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Abstract
In South Africa a recent government study laid the foundations for improving access to
financial services for rural people. More is however needed than simply stating the policies. It
is argued that policies do not differentiate target groups adequately. This can result in
inefficient implementation of policies. The concept of a broad range of institutional possibilities
to improve access to financial services, none of which specifically provides a conclusive model, is
considered to be realistic. The idea is to muster this range of possible forms into a co-ordinated
effort to increase access to financial services for rural people in all rural areas. This paper
emphasises the reality of the situation when choosing policy directions. NGOs, commercial
banks and the Post Bank do not hold the primary key to improving access to financial services
in rural areas in South Africa. Several studies discussed the broad range of possible
institutional forms in the rural areas of South Africa. The role of decentralised financial systems
has not been the focus point of any of these studies. It is argued that fertile ground exists in
South Africa for decentralised financial systems to address access problems at the local level.
Decentralised systems also cannot be the solution to all intermediation problems. A multipronged
approach is proposed, harnessing all institutional forms into a comprehensive strategy.