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The Government’s major role in microfinance, as in other sector of the economy, is to create macroeconomic stability and conducive regulatory environment to enable development of sound financial institutions that offer that microfinance services. Specifically, Government’s direct functions include controlling inflation, allow interest rates to be set free; promote a health credit culture through public awareness programmes. To ensure that financial services are widely available, the Government may take on a promotional role to support build capacity needs of MFIs. According to policy, Government should not interfere in MFI’s operations such as pricing, product development, loan terms etc. Ministry of Finance has the responsibility of ensuring that microfinance programmes are consistent with the policy and based on best practices.

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What is New ...

Self employment activities such as fishing, poultry, agriculture, sewing etc, are considered as essential actors for achieving social and economic development in developed and developing countries. Therefore, more emphasis and support now should be given to these activities.






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