The objective of this component is to provide rural poor target beneficiaries (women and men) with opportunities to augment their social, cultural, political and financial power influences to achieve their goals. Strategies to achieve this goal include:

• To assist GOT in minimizing legal, regulatory and social barriers which constrain the active and effective participation of the rural poor, especially women and the landless, by creating more conducive economic and political conditions within MFIs to allow the poor to both access to funds for entering in viable demand driven income generating activities and assume decision – making powers within the institutions.
• To promote active participation of both women and men in the formation, operation and management of their grassroots organizations
• To develop business and technical skills through training and support with new technologies and innovations developed from a special study of income generating activities.

The PMU, in collaboration with its partners (e.g. Commercial Bank, ZCTS, NGOs), have the overall responsibility of this component.

This component consists of three sub-components namely:

• Reduction of the Legal and social barriers to the rural poor and increasing their use of MFIs and participation in MFI operations
• Promotion of greater target beneficiaries participation within grassroots MFIs
• Development of business skills

Reduction of the Legal and Social Barriers to the Rural Poor and Increasing their Use of MFIs and Participation in MFI operations

The objective of this sub-component is to assist the Government in recognising and understanding the inherent institutional limitations of MFIs; their risk profiles, their inaccessibility to formal FIs and capacities to comply with statutory reporting requirements and enabling appropriate remedial measures to be taken. Strategies for success include:

• Gender awareness training of MFIs members to appraise committee members, MFIs board members, officials and the broad membership of the need and importance of giving women equal access to MFI services
• Interactive leadership training for women with particular emphasis on leadership and communications skills, confidence building, organization, group dynamics, basic book-keeping and maintenance of accounts.

The PMU, in collaboration with its partners (e.g. NGOs), will have the overall responsibility of this sub-component by providing courses in gender awareness and on membership rights as well as study of legal and social barriers to participation of target beneficiaries in MFIs.

Promotion of Greater Target Beneficiary Participation within Grassroots MFIs

The objective of this subcomponent is to have greater active participation of both rural women and men in the formation, management and operations of grassroots MFIs. Success with regard to this subcomponent depend on

• Media Communication and promotional campaigns effected and assessed.
• Education campaigns including MFIs awareness in school curricula.
• Communication workshops for field trainers and MFIs

The PMU in collaboration with ZMU have the overall responsibility for promoting greater active participation of both rural women and men in the formation, management and operations of grassroots MFIs. Specifically PMU focuses on media and educational campaigns as well as communication workshops for field trainers and MFIs.

Development of Business Skills

The objective of this subcomponent is to assist Micro-entrepreneurs, particularly women to acquire financial and cash management, produce, design and innovation promotion and marketing networking and business growth skills. Strategies for success include

• To support the provision of business and skills training for micro-entrepreneurs particularly women
• To undertake study tours to enable participants to acquire new skills and knowledge in existing and potential areas of their business operations.
• To offer apprenticeships to micro-entrepreneurs to acquire knowledge in relevant fields.

The PMU, in collaboration with its partners, will have the overall responsibility of this subcomponent. Overall, the Programme would finance business skills courses and business exchange visits for MFI members.