Enabling private investment in informal settlements: Exploring the potential of community finance

In this paper, we explore the potential of community finance to enable private investment in informal settlements of Asia and Africa. Community finance refers to the savings and collective capacity of residents of low-income communities, working together. Community finance is founded on women-led savings groups within informal settlements, which are formed among neighbours who are unable to access formal financial services. These savings groups, typically of around 30 members, collect small deposits of money daily to enable savers to cope with unexpected shocks or loss of livelihoods, meet the cost of healthcare or education, and save for housing improvements.