Contributing to a financial sector that offers poor people access to financial services is an important condition for realising more investments by and for the groups with which Oxfam Novib works. Since 1995, microfinance has been an important element of Oxfam Novib’s programme, in different areas and with different tools. Grants, loans, guarantees and investments in equity have been used to build microfinance organisations (MFIs), and grants have been provided to other parts of the microfinance sector, such as MFI networks.
This policy paper analyses recent experience in the sector and includes an account of the size of microfinance work in Oxfam Novib. A survey chapter, based on work done by MicroNed in co-operation with Triodos-Facet, reviews future scenarios for the sector, and a major section outlines Oxfam Novib’s future policy framework for the role of microfinance in its rural development programmes. Among other topics this reviews the place of micro-banking, asset management, micro-insurance, microcredit, and developing financial services in rural development work.
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