Microfinance for Infrastructure: Recent Experiences

This paper highlights the importance of microfinance in meeting the challenge posed by failure in provision of community infrastructure, including water and sanitation services, to the urban poor.

The document lists the objectives of the workshop:

• Sharing current experiences that highlight the growing sector of microfinance in infrastructure;
• Identifying sector gaps and challenges to effective community infrastructure investments;
• Exploring appropriate steps for capacity building, including the imparting of training to microfinance institutions/NGOs for facilitating access to infrastructure credit.

Detailing the urban infrastructure programs of various funders, the paper recommends a detailed action plan for the government, external support agencies, financial institutions, microfinance institutions, community-based organizations to create community infrastructure for the poor:

• Changing the attitudes of all stakeholders and raising awareness for community infrastructure;
• Building the capacity of the poor as well as the service providers;
• Strengthening the policy environment;
• Diversifying and innovating in order to meet customer needs;
• Maintaining quality while scaling up.

The paper concludes that all the stakeholders need to associate productively in order to achieve the goal of community infrastructure for the urban poor.