Acquiring revolving local capital

Description

Acquiring revolving local capital involves mobilizing financial resources within a community to create a self-sustaining fund that is continually replenished as loans are repaid. This strategy enables local initiatives, small businesses, or development projects to access affordable financing, reducing dependency on external funding. By recycling capital, it addresses barriers to credit, stimulates local economic activity, and empowers communities to respond flexibly to evolving needs, fostering long-term resilience and self-reliance.

Implementation

This strategy features in the framework of Agenda 21 as formulated at UNCED (Rio de Janeiro, 1992), now coordinated by the United Nations Commission on Sustainable Development and implemented through national and local authorities. Agenda 21 recommends establishing a revolving fund for credit to rural entrepreneurs and local groups in order to facilitate the establishment of cottage industries/business ventures and credit for input to agro-pastoral activities.