Microfinance: What is it?
SOS Faim uses microfinance to fight extreme poverty, which causes hunger. Microfinance offers financial services to people who are locked out of the classic financial system to allow them to create or develop their own economic activities. We often hear about micro lending, but microfinance also includes savings, insurance and even money transfers. SOS Faim was the first Belgian NGO to support microfinance and one of the first to do so in Europe.
Microfinance as a weapon to fight poverty
Since 1987, SOS Faim has supported microfinance in Africa and Latin America to allow farmers to develop their agricultural activities in a sustainable manner. Although they could feed the world, the main victims of hunger and poverty are small farmers in the South. A lack of access to financing is a major constraint on the development of family farming. As traditional banks refuse to help farmers, microfinance has become a strong alternative in the rural and agricultural sector.
SOS Faim and microfinance
SOS Faim develops special partnerships with rural finance institutions close to farmers’ and rural producers’ organisations. The aim is to make suitable, sustainable and diverse financing that meets all family farming development needs available to farmers. Special attention is given to financing farm investments.
Micro lending: Women are fans!
Women have made micro lending a tool to aid economic and social emancipation, one that also allows them to feed their children properly and further their education. They are even favoured clients for many microfinance institutions. Excluded among the excluded, women demonstrate great respect for the opportunity that a loan can represent and systematically repay their loans better than men do.