Field Manual - Supporting Microfinance Through Grants in Post-Crisis Settings

Supporting MFIs in countries recovering from conflict or natural disaster
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This manual describes how grants can effectively support MFIs in post-crisis situations. The guidelines aim to help practitioners outline options for supporting MFIs in post-crisis environments through grants and other forms of technical assistance. MFIs operating in post-crisis settings have a unique set of needs and characteristics. Without external support, MFIs often fail to survive the many crises that they face. Grants can play a critical supporting role, but they must undergo a different evaluation process than traditional grants. The manual states that poorly targeted grants can impede efforts to build a sustainable microfinance sector. It identifies four steps towards supporting microfinance through grants:

  • Assess operating environment for minimum political stability, population stability and sufficient cash-based economic activity;
  • Assess internal capacity of grant program for sufficient qualified staff, access to microfinance expertise and donor coordination for long-term funding;
  • Design a program for supporting microfinance through grants;
  • Conduct institutional assessment of MFIs.

In conclusion, the manual states that if all environmental preconditions are met, and the grant program and MFIs have adequate management capacity, grants can successfully support the short-term and long-term goals of MFIs.

About this Publication

By Ersenkal, E.