Conflict and Post-Conflict Environments: Ten Short Lessons To Make Microfinance Work

This progress note explores key success factors of microfinance programs in conflict and post-conflict environments.

The note lists ten lessons for making microfinance work in difficult environments. They include:

• Focus on the client's security;
• Work with trusted institutions;
• Provide a range of services, with clear distinction between relief and financial services;
• Adjust product design and delivery to deal with instability and disruptions;
• Separate microfinance from relief operations;
• Share information, cooperate and collaborate with stakeholders;
• Plan long term and design funding mechanisms for continued development of program;
• Develop human resources and ensure staff safety;
• Ensure information and communication access to staff and systems;
• Maintain portfolio quality with strong information system to monitor payments on a daily basis.

Finally, MFIs should be capable of adapting and improvising, while remaining focused on portfolio quality and long-term sustainability.