Rural Finance Programme

This programme is an initial IFAD operation designed to support development of long-term rural financial services for rural poor people. Savings and credit groups are a source of social empowerment, especially for women, and they benefit communities by enabling members to generate savings and access small loans. Through village banks people can access loans for investment in various income-generating activities. The programme is national in scope, but activities will be adapted and implemented in those areas where they can be most effective.

The programme has been designed to ensure that the poorest rural households will benefit as much as possible from its activities. Programme objectives will be achieved through investments in activities that work to:

• develop sustainable community-based financial institutions
• promote rural banking services
• increase small-scale production in contract-farming operations
• develop new and existing financial service products in rural areas
• establish a more efficient policy and institutional framework for rural finance

Source: IFAD