Microfinance: Deepening The Grassroot Reach

Microfinance is a key financial instrument and strategy in addressing the unique needs of the unbanked population. It has recently gained traction in the country as a result of its poverty alleviation potential and the profit at the bottom of the pyramid.

But it is very far from the grassroot. It could begin by promoting grassroot enlightenment and awareness campaigns especially in helping the poor access finance and getting into the formal sector.

Also, Micro-finance banks are still plagued by some of the stringent requirements that have excluded our population from enjoy the benefits of the formal economy. This institution that was integrated into our financial system was meant to alleviate poverty and boost entrepreneurship through micro-lending to the poor and financially disenfranchised.

It has gradually fallen into the mould of the usual banking financial ways. Thereby making accessing funds very difficult and threatening to the citizenry who need this cash to grow their small businesses.

We think it is very important that the micro-lending institution constitute themselves into strong bodies that will leverage their size and expertise and engage in policy advocacy; tap their network of expertise and those outside for advise and knowledge on how to give the industry the necessary boost. With this they can serve the poor better. We acknowledge their contributions even in a challenging business environment like ours.