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Linking Poor Rural Households to Microfinance. Background. Chronically food insecure (CFI) Government safety net program Graduate CFI - food/cash transfers More resilient, but not sufficient Need diversified approach to overcome systematic structural institutional and - PowerPoint PPT Presentation
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Linking Poor Rural Households to Microfinance
Background
– Chronically food insecure (CFI)
– Government safety net program
– Graduate CFI - food/cash transfers
– More resilient, but not sufficient
– Need diversified approach to overcome • systematic• structural• institutional and • attitudinal barriers
Program Frameworktowards food security– Provide alternative and accelerated pathways
– Deliberate and concurrent assistance
• access contextually relevant MF services
• stepped approach
• integration to markets
VSL Groups
Insurance
Value Chain Finance
SME Loans
Individual Linkages
Group Linkages
PSNP PLUS targeted households
Program’s Strategic FrameworkPathway to graduation from food insecurity
Stable Household Economy
Chronic Food Insecurity
Vulnerable To Food Insecurity
Asset Transfer
“Push” by Asset Transfer, VSLA, Access to tailored MF products, productivity increases
“Pull” by access to markets
PSNP PLUS graduated households in 3 yrs
Asset accum
ulationA
sset stabilisation
STRATEGIES
– Savings led financial service - VSLA
– MFI Linkage - existing/ new products
– Business skills
– Financial literacy
Why saving based MF to Food Security ?
– Insurance - bad harvest, illness
– Avoid cutting consumption, risky practices
– Smooth uneven cash flow
– Protect productive asset
– Diversify income source
– Improved human capital – nutrition, education, health
– Build asset – livestock, house, furniture, farm tools
– Improves social capital - better social network & information
– Life cycle events