June 2002

Microfinance and Households Coping with HIV/AIDS in Zimbabwe: An Exploratory Study

Photo credit: WHO/7032/PAHO/P.ALMASY

The widespread prevalence of HIV/AIDS in sub-Saharan Africa adversely affects millions of households. In recent years, microfinance has been proposed as a strategy to help the households of microentrepreneurs respond to the negative economic impacts of HIV/AIDS. This attention to the potential role of microfinance builds upon earlier research that shows that microfinance institutions (MFIs) that charge commercial rates of interest and use sound business practices can become operationally self-sustainable (Christen 2000) and help improve the lives of the poor and vulnerable non-poor (Sebstad and Cohen 2001). This type of MFI generally offers small-sized loans, often combined with savings services. An MFI may also offer business management training, health and nutrition education, and other types of services.

This study, conducted in Zimbabwe, sought to better understand the relationship between a microfinance program, Zambuko Trust, and how microentrepreneurs’ households cope with the impact of HIV/AIDS. The study also examined how HIV/AIDS is affecting Zambuko’s operations and what MFIs can do to lessen the impact of HIV/AIDS on their clients and operations.

• Study Methodology
• Country Context
• Zambuko Trust
• Characteristics of the Survey Sample
• Key Findings
• Conclusions
• Recommendations
• References and Additional Resources
• PDF format of summary (3.3 MB)

The principal investigator of this study was Carolyn Barnes of Management Systems International (MSI) in association with Erica Keogh, Nontokozo Nemarundwe, and Loveness Nyikahadzoi of the University of Zimbabwe, and Ellen Weiss of Horizons/International Center for Research on Women (ICRW).

The researchers would like to thank the following individuals and organizations for their help on this study: Tawanda Sibanda, David Kombanie, and Zambuko Trust; Tichaona Mushayandevu, Patrick Osewe, and Carl Henn of USAID/Zimbabwe; Sheilla Mativenga and the Zimbabwe Association of Microfinance Institutions; Paurvi Bhatt of the Step Forward, Abbott Laboratories Fund; Monique Cohen and Martin Hanratty/USAID Washington; Simel Essim of ICRW; and Joan Parker of DAI.

About Horizons

Horizons conducts global operations research to improve prevention, care, and support program. Horizons is implemented by the Population Council under a cooperative agreement with the U.S. Agency for International Development. Horizons is implemented by the Population Council in partnership with the International Center for Research on Women (ICRW), the Program for Appropriate Technology in Health (PATH), the International HIV/AIDS Alliance, Tulane University, Family Health International (FHI), and Johns Hopkins University.

Copyright © 2002 The Population Council

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19 Oct 2007