Burundi: Government unveils two financial mechanisms for the disadvantaged in rural areas

Jun 02, 2014

The Government of Burundi has set up two new mechanisms to help the impoverished rural population access credit, namely the Guarantee Fund for Credit to the Rural World (FG) and the Microcredit for the economically active poor (MCPEA).

The Government of Burundi has set up two new mechanisms to help the impoverished rural population access credit, namely the Guarantee Fund for Credit to the Rural World (FG) and the Microcredit for the economically active poor (MCPEA).

"The introduction of the FG and MCPEA is due to our desire to help
people living in rural areas to get out of the spiral of poverty," said Burundian Minister of Municipal Development, Dieudonné Giteruzi
on Friday (23 May),
as
quoted by Xinhua news agency.

The overall objective of FG is to provide farmers with guaranteed coverage to encourage financial institutions to increase access to credit by sharing risks with the Microcredit Rural Fund.

He added that the MCPEA is "a vast training for solidarity groups and will allow the economically active poor to access microloans and get familiar with the savings and credit culture."

This announcement follows the signing in May 2014 of a €3 million agreement to support the implementation of the 2012 - 2016 microfinance sector strategy between France, Burundi and the French Development Agency (AFD).

This project will contribute to the creation of microfinance products tailored to customer needs and will also support the development of a network of small businesses, which are considered a source of economic dynamism, job creation and income.ADNFCR-2976-ID-801724283-ADNFCR