The Umsobomvu Youth Fund is a government agency tasked with supporting the growth and development of youth in South Africa, including improved livelihoods through employment and self-employment. UYF commissioned this paper on best practices, drawing on lessons from leading organizations in Africa, to accelerate the learning process and facilitate informed decisions by UYF staff on the best way to move the organization’s microfinance initiative forward.

This paper divides the discussion of best practices into three parts:

• Microenterprise Lending Methodologies,
• Management Sustainability, and
• Financial Sustainability,

and presents case studies of successful microfinance institutions.