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The debate between the proponents of maximizing sustainability, outreach and scale and thus serving many poor people (including poorer people) and the proponents of targeting 'the poorest of the poor' (discussed by Dunford in SED Vol. 11 No. 1) continues. The debate is essentially a healthy one, helping everyone involved in the industry focus on what matters: providing financial services to poor people. This article argues that MFI programmes should include the 'nonpoor' on the grounds that this more profitable business can crosssubsidize outreach to the poor, and because, without access to any financial services, vulnerable non-poor people are likely to be reduced to poverty when a crisis arises. Regarding 'the poor', MFIs wishing to service this group should offer savings and other innovative products, since poor people have few opportunities to utilize Grameen-type credit efficiently. Finally, the very poor or destitute may require relief services before they can use most financial products. The challe...

As levels of living deteriorate in tropical Africa, donors and government officials are searching for ways of finding and managing funds to establish smallscale (or micro) enterprises to increase family incomes, nutrition, and employment. Often these funds are provided by donors in cooperation with host governments and administered by existing government parastatal (Tanzania), a gouvernment ministry (Malawi), or nongovernment organizations (NGOs) (Kenya, Tanzania and Malawi). [In one case, Botswana, funds came from the national government and a separate government agency was established (Due and Kurwijila, 1991).]. How can these funds best be allocated and administered? Are nongovernment or government agencies more efficient? Which models have had higher repayment experience? What rates of interest have been charged? Should funds be allocated only to poor women (with greatest needs) or to middle income women with higher levels of education and income who, in theory, could provide better management of funds and higher rates of repayment since they have other funds on which to draw in emergencies? Should the funds be allocated to individuals or groups? Answers to some of these questions are found in the models tried in Kenya, Tanzania and Malawi. Although many of the programs are for both men and women, this report focuses on funding for women. Resume Avec la deterioration des niveaux de vie en Afrique tropicale, les donneurs et les hauts fonctionnaires recherchent les moyens de trouver des fonds, et de les gerer, pour la creation de petites (ou micro) entreprises en vue d'augmenter les revenus familiaux, d'ameliorer la nutrition et decreer de nouveaux emplois. Ces fonds sont souvent fournis par les donneurs en cooperation avec les gouvernements bheficiaires et administres par les entreprises parapubliques existantes (Tanzanie), un ministere (Malawi) oudes organisations non gouvernementales (ONG) (Kenya, Tanzanie et Malawi). Dans un cas, le Botswana, les fonds ont ete procures par l'Etat, et unorganisme public distinct a ete Cree (Due et Kunvijila, 1991). Quel est le meilleur mode d'affectation et d'administration de ces fonds ? Les organismes non gouvernementaux sont-ils plus efficaces que les orgnismes publics? Quel modele a enregistre le volume de remboursement le pluseleve? Quels taux d'interet ont ete perqus ? Ne devrait-on affecter les fonds qu'aux femmes pauvres (dont les besoins sont les plus grands) ou a celles disposant d'un revenu moyen, dont les niveaux d'instruction et de revenusont plus eleves, et qui, en theorie, pourraient assurer une meilleure gestion des fonds et des taux de remboursement plus eleves puisqu'elles possedent d'autres ressources sur lesquelles prelever en cas d'urgence ? Devrait-on allouer les fonds a des particuliers ou a des groupes? On trouvera les reponses a certaines de ces questions dans les modeles testes au kenya, en Tanzanie et au Malawi. Bien que nombre des programmes s'appliquent aussi bien aux hommes qu'aux femmes, ce rapport focalise sur les financements au profit des femmes.

Tap and Reposition Youth (TRY) was a multiphase initiative undertaken by the Population Council and K-Rep Development Agency (KDA) the oldest and largest microfinance institution in Kenya. The overall aim of the project was to reduce adolescents vulnerabilities to adverse social and reproductive health outcomes including HIV infection by improving their livelihoods options. The project was launched in low-income and slum areas of Nairobi Kenya where rates of HIV infection are alarming and where young women are disproportionately affected. TRY targeted out-of-school adolescent girls and young women aged 16-22. Initially the microfinance model was an adaptation of the adult juhudi group-based savings and lending model. The TRY model evolved over the course of the experiment moving from a minimalist savings and credit model to one that expanded upon social support and eventually responded to the particular needs of its vulnerable clientele. (excerpt)