The Haiti Earthquake: How microfinance is helping

At 16:53 on January 12 a massive earthquake hit Haiti and dealt a tragic blow to an already struggling country. It is estimated that over 100,000 people are dead. Many more are injured and access to medical care remains woefully inadequate. Huge areas of the nation’s capital and several adjacent cities lie in ruins. Up to one million people have been displaced–many of them forced to live in the street, injured, sick, and with little food or water. With so many basic needs still not met, it may be premature to think of the role of microfinance institutions (MFIs). Or, is it?

Several international microfinance organizations have launched fundraising campaigns to support their partners on the ground in helping earthquake survivors get back on their feet. These groups include: ACCION International, BRAC, FINCA International, Freedom From Hunger, the Grameen Foundation, Incofin and WOCCU. Funds are desperately needed in both the short-term as MFIs play their role of responsible corporate citizens, and in the medium-and long-term to ensure that the microfinance industry in Haiti thrives again.

MFIs…still the same role, though unusual times require extraordinary means
As we have seen time and again, dedicated microfinance institutions on the ground are carrying on, providing vital services to their clients. “MFIs are not, and nor should they be, asked to be relief organizations,” says Latortue. “But this does not mean business as usual. Financial services will be crucial to helping clients recover and rebuild. Financial services aren’t just a “nice-to-have” in this situation. Valuable services like accessing savings and transfers from families abroad can be a vital lifeline, and for some families the ability to access cash may mean the difference between life and death.”