Focus on Poverty

What is CGAP's commitment to poverty alleviation?

This note explains Consultative Group to Assist the Poor's commitment to the twin objectives of:

  • Increasing poverty outreach;
  • Increasing impact on poorer people.

Further, the note studies CGAP's activities for deepening the poverty focus of microfinance. It informs about CGAP's key undertakings that include:

  • Developing a poverty audit to integrate a poverty focus in CGAP's MFI appraisal format;
  • Creating the poverty assessment tool for transparency on the depth of MFI poverty;
  • Initiating the Pro-Poor Innovation Challenge program to identify and award small MFIs doing innovative work in deepening poverty outreach and impact;
  • Conducting case studies to document MFI innovations for the poorest;
  • Conducting action research to improve MFI performance in working with the poor;
  • Integrating a poverty module in CGAP donor training;
  • Taking out publications that explore the microfinance-poverty nexus.

Finally, the paper provides an overview of CGAP's key activities aimed to serve different stakeholders:

  • MFIs:
    • Funding support through Pro-Poor Innovation Challenge and grants to MFIs;
    • Appraisals, business planning support, general strategic advice, and specific technical assistance to MFIs;
    • Training and capacity building.
  • Member donors:
    • Training and capacity building for donors;
    • Development of tools and services such as the poverty audit and the poverty assessment tool.
  • Industry:
    • Technical advice and exchange;
    • Tools and Services such as focus notes, publications and an online resource center in the form of the Microfinance Gateway.

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