The Government’s major role in microfinance, as in
other sector of the economy, is to create macroeconomic stability and
conducive regulatory environment to enable development of sound financial
institutions that offer that microfinance services. Specifically, Government’s
direct functions include controlling inflation, allow interest rates to be
set free; promote a health credit culture through public awareness
programmes. To ensure that financial services are widely available, the
Government may take on a promotional role to support build capacity needs of
MFIs. According to policy, Government should not interfere in MFI’s
operations such as pricing, product development, loan terms etc. Ministry of
Finance has the responsibility of ensuring that microfinance programmes are
consistent with the policy and based on best practices.
Self employment activities such as
fishing, poultry, agriculture, sewing etc, are considered as
essential actors for achieving social and economic development in
developed and developing countries. Therefore, more emphasis and
support now should be given to these activities.
