An analysis of strategic issues in institutionalizing a financial systems approach for microenterprise development in Africa

Purpose – This paper seeks to look at failed development paradigms in West Africa, one of the world's poorest regions, and to argue that new and contextually relevant methods are needed to stem poverty, engage people in productive microenterprises, improve people's quality of life, and foster patriotism and civic involvement among citizens. Design/methodology/approach - Based on the view that microentrepreneurship is a way of life and a means of livelihood for West Africa's poor, and that lack of credit is a formidable obstacle to microenterprise development, the paper makes a case for institutionalizing a financial systems approach, which was developed by microenterprise financing practitioners to provide poor people world-wide with savings and credit services, leading to their self-sufficiency and integration into mainstream financial systems. The four stages of this approach are discussed, along with the tasks in each stage. Findings - The paper posits that implementing the approach must be a joint task among society's four key stakeholders in the public, corporate, non-profit and grassroots sectors. Originality/value - The paper concludes that a financial systems approach offers several prospects for citizens’ productivity, for political stability in their countries, and for their meaningful engagement in the world's delocalized economy.