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Question of the Week 9

How can targeted finance schemes be promoted to stimulate businesses oriented towards inclusiveness?

Reactions (5)

Bayite-Kasule, Stephen - Netherlands Embassy,Kampala
2016-09-2 10:32

No doubt, targeted finance schemes can catalyze pro-poor and innovative business models which can foster inclusiveness. The extent to which this is attainable is dependent on the "nature of financial targeting" and how strong the business case is and therefore the likelihood of being inclusive. In many instances, financial schemes are poorly designed due to lack of up-to-date information on the dynamics within  markets.

Targeted financial schemes are not any different from commercial loan providers in the sense that they depend a lot on risk... read more »

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Joy M. Kiiru - University of Nairobi and Partnership Resource Center -Erasmus University
2016-09-2 11:28

Targeted finance schemes refer to special financing schemes whose main objective is to boost access to credit by certain enterprises or ventures. These schemes arise out of discretionary public policy or discretionary individual decisions to reach certain enterprises or entrepreneurs with credit. The sectors/enterprises targeted by these “special” finance schemes are deemed to generally have significant importance on the economy. In the case of public policy; targeted finance schemes may be used to promote inclusive growth for entrepren... read more »

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Agnieszka Kazimierczuk - African Studies Centre Leiden
2016-09-4 14:21

Targeted finance schemes could be used to promote inclusive businesses by supporting programmes that encourage employability.
Lack of practical skills and skills’ mismatch are often mentioned as reasons behind high unemployment rates, especially among African youth. Some multinational companies (MNCs) have already dedicated their own funding to sponsor initiatives that aim at closing the skills’ mismatch gap by providing training in the areas where the employment is desirable (and often aligned with the skills demand coming from the MNCs). The... read more »

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Magezi Stephen - Umama
2016-09-5 12:58

The poor who are clients of targeted finance schemes live at the base of the global income pyramid (the so-called ‘base of the pyramid’ or Bop), lack access to markets providing essential goods and services. This is due to their low and unstable incomes, and to the fact that they often live in places with inadequate or non-existent infrastructure. There is often a lack of market information, for instance about consumer choices and prices. As a result of monopolistic or oligopolistic structures and the lack of infrastructure and consumer protect... read more »

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2016-09-9 12:53

“No doubt, targeted finance schemes can catalyse pro-poor and innovative business models which can foster inclusiveness”. Although contributors held some different opinions with regard to the impact, goals and direction of targeted finance schemes, no one appeared to disagree with this statement of mr. Stephen Kasule from the Dutch Embassy in Kampala on the general value of such schemes.

One of the main obstacles for the success of targeted finance schemes is that programmes with a high likelihood of yielding financial, rather than social or... read more »

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