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Topic Overview | id: 5294 Visits: 17794 Added:
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KO Overview | id:57023 Visits: 106 Added:
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| | The myth that poor households in developing countries are not creditworthy or able to save has been firmly put to rest in recent years. Poor households, it has been found, place special value on reliable and continued access to different types of financial services, available at reasonable cost and catering to their specific needs. Credit and savings facilities can help poor rural households manage, and often augment, their other wise meagre resources, thus enabling them to acquire adequate food and other basic necessities for their families, as well as invest in enterprises to sustain their livelihoods.
Since this discovery, microfinance, or financial services for the poor, has been hailed as the most important tool in poverty alleviation. However, not everyone agrees. According to Nimal Fernando, “There are three camps of thought on the issue of financial services for the poorest. The first camp rejects the hypothesis that the poorest can be reached with financial services on a sustainable basis. The second camp advocates that the poorest of the poor can be reached not only on a sustainable basis but also on a large scale. The third camp recognizes that the potential for reaching the poorest on a sustainable and a large-scale basis is limited but that the search for innovative approaches to expand the outreach to the poorest must be continued."
Policy-makers have an important role in facilitating this debate and also in creating the legal and economic environment within which suppliers of micro financial services can operate successfully. | |
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| | | Title | Sustainability Banking in Africa | | Author/ Editor | UNEPFI | | Content Language(s) | English | |
| Type of Document | Report | | Abstract / Description | The key aims of this report are to define what sustainability banking means in the African context, to analyze the current role of the finance sector in the promotion of sustainability in Africa and in so doing provide examples that are potentially replicable elsewhere across the continent.
The drivers, challenges and opportunities of sustainability banking in Africa are highlighted, along with a series of current product, process and market innovations that demonstrate the potential of sustainability practice within the African finance sector.
Evidence from the Report points to the emergence of a dynamic business case for sustainability banking in sub-Saharan Africa –derived from new corporate governance standards, better regulatory frameworks, and increased financial sector capacity to implement sustainability practices and to enter or create new markets. Although there is an impressive range of financial innovations supporting sustainability in Africa, there is clearly the need for further innovation regarding efforts to understand and address African specific sustainability problems. The Report deduces that greater access to financial services and SME support can provide solutions for these problems, especially as financial “exclusion” is seen as an acute issue of concern in Africa, not simply as a matter of inconvenience, but potentially as a denial of a basic right. | | Keywords | SUSTAINABILITY BANKING; FINANCE; BANKING | | Country | AFRICA | | Date of Publication/Issue | 2005 | | Download | | |
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| Publisher | UNEPFI | |
| Number of Pages | 12 pp | |
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