The MBP Reader on Microfinance and HIV/AIDS: First Steps in Speaking Out
The paper presents a compilation of early writings on the inter-linkages between HIV/AIDS and microfinance. According to the paper, income and savings are crucial weapons against impact of HIV/AIDS. It also argues that microfinance services can help families increase their income and build their savings.
The study provides an overview of how microfinance relates to HIV/AIDS while cautioning careful use of microfinance as a tool for combating HIV/AIDS. It also attempts to quantify the effects of HIV/AIDS on microfinance institutions (MFIs) in Africa using early survey results.
The paper presents specific experiences of MFIs working in high-prevalence HIV/AIDS areas and suggests a range of possible responses to HIV/AIDS:
- Developing products that help mitigate the effects of HIV/AIDS to ensure productive use of financial services;
- Integrating preventive education into MFI operations without affecting financial sustainability;
- Monitoring and insuring against defaults arising out of illness and death;
- Planning for high-risk loans given to clients identified as having AIDS.
The paper concludes that HIV/AIDS will negatively impact MFIs, their clients and their families, so MFIs should seek to better address the crisis for the sake of their clients and themselves.
