Serving Youth with Microfinance: Perspectives of Microfinance Institutions and Youth Serving Organizations

This report aims to investigate the applicability of microfinance to youth in conflict-affected areas. It also intends to provide guidance to development professionals to make sound decisions for youth and microfinance programming in conflict-affected areas. The report:

• Explains the research methodology:
  • Field studies to gather data on the supply side (microfinance providers) and the demand side (potential youth clients);
  • An electronic survey to gather data from microfinance providers to youth, including microfinance institutions (MFIs) and youth-serving organizations (YSOs).

• Lists research questions, which include:
  • How prevalent is microfinance with youth?
  • In conflict areas, are there any essential conditions to initiate microfinance for youth?

The report lists the following key findings:

• Both MFIs and YSOs serve youth with microfinance;
• Loans are the most preferred products;
• The products offered to youth in conflict-affected areas are not different from those in stable areas.

The report recommends areas requiring further research to improve donor and practitioner guidance, including:

• Further examination of the supply side;
• Exchange of experiences between MFIs and YSOs in serving youth with microfinance;
• A look at the gap between supply and demand.

The report concludes that:

• There is a need to expand the range of products and services accessible to youth;
• Special targeting of youth with microfinance in conflict situations can be potentially harmful;
• Resources could be invested in designing and implementing adapted products.