Microfinance can help reduce poverty, claims bank founder
Microfinance can be used as a way of reducing poverty in Nigeria.Microfinance can be used as a way of reducing poverty in Nigeria.
This is according to Nobel laureate and founder of the world's first microfinance institution Professor Mohammad Yunus, who discussed the matter at the First Banks Impact Series, Vanguard reports.
The 2009 Sub-Saharan Africa Microfinance Analysis & Benchmarking report from the Consultative Group to Assist the Poor (CGAP) and MIX revealed many positive developments have occurred within the microfinance sector in Sub-Saharan Africa over the past ten years.
In particular, the performance of microfinance banks has been improving and their services are reaching a greater number of people.
Mr Yunus explained such institutions differ from traditional banks in this way, as they aim to help individuals on low incomes rather than simply making a profit.
"We should remember where microfinance came from, it is banking for the poor," he stated.
CGAP explained an economic downturn that occurred in Sub-Saharan Africa in 2008 led to greater support for microfinance from donors and investors, while the region's governments realised the need to improve access to finance.