Discussion Paper: Microfinance and HIV/AIDS

This discussion paper heightens awareness of the impact of HIV/AIDS on microfinance institutions (MFIs) and the communities they serve. The paper points out a range of options open to MFIs that decide to play a proactive role in HIV/AIDS-affected communities.

The paper raises the following questions:

• What can MFIs do in the face of a potential, or growing, or established HIV/AIDS crisis?
• How can they strengthen their institutions so that they can continue to serve communities affected by HIV/AIDS?
• How can they better serve their clients throughout?

To meet the pandemic in its face, the paper highlights the following:

• Access to microfinance services gives households a way to both prepare for and cope with crises;
• It is in MFIs' interest to consider to widen services to match the changing needs of their client base;
• MFIs can experiment with programmatic changes to address the HIV/AIDS crisis.

The paper finally suggests the following basic guidelines as a starting point that can be put forward to bring HIV/AIDS activities into an MFI's ambit:

• Listen more carefully to clients;
• Look for opportunities for institutional linkages to health organizations;
• Observe clients' access to as much high-quality information as possible;
• Understand the stage of the HIV/AIDS epidemic;
• Think broadly, and then act strategically;
• Document and share institutional experiments.