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Purpose

This paper seeks to show how microfinance has contributed to poverty reduction and strengthening the risk management capacity of the poor.

Design/methodology/approach

Considers disaster preparedness of micro finance institutions (MFIs) especially in natural disasters, economic crisis and civil conflicts.

Findings

Finds that it is essential for MFIs to prepare a strategy for maintaining liquidity in a disaster situation, especially keeping disaster loan funds (DLFs) in reserve to help affected households.

Originality/value

Sees disaster management as a dynamic process that could ideally be developed during normal times and tested in actual disasters but it requires careful planning and commitment on the part of all stakeholders

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