Anastasiya Stolyarova for The New York Times

Microfinancing to Improve Africa

By ANASTASIYA STOLYAROVA

The New York Times

Microfinancing has become a popular method of providing stable incomes for low-income individuals and improving the economic private sector in Africa. Microfinancing is similar to social welfare programs, such as unemployment, in the United States. African nations such as Nigeria, Ghana, and Kenya each possess over twenty microfinance institutions. In the African NGO Forum, non-governmental organizations (NGOs) agree that specific social areas need to be targeted in order to have successful microfinancing outcomes. Also, the education of citizens and annual collaboration between NGOs are ideas shared between African NGO Forum members.

Targeting specific social areas is seen as necessary in order for microfinancing to be successful. NGOs agree that creating general loans will not improve the economic situation. Standard education needs to be provided for the expansion of financial knowledge. In addition to vocational education, that will prepare struggling individuals with knowledge of crafts and careers, African Forum members concur that financial training will increase financial empowerment. Training would be provided through various courses or seminars, and through resources that will assist individuals with financial endeavors. With increased knowledge of finance, African people would be able to confidently participate in economic stimulation.

There are various religious sects and ethnic groups within Africa, which need personalized loans and microfinancing policies. As one non-governmental organization stated: “Microfinancing polices need to be as diverse as the places there are going into.” In addition to distinct religious and ethnic groups, the African NGO Forum wants to specifically target women and children in Africa. There is a major gender gap in the division of labor. NGOs agree that women and children need to be empowered so that they can be innovative and direct future business.

As a final point, African NGO Forum members gather that annual or biannual collaboration will ensure the success of microfinancing in Africa. Members would be able to discuss the successes and failures of policies during annual meetings. The delegate of Third World Network Africa expressed the importance of NGO collaboration: “Getting together in a forum will be able to develop a stronger Africa. Africa has so much potential it just has not reached yet.”