How to respond to the need for financial services in rural Mozambique areas with a high HIV/AIDS prevalence rate

1. How to respond to the need for financial services in rural Mozambique areas with a high HIV/AIDS prevalence rate Dominique Brouwers ECIAfrica, Johannesburg

2. Objectives of the research • Training undertaken under USAID AMAP: Microfinance and HIV/AIDS – Mitigation strategies • Need for Action research to test how to implement these changes • Work with 4 institutions in Mozambique • Banco Oportunidade de Mocambique • Hluvuku-Male Yeru • Ophavela • Caixa das Mulheres de Nampula

3. Major Risks to Microfinance Institutions

4. Mitigation strategies • Risk prevention training staff and clients • Avoid increasing HIV/AIDS rate • Learn how to manage the disease (health and financial) • Human resources policy • Access to counseling, testing, treatment • Non discrimination • Staff replacement strategy

5. Overhead: Impact of HIV/AIDS on a Microfinance Institution

6. Mitigation strategies • Risk prevention training staff and clients • Avoid increasing HIV/AIDS rate • Learn how to manage the disease (health and financial) • Human resources policy • Access to counseling, testing, treatment • Non discrimination • Staff replacement strategy • Close monitoring of performance • Ratios linked to credit default, rate of savings, clients’ drop out • Changing needs of clients and community • Market study • Product development (savings, emergency loan, insurance products) • Adaptation of credit policy

7. Overhead: Increased Household Financial Pressure

8. Financial Products for Different Stage of HIV/AIDS

9. Market research Product design Understand clients’ changing needs Product development Limited Roll out Product review Pilot project Testing the Product Prototype Methodology for Market research/Product Development Preparation

10. Findings • Male Yeru: Needs assessment (focus groups) • Aware of the need for mitigation strategies for illnesses and other emergencies • High demand for savings products (not accessible at the moment) • Regulation issue : non-deposit taking institution • Need to form strategic alliance to provide savings product • Ophavela: adequacy of ASCA model and group policies • Group formation, rules on savings, rules on credit • Research through focus groups and matrix of un-foreseen events • Group situation influences: • Use and importance of the social fund • Focus of savings and credit • Willingness to play a role as a prevention agent/activist

11. Conclusions • Mainstreaming of HIV/AIDS mitigation strategy • As early as possible • Monitoring impact “Know your institution” • Market research is essential • “Know your clients” • Careful choice of research tools • Strategic partnership • Government (prevention, care) • AIDS Services Organizations • Other financial institutions • Insurance companies • Deposit taking institutions • Coordination within the rural finance/microfinance sector