Microfinance is one of the means in the fights against poverty that is used in Africa. To find out more about this approach I have stayed for half a year in Kenya working with two mircrofinance institutions. This period provided me with the insight in the tools and means that organisations in this field use. And more importantly in this period I discovered how Kenya’s society functions and what the possibilities and limitations of microfinance are.
- To share this knowledge I have put together some information on mircofinance.
- Secondly I would like to introduce a local microfinance organisation with great ambition and the potential to help even more people in the future.
What is microfinance about?
Microfinance is about the provision of financial services to those excluded from the formal financial system. Between two and three billion people still lack access to a broad range of financial products and services on a sustainable basis. Access to financial services like credit, savings and insurance is important for people and businesses to generate income, manage cash flow and protect against risk.
Without access to financial services it is difficult, if not impossible, for many poor and low income households to set up a business, save for the education of their children or insure against medical costs. This makes it difficult to break out of the viscous circle of poverty. Everything starts with being able to acquire the knowledge and capital to set up a business, being able to save in order to invest, being able to live a healthy live in order to work and care for the children, and finally to save money to send the new generation to school.
The UNCDF provides a Microfinance Distance Learning Course for free: Click here to learn more
Article by Roxy Tacq