microfinance

Microfinance: Moving Out of Poverty

Microfinance is a powerful means of empowering poor and vulnerable people to improve their families’ standard of living. We are proud of our programs, but they can always improve. That’s why we’re so excited about a new initiative CRS is working on with the Grameen Foundation and other partners in Africa. The Progress out of Poverty IndexTM is a simple and accurate tool that measures poverty levels of groups and individuals. Using the PPI, microfinance institutions can better determine their clients’ needs, which programs are most effective, how quickly clients leave poverty, and what helps them to move out of poverty faster.

Work on this initiative is progressing nicely. We’ve just received work that CRS is working with a  partner, the Senegal National Microfinance Association,  that is reaching beyond its borders, training practitioners from Uganda and Kenya in the Progress out of Poverty Index methodology. http://www.progressoutofpoverty.org/blog/apsfd-training-kenya This collaboration represents an important transfer of knowledge that will help improve the effectiveness of microfinance in these East African nations.

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One Response to “Microfinance: Moving Out of Poverty”

  1. Abayneh Girma Says:

    Microfinance is surely strategic in the improvement of livelihoods of the poor. However, it depends on who, how and with what conditionalities financial loan products are provided. Big MFIs tend to be inaccessible for the poor. the poor should have other options for such services. A mechanism that provides some sharing to the loan taker poor of the profits generated in the process should be designed to make the poor interested in taking loans and in repaying the loans. this is an important issue in financial and other assets transferred as part of project interventions.

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