Microfinance, or financial services designed for women and men with limited resources, is an important tool in all We Effect’s areas of work.
We support savings and credit associations as well as member-based groups that focus on solutions for savings, credits and insurances. Since the groups are owned by their members, the members also control and own th esolutions. This is a major advantage, since this discourages people from borrowing too much and falling into a debt trap. In addition, any interest generated stays in the group or is distributed.
Since the State has an important role to play in increasing access to credit and savings, especially in rural areas, we also support organisations that seek to influence legislation so that access to financial services will benefit also those living in poverty.