MFI Information:

ESAF Microfinance & Investments Ltd. (EMFIL)
Mission: To positively impact the lives of more than 1 million low income families by 2015 by offering them exclusive financial services along with other services like health care, education, housings and livelihood support

Decent Work Area:

Formalization

Innovation:

Non-Financial Services: Business Development Services

Awareness raising campaign and business development services for the formalization of enterprises. Induce clients to register their business with the aim of long term sustainability

Results:

Positive impact on formalisation status and business practices:

• Strong increase (70%) in registration of businesses with relevant authorities
• Ownership of bank accounts increased but impact insignificant (2% increase)
• Awareness about government support schemes was affected positively (multiplied by 3 times in the treatment group but decreased in the control group), yet no increase in usage of government support schemes
• Maintaining books of accounts improved significantly by 15%
• Perception of the importance of the household enterprise for income generation increased by 17%

Inconclusive results related to the longer term impact, such as improvement of the social outcomes for the clients – for example:

• Negative impact on monthly household income: control group sees larger shift from lowest to next income group

Relevant links:

• 1 Page poster with summary of MF4DW intervention and MFI profile
• Microfinance and Formalisation of Enterprises in the Informal Sector: Awareness raising campaign and BDS for the formalisation and strengthening of growth-oriented enterprises.