Rural Finance Expansion Programme

This programme aims to improve the livelihoods of poor rural households through enhanced access to financial services and sustainable economic growth. The primary target group encompasses economically active small and micro-entrepreneurs and smallholder farmers, with an emphasis on women and young people.

The objectives of the programme will be achieved through strategic partnerships, innovation and outreach. The strategic partnerships component aims to enhance the capacity of financial service providers to deliver demand-driven services in rural areas. The innovation and outreach component seeks to improve the efficiency and sustainability of rural financial services.

Measures to stimulate demand for financial services include, among others:

• Helping beneficiaries participate in savings and credit activities to build their financial history
• Encouraging savings to reduce vulnerability to fluctuations in income and food security
• Establishing a ‘social fund' for consumption or emergencies
• Developing value chains to include the target group.

Programme coverage is national, with specific target areas based on the outreach of financial institutions and service providers involved. Preference is given to areas not served, or underserved, by financial services.

Source: IFAD