IFC to help set up microfinance institutions in Zambia: report
- Monday, February 15, 2010, 8:27
- Latest News
- 1 comment
Microfinance Focus, Feb 16, 2010: The International Finance Corporation (IFC) has said it will set up microfinance institutions in Zambia this year in an effort to enhance access to microfinance services by many people, the Post of Zambia reported on Wednesday.
IFC Information Officer Houtan Bassiri said the institution, which is a member of the World Bank, has partnered with Germany’s KfW Entwicklungsbank in helping address the lack of financial services that have held Africa’s development.
“As of December 2009, IFC and KfW have supported the creation of six new microfinance institutions in the Democratic Republic of Congo, the Republic of Congo, Ghana, Madagascar, Nigeria and Tanzania. New institutions will soon be established in Senegal and Zambia as the program continues to extend its reach,” Bassiri was quoted as saying by the paper.
According to Bassiri, the IFC was creating new institutions by partnering with financial sponsors, advisory services providers adding that the partnership was helping in creating opportunities for people that need financial services.
© 2010, Microfinance News. All rights reserved. 2008-09
One Comment on “IFC to help set up microfinance institutions in Zambia: report”
Write a Comment
Gravatars are small images that can show your personality. You can get your gravatar for free today!
From our extensive field experience we witnessed that even local banks in emerging economies have been moving to that direction.
In our view lack of funding in the emerging economies means unemployment and poverty so that the benefits justifying more funding go well beyond above conclusion and they rely on the way of doing business by the microfinance sector. The micro finance providers do business with the real economy and mostly in rural areas; under the circumstances increasing their lending capacity would have the following positive results:
- To help farmers having access to credit and in so doing cut the vicious circle of agricultural financing;
- To boost local financial markets;
- To harmonize interventions along with the governments objectives to finance agricultural sector;
- Fix up affordable terms and conditions for loans;
- To increase both production and offer of foods;
- To contribute to a country’s inclusive financial system
Moreover, the benefits of traditional banking’s entry will be for all main actors: banks, MFI, final beneficiaries along with the financial market: banks can expand the areas of intervention and they can borrow on how to market financial services; MFIs can improve skills and be more acquainted with the banker profession. In a word we can say that management and marketing expertise will be dynamically matched.
Ascanio Graziosi
http://www.cambridgedata.com/GrqziosiAscanio