Good Practice Guidelines for Funders of Microfinance

October 1, 2006    

In the last 30 years, the microfinance community has learned a lot about what works (and what does not) in increasing poor people’s access to financial services. The Good Practice Guidelines for Funders of Microfinance capitalize on these lessons learned about basic conditions for successful microfinance, and translate them into practical guidelines for staff of funding agencies. Today, microfinance attracts funding from a range of funders, including bi-and multilateral agencies, development finance institutions, foundations, social and commercial investors, and international NGOs.

The Good Practice Guidelines are the result of a highly participatory process, including an 18 month period of field testing with staff of funding agencies working on all continents, practitioners, microfinance experts, and consultants. The intent is not to dictate one way to support microfinance, but rather to support diverse approaches and priorities within a framework of good practice principles. The Guidelines have been endorsed by the heads of 29 leading funders of microfinance, the MicroFinance Network, and the OECD’s Development Assistance Committee.

As a rapid reference document, the Good Practice Guidelines are intentionally concise. Many users will require more information, operational tools, and perhaps training to successfully implement the guidance. For more in-depth explanation, CGAP has developed an e-book version of the Good Practice Guidelines which links the guidance to relevant CGAP publications and practical operational resources. To access the e-book, please download the DNL-Reader available on this page.