covid-finclusion, Apr 14, 2020
In 2010, the Centre for Financial Inclusion (CFI) published a paper by Daniel Rozas called Weathering the Storm, reviewing 10 MFIs that faced existential crisis, some having survived and others not. The paper was written in the aftermath of the 2007-08 global financial crisis and its subsequent ripples across many microfinance markets.
Today the sector is facing a crisis both broader and deeper than anything that’s come before. It is not alarmist to say that the threat – to clients, their business, financial service providers and the whole ecosystem that supports them – is existential.
In recent weeks, there has been a cacophony of responses as different stakeholders try to get a grip on what’s happening and what comes next. We’re mindful not to add to the noise without adding value. The value, we think, is in extracting just the applicable lessons from previous crises, matching them to the complex array of challenges being faced today, and doing so within the framework of an illustrated guide that takes that CFI paper as its starting point. So to this end, the European Microfinance Platform (e-MFP), CFI and the Social Performance Task Force (SPTF) are launching a collaborative blog series that will try to help practitioners, investors and other stakeholders weather this storm.
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