In most developing countries, research has not sufficiently resulted in qualitative and quantitative improvement of services offered to customers. One of the main reasons is that it is carried out without consideration of the realities lived by the populations targeted (rural, etc.), and this explains why a good number of products are neither adapted nor attractive to prospective users. In other words, research is not geared towards action and development.

Development oriented research is, as the expression clearly indicates, a research that makes development its first objective. This implies assessing research on the basis of the innovations generated, but also from its impact on institutional development, living conditions of populations and thus on poverty alleviation.

Conscious of the situation, ADAF, through its various training and research centres, has been carrying out research in domains such as microfinance, agriculture, appropriate technologies for the transformation and promotion of local production and materials, new information and communication technologies, and issues relating to the appropriate and sustainable development of Africa.

Thanks to its action research experience and to the collaboration of partners from the world of academics and research, ADAF provides counselling services that enable in some specific cases, to make a diagnosis of the situation, identify research studies and programmes and help in their realisation.

Action research in microfinance

MFI development programmes laid little emphasis on development-oriented action-research, and so most of these programmes failed. This oversight is detrimental both to the customers and to the development of MFIs. On the one hand, customers can not fully capitalize on investment opportunities, being deprived of appropriate financial services. On the other hand, MFIs hardly achieve financial sustainability because of lack of cost effectiveness of their financial transactions, owing mainly to the absence of scale economy and to restricted intermediary financing. Developing attractive financial services, taking into account and analysing MFI problems, evaluating their impact on the life of both the customers and their community will surely help improve on the performances of these institutions.

Action-research, on account of the knowledge developed, brings about innovations at various levels, namely: (1) the financial system, (2) the institution, (3) procedures, and (4) products. Innovations relating to the financial system (legal framework, regulation and prudential standards) can smooth the integration into the financial market and broaden the range of services offered, enhance the development of a sound and sustainable financial system; institutional innovations can facilitate the access of the underprivileged and micro entrepreneurs to formal financial services; innovations as to procedures may help to reduce transaction charges and improve institutional effectiveness; and innovations in terms of products may as well help MFIs to meet the demands of their clientele in an effective and sustainable manner

Action-research programmes developed by ADAF aim at:

• Compiling data on current practices by providers of financial facilities in the local environment, particularly in rural areas and evaluating the effectiveness and impact of innovative techniques;
• improving on the capacity to provide financial services to the poor in an effective and sustainable manner;
• designing mechanisms for Governments and financial backers to define a legal framework and prudential standards, to support innovative and MFIs that impact on the socially weak and contribute to the effective development of rural areas; and
• establishing a forum of exchange, where the findings of research are discussed and where the best experiences in the domain of microfinance are shared.

For many years now, the Research Department of ADAF has been carrying out action research so as to provide rural populations, micro, small and medium scale enterprises as well as the socially weak with effective and sustainable financial services. The very first outcome was the creation of a product known as MC². This is a micro bank for rural development set up in a view to integrating the poor and the rural areas in the development process and integrating local practices and knowledge in the modern management of banks. Research has also resulted in the development of a financial instrument appropriate for the financing of the activities of urban women with very limited income. This instrument called MUFFA (African Women's Mutual Financing) was launched five years ago and as of date covers the major cities in Cameroon (Yaounde, Douala and Bafoussam).

Other research projects are in progress and focus essentially on the following themes:

• the development of new products;
• the impact of interest rates on the mobilisation of savings and the distribution of credits;
• research for various types of collaterals adapted to the rural populations, to micro, small and medium enterprises and to the most underprivileged;
• linkage between the informal sector (tontines and others), MC²s and the formal banking sector;
• the impact of services offered by MFIs on the clientele, on the local communities and on the nation as a whole;
• research on the definition of the concepts of poverty and the poor.

In view of identifying the themes and conducting the research programmes, partnerships have been established with the University of Hohenheim in Germany, with consultants, and negotiations are in progress with the University of Dschang, the Catholic University of Central Africa and the University of Yaounde II. ADAF also supervises students working on themes relating to microfinance.

Action research for appropriate technologies

The activities carried out in the various training and research centres we early presented have been instrumental for the development of new:

• farming and breeding techniques adapted to the different agro-ecological environments (ADAF Agro);
• transformation techniques of various species of timber (ADAF Bois);
• technologies, equipment, and machines for the production, processing and promotion of local materials and products (ADAF CEPCOM);
• software adapted to the environment as well as to micro, small and medium scale enterprises in Africa.

Action research for project identification

ADAF carries out field research so as to identify in the various agro-ecologic areas the best projects and business opportunities. Documented data has been compiled to this end, as well as a databank on opportunities and projects for small entrepreneurs.

ADAF is also planning to carry out or support research for environmental preservation and the development of eco-tourism