Sector Programme Microfinance VI

completed

The sector approach in the field of action promoting financial system development in the focus area of sustainable economic development in the Democratic Republic of Congo (DRC) aims to improve the sustainable supply of needs-based financial services. The target group of the measures is primarily micro, small and medium-sized enterprises (MSMEs) and the Congolese economically active population. In recent years, FC involvement has been designed in such a way that the individual measures interlock at several levels. Two MSME-oriented banks were founded, an established microfinance institution was refinanced with long-term debt capital and a fund was set up which professionalizes selected financial institutions through accompanying measures and provides them with medium to long-term refinancing capital. The sustainably established access to financial products (especially loans and savings products) enables rural and urban MSMEs to make the necessary investments in order to be able to take advantage of economic opportunities. Since MSMEs often operate in a labor-intensive manner, positive employment effects can be expected for the households of the entrepreneurs themselves, but also for their employees and their families. The sector approach therefore contributes to reducing social tensions in the population and thus to preventing conflict and promoting peace. In addition, access to needs-based financial products increases the scope for action of the target group to be able to react to extraordinary stresses, such as death or illness. The sector approach thus contributes to poverty reduction and to the Sustainable Development Goals (SDGs).