UNDP Microfinance Assessment Report: South Africa

This paper states that findings from interviews in the poor Black villages of Northern Province services in the Republic of South Africa, indicate a high level of poverty and unemployment. Consequently, a high percentage of the residents are involved in very small scale economic ventures, principally petty trading. Villagers are enthusiastic about the possibility of receiving loans for these activities. Furthermore, the report discusses the practical issues involved in microfinance services in the Republic of South Africa. Specifically, it discusses South Africa's socio economic situation and the existing micro-credit initiatives in the country. Finds that:

• Current efforts reach only 24,000 of the estimated more than 4,000,000 "survivalist" and "microenterprises";
• The existing programs indicate a wide acceptance of group lending, and considerable local expertise;
• There is high demand for microfinance services shown in case studies of community based organizations.