Microfinance and HIV/AIDS: Defining Options for Strategic and Operational Change

This paper presents a comprehensive methodology for the analysis of issues and effects of HIV/AIDS on microfinance institutions (MFIs). The paper presents modules for analyzing HIV/AIDS linkages with microfinance and details processes for institutions operating in high HIV/AIDS prevalence regions:

• Comprehending client risk and costs due to HIV/AIDS;
• Differentiating between HIV/AIDS infected and HIV/AIDS affected individuals; developing products accordingly;
• Discussing HIV/AIDS with clients and analyzing market changes due to HIV/AIDS;
• Developing institutional strategies to cope with environmental changes due to HIV/AIDS.

The paper compiles lessons for MFIs and recommends:

• Assessing HIV/AIDS and its impact as a preventive measure;
• Reorienting market focus towards non-infected clients;
• Removing myths and rumors about HIV/AIDS in client groups;
• Augmenting policies and procedures for improving operational response.

The paper presents exercises that are designed for a workshop-type setting. The training workshop is meant to provide MFI board members, managers, and staff with tools to undertake the necessary changes in their institutions.