How Microfinance Associations Add Value - 2 Observations with References from the Association of MFIs of Uganda (AMFIU)

This paper provides the rationale of microfinance associations with references from the Association of Microfinance Institutions in Uganda (AMFIU). It states that microfinance associations should not be regulatory bodies. The competitive edge of microfinance associations lies in improving the informational efficiency of the sector.

The paper states that development agencies need to tighten their conceptual and programmatic grip of microfinance associations. Development partners should base their support to microfinance associations on their economic edge, namely informational efficiency.

Finally, AMFIU and other microfinance associations throughout Africa deserve support. They can contribute significantly to vibrant microfinance sectors in particular, and strong private markets in general. If this potential is unleashed, the decade-odd experience of development support to microfinance associations will pay off.