Micro financing - allowing people in Africa to engage in self-employment, to build small enterprises and create sustainable agriculture - has proven to be highly efficient. This campaign aims to make world leaders aware of the importance of increasing micro-credits to African countries in order to fight poverty and the current food crisis.

How you can help

The year is 2008 and we are now half way through to the 2015 Millennium Development Goals, an agreement made to reduce poverty in the world. These international development goals set in 2000 are yet to be reached. Today, in spite of the credit crisis dominating the Western economy, we must remember that we still have an obligation towards developing countries and that the goals of the MDG should still be a high priority for world leaders. Increasing micro financing should be on the agenda for Western leaders in their pursuit of ending poverty.

Food scarcity - resulting from a massive increase in food prices (corn, wheat and rice) and no increase in aid - is already present in several third world countries. The food crisis is becoming a major threat and requires attention from the world. Food production in Africa is expected to halve by 2020, and increased quality in farming and production is essential. Between 60-99% of rural households earn a living from farming in Africa, and it is therefore believed that the impact of climate change will hit Africa harder than other countries.

Micro financing has reached over 100 million people, and has in many cases proven to be highly successful in the fight against poverty. However, while Asia received nearly 50%(47%) of the micro financing, Africa received less than 10% and is also clearly underrepresented when it comes to foreign direct investment. FARM, the Foundation for World Agriculture and Rural Life, says that “The reality remains that significant inequalities in financial service access are still prevalent, not only among different regions, but also in agriculture as distinct from other sectors.”

Banks and other parts of the private sector have shown interest in micro financing, a need that is clearly present in developing countries. Placid Njoku, who until recently was the Vice Chancellor of the University of Agriculture in Nigeria, is urging the authorities to provide the funding for large scale livestock, which would contribute to economic growth and encourage entrepreneurial development.

At the African Development Bank Conference it was argued that pro-poor economic growth is essential to improve food security, and that growth - when it comes to GDP, employment, food security and trade - is achieved through the agricultural sector. “In practice, many countries have not been able to take full advantage of the high potential of the agricultural sector due to the persistence of a variety of constraints (…) as well as high inequality in access to land, and limited access to credits for agricultural production.”

Micro credit is helping change Africa. Micro entrepreneurs are more capable of taking care of AIDS orphans; they are successfully surviving the conflicts of political unrest and violence that is present in several African countries; and it also gives women the ability to start their own businesses. Micro credit is bringing people out of poverty. Specialists have said that the 150 million people who have received micro credits could be increased four times to reach 600 million people in need. We should therefore encourage our world leaders to increase micro financing and to make the pool of capital for micro credits bigger.

It is not a hand out, but a hand up.