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Microenterprise Development (MED) Protecting Women from HIV/AIDS
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Introduction
Poverty and economic desperation are significant underlying causes of the HIV/AIDS pandemic. Women are particularly vulnerable to the disease for economic reasons – a lack of livelihood increases incidences of transactional sex (in exchange for food or basic life essentials), coerced sex, multiple partners, early sexual debut, untreated sexually transmitted diseases, and early/unwed pregnancy.
Poverty also decreases the ability of communities to cope with the flood of AIDS orphans, straining the capacity of poor villages to care for these children within their tradition social systems. Impoverished families are not able to provide for themselves with the addition of orphaned children.
Remedy
By providing microfinance services, economic vulnerability can be significantly mitigated. Microfinance is the provision of savings, credit, and insurance services to owners of tiny businesses in impoverished communities. The availability of microcredit leads to significant and rapid improvement of household income.
Targeting women, who are most at risk of contracting the HIV/AIDS for economic reasons and tend to be the primary care givers of AIDS orphans and vulnerable children (OVC), with microfinance services is an effective and sustainable way to affect real impact on HIV/AIDS. Women in the developing world tend to be self-employed and are already poised to utilize a loan to expand their small enterprises. Likewise, women tend to invest their increased income in improving the lives of their children, including proper nutrition, healthcare, education and shelter.
Lending to women through a community banking methodology (groups of 20-30 members) that includes an AIDS education component provides an excellent investment:
- Payback rate of 97%
- Improved AIDS prevention
- Protection and education of children
- Savings for family emergencies and AIDS related expenses (economic resilience)
- Better nutrition for family members and people living with AIDS
Engagement Opportunities
There is massive outstanding need for microfinance. Opportunities for strategic partnering in Africa and Southeast Asia include:
1. Extending Microfinance to More Women
The demand for microfinance in the world greatly outstrips the supply. Extending the reach of existing microfinance institutions to rural women remains one of the great challenges in defeating poverty and properly addressing the needs exposed through the HIV/AIDS pandemic. Investing in the inherent capacity of rural women to earn their way to a better life requires a significant investment in expanding microfinance institutions, primarily by expanding the amount of capital these microfinance institutions have to lend.
2. Efficiency Improvements
Microfinance is generally delivered through microfinance institutions, which are managed as specialized and sustainable entities - in short, as a business. Improving efficiency means that more women can be served at even lower cost. Improving remote connectivity and investing in mobile front-end client interface systems and back-office improvements can significantly boost efficiencies.
3. Expanding Microfinance Product Mix
The dominant microfinance product is credit. However, women running their own small business also need sustainable access to other financial services, such as savings, insurance, and pensions. Investing in product development for microfinance institutions means that women have access to improved and needed financial services.
4. Expand Models of Care and Education
World Vision is integrating microfinance and HIV/AIDS care through close coordination between its community development staff and affiliated MFI. In this approach, peer educators work alongside loan officers. The loan officer manages his or her loan portfolio. The peer educator helps identify HIV/AIDS affected families, provides HIV/AIDS education, and supports the formulation of Care and Education Training Teams (CETT). In communities outside of World Vision project areas, the peer educators link CETT to other HIV/AIDS service providers. Investing in expanding the integration of MED and HIV/AIDS education strengthens the safety net of those upon whom orphans, vulnerable children, and people living with HIV/AIDS rely.
The main ways to become strategic partners in these three key areas include the provision of:
Capital
- Donated
- Lent
- Backstopped (e.g. stand-by letter of credit for commercial borrowing)
| Professional MIS & Control Systems
- Computer equipment
- Connectivity
- Consulting
- Technical innovations
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| Financial Products Expertise
| Programmatic Support
- “Adopt-a-program”
- Provision of products, services, management expertise to a pre-existing project
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Advocacy
- Lobby elected officials in donor and developing countries
- Network and outreach among peers
- Speak out publicly on key issues around empowering women
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Bosnia & Herzegovina - Microenterprise Development
Brazil - Microenterprise Development
Malawi - Reducing HIV/AIDS through Credit with Education in Karonga, Chitipa and Mzuzu
Mozambique - Credit with HIV/AIDS Education in Zambezia Province
Rwanda - Microenterprise Development
Uganda - Microenterprise Development
WILFund - Women's International Loan Fund
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