Economics Microfinance Questions
The role of microfinance in promoting sustainable water and sanitation is to provide financial services, such as small loans and savings accounts, to individuals and communities who lack access to traditional banking services. By offering affordable credit and financial products, microfinance institutions enable people to invest in water and sanitation infrastructure, such as building wells, installing water filters, or constructing toilets. This helps improve access to clean water and proper sanitation facilities, leading to better health outcomes, reduced waterborne diseases, and improved overall living conditions. Additionally, microfinance can support the development of water and sanitation-related businesses, creating employment opportunities and contributing to local economic growth.