Microfinance and HIV/AIDS: Strategic Partnerships

This document recommends strategic partnerships between MFIs and other service providers like AIDS Service Organizations (ASOs), banks and insurance companies that would help MFIs use their financial services platform to provide HIV/AIDS related health and social services. This would also stimulate client behavior change and help vulnerable clients protect and accumulate assets. Such partnerships would help MFIs to:

• Provide HIV/AIDS information and services to clients and staff;
• Provide financial services that it is not legally allowed or does not have the capacity to provide;
• Improve efficiency by drawing on partners expertise, thereby reducing costs and mistakes;
• Better manage financial risk associated with AIDS affected clients defaulting on loans.

The paper also describes products and services that result from MFI partnerships, partnership structures, contents of a partnership agreement and pitfalls that MFIs should avoid.