Microfinance

Microfinance, whereby low income earners can obtain loans or deposit their savings, based on small amounts of money, was developed in the 1980s. The most common type is microcredit, small loans made available through banks, farmers’ organisations, NGOs or self-help groups. But microfinance also includes a wider range of financial services, such as savings accounts, micro-insurance and money transfer/remittance services. The interviews in this pack focus largely on success stories in microfinance in Africa. These include: credit unions; training programmes that teach basic financial and business skills; provision of farm services rather than money; weather-linked crop insurance; and money transfer by mobile phone.

Technical information, pack usage details, resources and full scripts (PDF Format)

Credit unions for savings and loans 4’40”

The importance of saving, and how credit unions can serve the rural poor

Repaying loans - training for borrowers 5’46”

How a microfinance institution has achieved a very high repayment rate by offering training to its borrowers

Business skills for borrowers 5’05”

Training offered by the Indigenous Business Advisory Service in The Gambia

Choosing the right time to borrow 2’47”

A wine-maker from Uganda explains why taking a loan was the right decision for her business

Funding farm services 4’15”

How the Savannah Farmers' Cooperative is offering microfinance in the form of farm inputs and services

Credit from stored grain 3’00”

Zambia's experience with the warehouse receipt system, whereby farmers can borrow money using stored grain as collateral

Insuring against bad weather 4’32”

A weather-linked micro-insurance scheme in Malawi which enables small-scale commercial farmers to insure their crops against droughts and floods

Insurance - who needs it? 3’43”

Why should subsistence farmers insure their livestock or other farm assets?

Transferring money by mobile phone 5’57”

In Kenya, money transfers to friends, family or for business are now possible using mobile phones