Getting South African banks to serve micro-entrepreneurs: An analysis of policy options

The lack of access to formal bank credit is one of the important problems faced by South African micro-entrepreneurs in the informal sector. Although the government has addressed this issue, private banks are still not interested in serving micro-enterprises. This article presents an analysis of the policies implemented by the government, as well as policies followed in other countries, to reach a conclusion with regard to the path to follow for solving this problem.