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Case3

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Submitted By zaioona85
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October 17, 2014
October 17, 2014 zainab Mohammed – Nour hamdan – batool bushail – fathea alsomali

zainab Mohammed – Nour hamdan – batool bushail – fathea alsomali

FINANCE IN EMERGING MARKET – FIN 798 - 126 basix FINANCE IN EMERGING MARKET – FIN 798 - 126 basix The BASIX case as I believe is very interesting case because BASIX positions itself remarkably as microfinance or as other may call it a rural livelihoods promotions institution (outstanding institution). It has a strong leadership skills, strong culture as well and most of all a strong process.
This institution was targeting borrowers at remote locations, theses borrowers are approximately 60,000 borrowers distributed across 4000 villages upon 30 district, and these areas considered rural areas. In addition, these borrowers either represented themselves or represented a group of several clients, which made them more reliable for all the members. The minority non – borrowers were buying life and weather insurances. Most of BASIX clients were working in agriculture with varying household and income and the few remaining of the borrowers were not working in agriculture (self-employed), and the labor’s wages depended on wages solely and they were rare).
Nevertheless, BASIX had so many challenges and risks associated with their aim. For instance living in rural areas would suggests that the financial services are not available. In addition, because most of the borrowers are working in agriculture, it means that the institution will face some uncertainty in regards to the weather (some seasons may have high crop and others do not) which will reflect on their income.
Another point is that the finance is a risk that they share is the financial risk because farmers tend to pay their expenses when the harvest season comes, therefore if the season changes and the crops are not

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