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. Microfinance is just one of seven activities/strategies identified by UYF
to carry out its mission.

UYF has commissioned Vulindlela Development Finance Consultants to assist with the development of its delivery model for microfinance. As a first step, UYF has asked Vulindlela to prepare a paper on best practices, drawing on lessons from leading organizations in Africa.

While it takes three or more years of immersion and study and experience in microfinance to fully appreciate all aspects of best practices, this paper will accelerate the learning process and will facilitate informed decisions by UYF staff on the best way forward for the organization’s microfinance initiative.