Thank you colleagues for managing this discussion on PPP. It is quite timely. ... PPP has potential for Leveraging Finance? YES. But for this to be reliased, I think there is a need for mutual understanding on access to finance, especially to the poor. I strongly believe that this is a highly misunderstood sector. For example microfinance institutions (MFIs) have expanded their operations in many African countries, now penetrating virtually every village, and reaching the very poor. They are playing a great role in supporting the poor access alternative financial services than the exploitative individual money lenders, pawn shops, etc. The beneficiaries (rather customers, clients) are appreciative of their existence, and regularly using the service. ... Unfortunately, so far, these financial service providers have been going alone, not integrtated with other service providers (e.g agric, health, value chains, etc), -- services which also target SAME poor!! This greatly limits their potential positive impact on their customers. ... Why no integration? Two answers: 1) The financial service providers do not bother much about to integrate with other service providers (or the potential positive impact on the poor). 2) The other service providers also do NOT bother about such integration, regardless of the potential impact. And, perhaps 3rd, the other service providers consider the financial service providers are just there to MAXIMIZE profit (as the Individual money lenders, which they said they are replacing!). Most important, there is no agreement, or consensus on the INTEREST RATE the financial service providers are charging. And there has not been any forum which gives attention to such issues.... Can this forum be the one to highlight on this very important issue... I look forward to hear from you all... Regards, Getaneh.
Mr. Getaneh Gobezie