The role of informal microfinance institutions in saving

etraining, subsidize the creation of small businesses; and serve as conduits for the delivery of
government services.
Government, in consultation and/ or collaboration with the cooperative movement, can
further promote the growth and viability of cooperatives by reviewing, amending and
enacting legislation, administrative procedures and requirements that are consistent with the
formation and growth of cooperatives in a rapidly changing socio-economic environment.
Furthermore, programmes to improve access to technology and to enhance capacity building
by strengthening organizational, leadership and financial skills of cooperative members also
need to be introduced or enhanced, to ensure the long-term viability of cooperatives. Finally,
Government needs to utilize cooperatives as competitive suppliers of goods and services along
with other businesses in order to promote the role of cooperatives as effective partners in the
poverty reduction.
Banks and other institutions engaging in microfinance must prepare social funds for the poor
and give them a chance to participate in a way that their skills can be used in the development
of the community. Meanwhile the banks commit a minimum percentage of their portfolio to
the micro enterprise sector or provide tax incentives as a means of investing a proportion of
their capital.
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