• Microfinance can be a critical element of an effective poverty Reduction strategy. Improved access and efficient provision of Savings, credit, and insurance facilities in particular can enable the poor to smoothen their consumption, manage their risks better, build their assets gradually, develop their micro enterprises, enhance their income earning capacity, and enjoy an improved quality of life.
• Microfinance services can also contribute to the improvement of resource allocation, promotion of markets, and adoption of better technology; thus, microfinance helps to promote economic growth and development. Without permanent access to institutional microfinance, most poor Households continue to rely on meager self-finance or informal sources of microfinance, which limits their ability to actively participate in and benefit from the development opportunities.
• Microfinance can provide an effective way to assist and empower poor women, who make up a significant proportion of the poor and suffer disproportionately from poverty.
• Microfinance can contribute to the development of the overall financial system through integration of financial markets.

In this plight GLOPEC is accumulating measures to develop a project which will improve:

• Capacity building for proper urban development
• Social capital and investment support for small scale enterprise
• Agricultural development
• It is also expected to provide training and logistical support for more than (1) one billion small and growth oriented enterprises with high employment generation potential to upgrade them to small scale enterprise level.
• Provide social grant to the poor and vulnerable in society which will implement policies towards micro small and medium scale enterprises projects to provide strategic interventions to address major constraints that affect the sector.
• The project seeks to provide requisite funding facilities and technical support for small and medium scale enterprise to improve their area of work.

The interest in microfinance defined above by GLOPEC has burgeoned during the last two decades: multilateral lending agencies, bilateral donor agencies, developing and developed country governments, and nongovernmental organizations (NGOs) all support the development of microfinance. A variety of private banking institutions has also joined this group in recent years. As a result, microfinance services have grown rapidly during the last decade, although from an initial low level, and have come to the forefront of development discussions concerning poverty reduction.