The contribution of microfinance in the face of climatic shocks: the case of rural households in the Atsinanana region

Abstract

Microfinance, through the provision of financial services makes it possible to meet the socio-economic needs of households such as access to food, healthcare and education for children. It also makes it possible to finance household income-generating activities. In this sense, it acts to strengthen the means of subsistence of the population. Microfinance as such intervenes and has an impact on the living conditions of households. Considering the aggravated realities of poverty resulting from cyclone, microcredit institutions are providing significant support to help households overcome the onset of shocks and limit the socioeconomic impact on livelihoods. Micro-financing therefore, is a tool for managing risks and disasters and reinforces the idea that if the population is sheltered from the dangers of disaster or at least can mitigate its impact, they will be more resilient in the face of shocks hence reduce poverty. There are improved living conditions, better stability and desirable security. During the period of cyclone causing hazard in the eastern part of Madagascar, microfinance was considered as a means of financial recourse for the population in order to finance their socio-economic and investment needs.