National Micro-Finance Policy 2000.

The overall objective of this policy is, therefore, to establish a basis for the evolution of an efficient and effective micro financial system in the country that serves the low-Income segment of the society, and thereby contribute to economic growth and reduction of poverty by: Establishing a framework within which micro-finance operations will develop; Laying out the principles that will guide operations of the system; Serving as a guide for coordinated Intervention by the respective participants in the system; and Describing the roles of the Implementing agencies and the tools to be applied to facilitate development. Access to financial services should be available to both men and women. In order to achieve gender equity in the delivery of services, it may be necessary to make special efforts to incorporate features that make the services accessible to all.
The policy covers the provision of financial services to households, small holder farmers, and small and micro enterprises in rural areas as well as in the urban sector. It covers a range of financial services, including savings, credit, payments, and other services. Clients use these services to support their enterprises and economic activities as well as their household financial management and consumption needs. Financing for all types of legal economic activity is included, e.g. commerce, trade, manufacturing and agriculture.
This policy is guided by a vision of achieving widespread access to micro-finance throughout the country, made possible by institutions operating on commercial principles. The system as a whole will provide financial intermediation without necessarily relying on injections of external donor or government funds. Subsidies will no longer be needed, except perhaps for organizations pushing the frontiers of the system out to the most remote or poorest clients. Most of the micro-finance institutions currently operating In the country are small and/or new. A great deal of capacity building is required to bring them to the level at which they can operate with large outreach, quality services and profitable operations.
Institutions should have sound governing structures suitable to their institutional types. Governance may occur through various corporate forms of organizations or through cooperative ownership. Participation by clients may in some instances be a fundamental principle of the governance structure. However, the Government and political interference in governance should be avoided.