Early and Broad Sectoral Interventions for Rapid Microfinance Development: Evidence from West Africa

While clear lessons have emerged to develop successful microfinance institutions (MFI) in post-conflict environments, learning on how to quickly develop vibrant microfinance sectors in these challenging environments is still elusive. While waiting for the right time to begin microfinance and then focusing on institution building, less experienced government and relief actors implemented poorly performing programs that were unsustainable, sowed confusion among clients, and wasted resources. In response, MF donors and practitioners are now promoting earlier and broader interventions that have the potential to reduce the number of poorly implemented programs and reinforce best practice initiatives. Sierra Leone and Liberia, two countries emerging from conflict, highlight the weaknesses of these past approaches in many circumstances and the promise of more recent and improved practices. This study was authored by Timothy Nourse of the American Refugee Committee with edits by Geetha Nagarajan & Sherry Sposeep of Chemonics International.