INAFI Africa Trust, Africa Union Private Sector Forum, 28-30 November 2006
This paper discusses the role of microfinance and its impact: on employment creation, income generation, women empowerment and savings mobilization among others, from the results of studies undertaken in different parts of the African content. The paper also discusses some of the challenges that face microfinance institutions (MFIs) all
over Africa in their attempt to grow their capacity to reach more poor people and generate lasting impact from their services. Within the rural sector for instance, ill-functioning local markets makes agricultural input finance risky; farmers do not know in advance if they will get a fair price for their produce enough to recover farm inputs, build reserves to start a new production cycle and sustain the lives of their families. Moreover, most farmers do not control post-production preservation and marketing facilities, meaning that they are often forced to sell their produce at lowest possible rates to buyers.
Overall, this paper has been prepared to demonstrate that micro finance in Africa has a major role of reducing poverty among its participating clients, their direct and indirect dependants and the communities in which they operate in general.
Author(s): Rose MwanikiAdditional resources: