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Initiative

Rural-Centered Finance with Education

THE CHALLENGE

An estimated 2 billion adults lack access to formal financial services and 58 percent of the world’s rural population does not have access to any sort of financial services account.

THE OPPORTUNITY

Global Partnerships aims to improve the livelihoods of rural households by investing in financial institutions that deliver credit and education tailored to meet their needs.

RCFE TRACK 1

WHO IS SERVED?

The target demographic is rural producers and microentrepreneurs living on less than $3.20 PPP/person/day.

WHAT IS DELIVERED?

Clients must receive:

  • Working capital or asset finance loans tailored to the productive activity, often delivered through group lending; AND
  • Basic financial literacy education.

May also receive:

  • Access to savings;
  • Training covering broad-based educational topics such as financial management, business skills, productive activities, health, life skills;
  • Improved market access.

WHY IS IT IMPACTFUL?

Rural household economic well-being, resilience and food security improve due to:

• Increased business profit from productive investments

• Diversification of income sources

• Increased investment in basic household needs

RCFE Track 2

WHO IS SERVED?

The target demographic is rural producers and microentrepreneurs living on less than $5.50 PPP/person/day.

WHAT IS DELIVERED?

Clients must receive:

  • Working capital or asset finance loans tailored to the productive activity, often delivered through individual lending; AND
  • Basic financial literacy education; AND
  • Training covering broad-based educational topics such as financial management, business skills, productive activities, health, life skills;

May also receive:

  • Access to savings;
  • Improved market access.

WHY IS IT IMPACTFUL?

Client empowerment and household economic resilience and food security improves as rural clients:

  • Make more informed decisions;
  • Smooth household consumption & better deal with shocks;
  • Sustain & eventually grow investment in productive activities; and
  • Reduce the distressed sale and support the accrual of assets.

Household income stabilizes and/or increases over time as rural clients:

  • Invest in new, improved, or growing productive opportunities, practices, inputs, technology, and/or assets;

By the Numbers

Current Portfolio as of December 31, 2018

$21.1MM Active Capital Deployed
15 Partners

Cumulative Portfolio

946,513 Lives Impacted

Initiative active since 2005