Maximizing Aid Effectiveness in Microfinance

Identifying core elements to improve the effectiveness of donor support to microfinance

This report highlights five core elements of effectiveness that are key to improving the way in which development assistance agencies and other funders support financial systems for the poor. These core elements emerged from the 17 Microfinance Donor Peer Reviews facilitated by CGAP and have been formalized in the updated “"Donor Guidelines on Good Practice in Microfinance."” The report identifies the following key elements for donors to be effective:

  • Agency-wide vision in line with international good practice;
  • Sufficient technical expertise to manage operations;
  • Transparency about microfinance programming and performance;
  • Systematic application of lessons learned;
  • Ability to work directly with the private sector.

About this Publication

By Cook, T.