Focus on Poverty

This note explains Consultative Group to Assist the Poor's commitment to the twin objectives of:

• Increasing poverty outreach;
• Increasing impact on poorer people.

Further, the note studies CGAP's activities for deepening the poverty focus of microfinance. It informs about CGAP's key undertakings that include:

• Developing a poverty audit to integrate a poverty focus in CGAP's MFI appraisal format;
• Creating the poverty assessment tool for transparency on the depth of MFI poverty;
• Initiating the Pro-Poor Innovation Challenge program to identify and award small MFIs doing innovative work in deepening poverty outreach and impact;
• Conducting case studies to document MFI innovations for the poorest;
• Conducting action research to improve MFI performance in working with the poor;
• Integrating a poverty module in CGAP donor training;
• Taking out publications that explore the microfinance-poverty nexus.

Finally, the paper provides an overview of CGAP's key activities aimed to serve different stakeholders:

• MFIs:
  • Funding support through Pro-Poor Innovation Challenge and grants to MFIs;
  • Appraisals, business planning support, general strategic advice, and specific technical assistance to MFIs;
  • Training and capacity building.
• Member donors:
  • Training and capacity building for donors;
  • Development of tools and services such as the poverty audit and the poverty assessment tool.
• Industry:
  • Technical advice and exchange;
  • Tools and Services such as focus notes, publications and an online resource center in the form of the Microfinance Gateway.