Case Study

Expanding Opportunities through Microfinance in Cape Verde

Providing access to financial services and sustainable financial institutions
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This case study discusses the Millennium Challenge Corporation (MCC)-funded technical assistance training and credit line expansion program in Cape Verde. It showcases the experience of ASDIS, a Cape Verdean MFI that participated in the program.

MCC and its MCA counterpart initiated a strategy to support Cape Verde’s economic growth through programs that targeted microfinance development and improved access to credit for farmers. The strategy reaches out to Cape Verdeans living in areas impacted by the MCC Compact’s Watershed Management and Agricultural Services project. It provides MFIs with technical assistance to increase operational and financial sustainability, credit for agriculture production and adoption of drip irrigation systems. The project has led to:

  • Growth and stability of participating MFIs’ portfolios;
  • More people honouring their microcredit loans;
  • Improved lending environment and better credit culture;
  • Sustainable economic development;
  • Sophisticated financial management;
  • Reduced MFI dependence on donor funds.

Participation in the program helped ASDIS to improve its microbanking practices and meet its goal of becoming financially and operationally sustainable.

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