Feasibility study for microlending scheme for the internally displaced in Ukraine
Established in 1951, the International Organization for Migration (IOM) is the leading inter-governmental organisation in the field of migration, providing services and advice to governments and migrants as part of the UN system. Starting in 2017, IOM began a KfW-funded project focused on strengthening the self-reliance of displaced and conflict-affected communities in Ukraine. The objective of IOM’s project was to support the Ukrainian government’s efforts to promote self-reliance and provide opportunities for displaced and conflicted-affected populations. As part of the overall project, IOM considered the possibility of a microlending scheme for affected populations, and IOM contracted IPC to assess the feasibility of such a scheme.
IPC began its work by identifying and mapping economic sectors with the potential to support small business activities and improve the livelihoods of internally displaced people. IPC’s assessed the existing demand for and supply of loans to microbusinesses. It then proposed a new microlending concept for IOM, involving a revolving microlending mechanism backed by a risk-sharing component, to be implemented in cooperation with development-oriented Ukrainian financial institution partners.