telecom partners to expand USSD and app-based services over the coming months so distance and time cease to be barriers.
6. Capacity-building is central to sustainable finance. How does SMMEC invest in member sensitization and responsible lending practices?
We follow a “train-the-trainer” model. SMMEC’s in-house specialists train our network of agents and field officers, who then deliver financial education workshops in villages and marketplaces, covering topics from savings goals and business planning to interest, amortization and risk. We also embed ongoing client protection: transparent pricing, affordability assessments, grievance channels and post-disbursement follow-up. Responsible lending is a process, not a product.
7. What role does SMMEC play in Madagascar’s broader economic development, especially in empowering MSMEs and local communities?
Our vision is to become a reference financial institution, offering modern products marked by proximity, professionalism and security, while exceeding customer expectations. Practically, that means we go to the client: through branches, mobile agents and collection points in communes where formal finance is absent. We help individuals become first-time savers, then first-time borrowers, and ultimately micro-entrepreneurs or smallholders with bankable cash flows. That progression is what lifts local economies.
8. Partnerships can amplify impact. Which development agencies, financial institutions or investors has SMMEC worked with to consolidate its model?
Over the years we’ve collaborated with a number of partners. In the 2000s, we worked with the UN Development Programme and, importantly, with the World Food Programme in the south (the Androy region), where drought and food insecurity are persistent. Our branch footprint there allowed us to support vulnerable households responsibly. As a regulated MFI we also work with the World Bank on sectoral initiatives and, of course, under the supervision of Madagascar’s central bank. These relationships, strategic and technical, help us keep governance strong while widening outreach.
9. You mentioned mobile earlier. Can you expand on your collaboration with the telecom ecosystem to scale access?
Mobile is the most practical inclusion rail in Madagascar. We are integrating with operator platforms so members can save, repay and receive disbursements through their phones, whether via USSD for feature phones or apps for smartphones. The aim is simple: lower cost, shorter distance, faster service. As we roll this out region by region, we expect a step-change in active usage among rural clients who previously made only occasional branch visits.
10. How do you ensure that SMMEC’s growth stays close to its mutualist roots, people-centered, prudent, and inclusive?
By design. Our governance reflects our member-owner base; our performance metrics balance portfolio quality with outreach; and our teams are incentivized on client success, not just loan volumes. We measure repayment discipline, yes, but also repeat usage, savings behavior and business survival. And we insist on progressive product design: small first loans, accompanied by coaching, that can grow as a member’s capacity grows.
11. Are there opportunities for collaboration with Gulf countries, especially the UAE, in fintech, investment or capacity reinforcement?
Absolutely. The Government of Madagascar has prioritized deeper ties with the Gulf, and that aligns with our needs as a sector. We see opportunities in fintech co-development (payments, scoring, agent management), blended investment to expand rural outreach, and capacity-building in risk, cybersecurity and digital operations. The UAE’s experience in scaling inclusive digital finance could accelerate Madagascar’s inclusion journey, SMMEC is ready to be a local execution partner.
12. Finally, what message would you like to share with Khaleej Times readers about SMMEC’s vision and Madagascar’s financial-sector potential?
Come to Madagascar. This country is rich, in nature and in people. Our population is young, energetic and increasingly tech-savvy, especially in IT and mobile. Yet much of the financial potential is still untapped. SMMEC’s vision is to turn that potential into inclusive prosperity, one saver, one entrepreneur, one village at a time. We welcome partners who share that vision and want to build it with us.
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