A framework for World Bank Group support for development of micro, small enterprise, and rural finance in Sub-Saharan Africa

The framework presented in this report explores how the resources of the Bank Group as a whole can actively help Sub-Saharan Africa to foster private sector growth, strengthen the institutional underpinnings for product and financial markets, and facilitate the entrepreneurial eforts of the poor to earn sustainable livelihoods. The Bank's strategy is to increase access to financial services by small enterprises and low-income households by addressing three principal areas: 1) Fundamental issues - the policy, legal, and regulatory frameworks that allow innovative financial institutions and instruments to develop; 2) institution building - exposure to and training in best practices that banks and microfinance institutions need to expand their outreach and develop sustainable operations, along with performance-based support for capacity building; and 3) innovative approaches - leasing, lending, and other products that the Bank can use to increase access to financial services. While common principles apply to developing financial systems that serve the majority of African populations and businesses that lack access to banking services, this strategy differentiates between the financial and development needs of microenterprises, small and medium-scale enterprises, and rural households.