Case Study

Microfinance Associations: The Case of Microenterprise Alliance (MEA), South Africa

How does Micro Enterprise Alliance help the micro enterprise sector in South Africa?
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This paper discusses the Micro Enterprise Alliance (MEA) within the context of South Africa's diverse financial system. MEA was incorporated in 2000 as a network of providers of financial services, business development services (BDS) and NGOs. It seeks to build a thriving micro enterprise sector in South Africa and enhance the capacity, efficiency and effectiveness of micro enterprise development agencies. Its services include:

  • Advocacy and capacity building;
  • Networking and information dissemination;
  • Development of operational standards based on best practices.

The paper presents some of the constraints that MEA faces:

  • Limited outreach;
  • Excessive dependence on donor funding;
  • Absence of a policy on service charges.

The paper states that MEA has been able to build a good rapport with the government as well as donor agencies that bear 86% of its operational expenses. It presents some of MEA's strengths:

  • Expertise in advocacy;
  • Relations with donors;
  • Organizational set up and human resources.

About this Publication

By Buescher, L., Roth, M.
Published