The present support programme will play a part in poverty reduction and the attainment of the Millennium Development Goals (MDGs). Its objective is to contribute to the improvement of the socio-economic situation of the population of the Central African Republic through the viable supply of financial products and services. This overall objective will be achieved thanks to viable microfinance establishments integrated into the national and subregional financial market, and will entail the following:

1. Improvement of the environment and institutional framework of the financial sector
2. Promotion and improvement of access to financial services by the poor and low-income populations
3. Seeking partnerships and cooperation with bodies and organizations active in the financial sector

• In March 2003 the Central African Republic regained a measure of stability and, following the democratic elections held in March 2005, is seeking to relaunch the peace and development process. However, microfinance in the Central African Republic remains at an embryonic stage.
• Today, the needs for microfinance services of the majority of the Central African Republic 's population remain unsatisfied, especially in rural areas. Accordingly, UNDP has launched a project for preparatory assistance to support for the microfinance sector in the Central African Republic , covering the period 2005-2006.
• To go further, UNCDF, UNDP, the Government and various players in the microfinance sector have drawn up a Programme for support for the emergence of an inclusive finance sector in the Central African Republic so as to afford the majority of the poor or low-income population sustainable access to products and services provided by viable microfinance institutions operating in a restructured legal and institutional framework.

• The Government (Ministry of Finance and Budget) will host the programme and designate a building to be made available to it.
• The programme will operate through three organs: the Steering Committee for the programme (CPP), the Investment Committee for the programme (CIP) and the Programme Management Unit (CGP).

• The objective of the programme is to operate throughout the territory of the Central African Republic . However, in this initial phase, the zones to be selected will have to meet the following criteria:
  • The existence of initiatives in the microfinance area and the possibility of development synergies with other projects whose impact could be strengthened by better access to financial services;
  • Regions where the poverty level is higher than average and a major proportion of the economically active population is employed;
  • Predominance of income-generating activities, particularly agricultural activities;
  • Highly dynamic and well-structured grass-roots groups and level of access and security.
• The beneficiaries of the programme will be the microfinance establishment monitoring unit, the National Microfinance Committee and the professional association, the providers of technical and financial services, and the poor and low-income populations.

• Midterm review in 2008
• Final evaluation in 2011

• Start-up of the project, US$ 1.2 million to be mobilized. The programme remains open to financing by other donors interested in the microfinance sector in the Central African Republic .