News

11.08.2012

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Elisabeth

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Is there a place for microfinance in Madagascar?

The UNDP reported on United Nations Lions Day that 8 out of 10 Malagasy have been living on a dollar a day since 2008.
Madagascar suffers from extreme poverty. 50.5% of the Malagasy population are malnourished. Women and children are most affected by the phenomenon.
The island looks unable to achieve the three objectives of the Millennium Development Goals: primary education, reducing child mortality and improving maternal health.

Malagasy microfinance was born in the 1990s. It was created to counterbalance the traditional banking system, but without much success.

Today, national institutions, the state and foreign investors deliver microfinance services in Madagascar. Each year, more and more households benefit from microcredit and are able to develop business activities.
This solution, which should be a simple assistantship at the beginning, is fully integrated in the national fight against poverty. There are 21 microfinance institutions in 22 regions of Madagascar. It is becoming a real success.

Microfinance is particularly valuable during the current crisis. The tool is so valuable that the government decided to create a national strategy for microfinance in 2011. Since then, the sector continues unabated. Laws are constantly being optimized and a national database was put in place.

Plans for the future are ambitious: the state created an association of national banks to launch mobile banking services. With these new technologies, Malagasy microfinance can reach more people and contribute to a sustainable reduction in national poverty.

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