30. November 2011
Within the framework of the 19th Midi de la microfinance, ADA hosted an expert and a speaker from Peru to question the role of microfinance in access to energy, which nowadays hinders the development of 1, 4 billion people in the Southern countries.
Microfinance is not an end in itself. It is a development tool among others, giving to the poor the means to get themselves out of poverty. It began as a lever to facilitate self-employment, through its best-known tool, micro-credit, and has learned over the last 10 years to diversify its instruments.
Meanwhile, microfinance has also a role to play in access to energy, which is central in the fight to eradicate poverty. It is one of the Millennium Development Goals the international community has set itself for 2015. The role played by microfinance in access to energy is still modest, but its potential is enormous. Microfinance institutions are aware of the needs of the poor and have an extensive network enabling them to reach out to people in rural areas, where access to energy is most lacking.
Within the framework of the 19th Midi de la microfinance, ADA invited Peruvian microfinance institution CMAC Huancayo to share its experience. "As a double bottom line institution – with both financial and social purpose, we must provide our customers with products that improve their living conditions in the long run," said Luis Pantoja, Director of credits. The institution has been providing funding solutions for three green energy equipments for a few months, which meet the professional needs of their micro-entrepreneur customers: solar water heaters for inn owners in tourist areas, agricultural solar dryers for cocoa and coffee producers and improved cooking ovens for restaurant owners and bakers.
Facilitating access to clean energy has benefits for both health and economic development, while helping to protect the environment. In the context of global warming, it becomes necessary to rethink energy production and consumption. Direct access to clean technologies for households and micro-entrepreneurs opens the way for a sustainable development for all.
The 19th Midi de la microfinance, which was attended by 122 people, was organised in collaboration with the Bank of Luxembourg, with the support of the Luxembourg Cooperation and the support of Enovos and Linklaters. In addition, Linklaters also supports ADA through fundraising and skills sponsorship.
