PRESS RELEASE: CARE Releases Report: Microfinance in Africa: “Bringing Financial Services to Africa’s Poor”

Source: CARE.

Press release not available online.

WASHINGTON, DC, September 16 – As banking institutions worldwide flounder, CARE – a leading humanitarian organization that reaches more people in Africa with financial services than any other international group – today unveils a new report that shows that its unique approach to providing Africa’s poor with financial services is thriving.

The Microfinance in Africa: Bringing Financial Services to Africa’s Poor report shows that CARE Village Savings and Loan Associations (VSLAs) are giving women at the very bottom of the world’s economic ladder the means and confidence to build more prosperous futures for themselves and their families.

“Nearly four decades of global microfinance experience have shown us that when poor people – primarily women – have access to basic financial services, they can change their lives and build stronger communities,” says Dr. Helene Gayle, president and CEO of CARE. “When women make an income, they
typically spend it improving the education, nutrition and health of their families – creating a multiplier effect that can lift entire communities out of poverty.”

CARE VSLAs are built by women living on less than $2 a day who collectively save pennies each week and make small loans to each other to support new business ventures, such as farming, jewelry making or beer-brewing. Because members borrow from each other, there is a low default rate on loans – and much lower interest rates than the 95-100% that can be charged by traditional moneylenders.

CARE’s VSLA approach is part of its larger Access Africa program that aims to bring financial services to 30 million people in 39 African countries over the next 10 years – at least 70 percent of people served will be women.

According to Lauren Hendricks, Executive Director of Access Africa, “CARE has pioneered a microfinance methodology that has worked with more than 1.2 million people around the world. It is exciting to think of the monumental and sustainable change that will take place when we reach 30 million of the poorest people in Africa.”

Founded in 1945, CARE reaches more people with financial services in Africa than other international organization. CARE places special focus on working alongside poor women because when equipped with the proper resources, women have the power to help whole families and entire communities escape poverty. In 66 countries, women are at the heart of CARE’s community-based efforts to improve education, health and economic opportunity.

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