Microfinance Strategies for HIV/AIDS Mitigation and Prevention in Sub-Saharan Africa

This paper explores ways of ensuring the health of microfinance institutions in the context of the HIV/AIDS pandemic and asserts that microfinance as a tool can play a much larger role in helping to ease the financial and other burdens of those living with HIV and helping to promote behaviour change, vital to stemming the tide of infection.

The author finds that:

• MFIs operating in Sub-Saharan Africa are beginning to offer products designed to mitigate impact on the institution, clients or both;
• products currently being offered include credit and health insurance plus conventional loans and savings;
• Organisations - FINCA, FOCCAS/Uganda and Opportunity International - have begun to think strategically about the impact of HIV and the consequences for sustainability and client survival:
  • Operating results to date indicate that the provision of microfinancial services in an HIV context is not incompatible with the MFI's goal to reach operational and financial sustainability;
  • FINCA/Uganda reports financial sustainability of 126% as of July 2000.
• Some MFIs offer HIV/AIDS education conducted by staff or via partnerships with AIDS service organisations.

The author concludes that MFIs operating in Sub-Saharan Africa have not fully exploited the range of possibilities for either mitigation or prevention strategies and most do more.