The development goal of the PSN/MF programme is to promote increased access to sustainable microfinance services by poor or low-income households and micro-businessmen thanks to viable microfinance institutions integrated into the national finance market, by means of support for the following components of the SNMF:

1. Development of a legal, regulatory and institutional framework for harmonious and sound development of the microfinance sector;
2. Professionalization of microfinance institutions and development of sustainable supply of diversified and expanding products and services, particularly in zones not covered by professional microfinance institutions;
3. An appropriate institutional framework: efficient and coordinated conduct of the SNMF and linkage with other development policies.

• In Togo, the microfinance sector is expanding, with demand estimated in 2002 at 347,681 members or participants, 139,072 active borrowers, 20 per cent of them micro and small enterprises (MSE), and financial needs for credit of CFAF 44.5 billion. Deposit mobilization capacity amounts to CFAF 31.3 billion. There is also demand for means of payment, transfers and insurance.
• More specifically with regard to UNCDF and UNDP, their support for the sector has focused in particular on:
  • The establishment of the MicroStart Project in an amount of US$ 1,050,000 (US$ 350,000 from UNDP and US$ 700,000 from UNCDF), which ultimately permitted support for three institutions (initially seven) one of which, TIMPAC, ranks among the leading structures in the sector (see MicroStart evaluation in June-July 2003);
  • The implementation of the Project on Improvement of the Means of Existence of the Population (PAMEP), which provided for a development support fund (FADEV) that did not become operational;
  • Technical and financial assistance for conducting the diagnosis and drawing up the national microfinance strategy.
• In February 2004, the main players in the microfinance sector ratified the national microfinance strategy document (SNMF) for the period 2004-2008. This SNMF aims at establishing a viable and sustainable microfinance sector, private, integrated into the national financial market, diversified in terms of institutional form and supply of products and services, innovative, ensuring satisfactory geographical coverage of creditworthy demand for microfinance products and services, and operating in an adaptive and favourable political, legal, regulatory and tax framework. The overall cost of conducting the activities under this strategy for the period 2004-2008 amount of CFAF 5,729,000,000 (about US$ 10.7 million).
• The present PASN/MF programme is in line with this national strategy and aims at contributing to poverty reduction and the attainment of the Millennium Development Goals (MDGs).
• The opportunities in the sector are real, and comprise the following elements:
  • The Government's political will to support the promotion of the sector;
  • The objectives of growth and controlling inflation in the country are adequate;
  • The regional programme for support to the microfinance sector (2004-2008) of the Central Bank of West African States, which will contribute to the development of the sector;
  • The demand for microfinance products and services remains strong. 

• The project is housed within the Ministry of the Economy, Finance and Privatization.
• The project has a Steering Committee (CPP) which consists of the office of CNM and representatives of donors and is the programme's decision-making body, and a management unit (CGP), which is the body responsible for executing the decisions taken by the CPP.

• PASNMF has as its development objective the promotion of access to viable and sustainable microfinance services by a majority of poor or low-income households and micro-businessmen throughout the territory by 2008, thanks to viable microfinance institutions integrated into the national financial market.

• Evaluation and impact study to be conducted.

• Opening of financing to other donors interested in the microfinance sector in Togo.