UNDP Microfinance Assessment Report for South Africa

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Introduction

In brief, this report discusses the practical issues involved in Microfinance Services in the Republic of South Africa. The following issues are discussed:

South Africa’s Socio Economic Situation and the Existing Micro-Credit initiatives in the country: While current efforts reach only 24,000 of the estimated more than 4,000,000 “survivalist” and “microenterprises”, the existing programs indicate a wide acceptance of group lending, and considerable local expertise.
The Demand for Microfinance Services: Interviews in the poor Black villages of Northern Province indicate a high level of poverty and unemployment. Consequently, a high percentage of the residents are involved in very small scale economic ventures, principally petty trading. Villagers are enthusiastic about the possibility of receiving loans for these activities, and understand and accept the group lending concept.