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Vahatra, which means “roots” in Malagasy, is a microfinance institution based in Madagascar whose mission is to fight extreme poverty in the center of the Great Island. The originality of its intervention lies in the combination of savings, credit, social support services, and health insurance.
Despite considerable natural resources, Madagascar has one of the highest poverty rates in the world: 70% of the island’s inhabitants live below the poverty line, including 85% in rural areas. Madagascar’s economy relies primarily on agriculture. Furthermore, the country is highly vulnerable to climate change. In addition, access to financial services remains very limited: only 29% of households benefit from formal financial services, and barely 3% have access to bank loans.
Vahatra exclusively targets a population living on less than 2 US dollars a day, focusing primarily on women, agricultural activities, and trade-related activities. The MFI supports its clients both economically and socially to improve their resilience. The association thus provides these poor populations with the opportunity to benefit from advice, training, and loans, enabling them to develop an income-generating activity.
