Microfinance and HIV/AIDS: Ethiopia

This note provides details of the USAID supported Microfinance and HIV/AIDS: Defining Options for Strategic and Operational Change training course. It was held in Addis Ababa, Ethiopia from August 4-6, 2004.

The course focused on how MFIs can mitigate the impact of HIV/AIDS on their organizations so that they can continue to be sustainable and serve their clients over the long term.

The note states that:

• During the 3-day course, participants discussed the challenges MFIs currently face; they also compared and contrasted 'ignoring the crisis' versus using a financial services orientation to protect the institutions and better serve affected clients;
• They discussed the inevitable market changes that are taking place, as clients' financial needs change at various points in the HIV/AIDS crisis, and how these changes transform the competitive landscape for microfinance;
• Participants reviewed options for creating linkages with other financial institutions, such as commercial banks and insurance companies, to strengthen and enhance the financial products available to clients.

The note concludes that the training was timely, as a number of MFIs had already been investigating how to provide prevention education to their clients.