Case Study

Microfinance in Post-Conflict Situations: A Case Study of Mozambique

Is it possible to establish sustainable microfinance services in post-conflict situations?

This short paper discusses the role of microfinance in facilitating effective development processes in environments coping with the impact of war.It examines the case of Mozambique to examine the provision of microfinance services in a post-conflict environmentThe article finds that post-conflict microfinance (PCM) has the potential to assist poor people affected by conflict, and is an appropriate intervention even in difficult circumstances because it requires only a small number of essential pre-conditions:

  • Low intensity of conflict
  • reopening of markets
  • long-term displacement

The paper argues that microfinance programmes should be implemented in the early phases of post-conflict recovery as PCM:

  • Provides access to financial services when other providers have ceased to operate
  • Enables the self-employed to resume economic activity
  • Supports the reconstruction of the financial system, and
  • Facilitates a smooth transition from short-term humanitarian assistance to longer-term development

The article concludes that with strategic planning of institutional, operational and financial factors the provision of sustainable microfinance services to the poor in post-conflict situations is both possible and desirable.

About this Publication

By Frasier, S. & Saad, M.
Published