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Microfinance Institutions and Financing in Covid-19

03/09/2020
Reading Time: 9 mins read
mfi covid-19, financing
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Achieving financing inclusion has been earmarked as one of the key pillars needed to achieve the Sustainable Development Goals (SDGs).

This is important in view of that fact that access to finance can be used effectively to improve the economic livelihoods of poor and low-income population. Developing countries including Ghana have developed and implemented policies aimed at achieving financial inclusion. Financial inclusion has its foundation or principles based on microfinance methodology which is mostly delivered by Microfinance Institutions (MFIs).

Microfinance over the past years has clearly proven that financial access to the poor and low-income earners can be a sustainable enterprise and it can also help contribute to improving the livelihoods of poor clients in a sustainable way. These and other experiences have strengthened the call to use finance as a tool for poverty reduction.  

The COVID-19 pandemic which was initially thought of as a medical problem has turned out to have economic implications that has negatively disrupted most economies around the globe with developing economies being hardest hit.

Impact of COVID-19 on MFI

This development has als

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