At the recently concluded Fifth African Microcredit Conference, which was held in Ethiopia, a focus note reportedly commended the Moroccan microcredit sector, remarking that from 2003 to 2007 microfinance institutions’ (MFIs) loan portfolio “multiplied 11 times and client outreach by four” in the country [1]. The Moroccan microcredit sector reportedly accounts for 40 percent of all microfinance outreach in the Arab world. This growth has been credited largely to four MFIs: Zakoura, Al-Amana, Fondation des Banques Populaires and Fondep. The note observed that these MFIs scored well on microfinance performance metrics such as scale, depth of outreach, asset quality and profitability. The source and text of the focus note are not available as of this writing.
On the contrary, MicroCapital has previously covered papers such as “Morocco MFIs Confront Crisis and Strive for a Brighter 2010,” published by US-based nonprofit CGAP (Consultative Group to Assist the Poor) and the “2009 Arab Microfinance Report,” released by US-based nonprofit Microfinance Information Exchange (MIX), both reporting that the rapid growth of the Moroccan microcredit sector has come at the cost of asset quality, leading to MFIs such as Zakoura experiencing a portfolio-at-risk ratio of over 30 percent [2] [3].
By Nisha Koul, Research Associate
About CGAP (Consultative Group to Assist the Poor): CGAP is a policy and research center dedicated to providing financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors. CGAP reports having taken in USD 20.9 million in total revenue during fiscal year 2010.
About Microfinance Information Exchange (MIX): Established in 2002, Microfinance Information Exchange (MIX) is a nonprofit organization with its headquarters in Washington, DC, and regional offices in Peru, Morocco and India. MIX provides financial and social performance information from microfinance institutions (MFIs), as well as business information from market facilitators, donor organizations and investors in microfinance. As of 2011, MIX Market, the arm of MIX that analyzes MFI information, provides data on approximately 2,000 MFIs as well as information about funders, networks and service providers. MIX was founded by CGAP (Consultative Group to Assist the Poor) and is sponsored by Citi Foundation, Deutsche Bank Americas Foundation, International Fund for Agricultural Development (IFAD), the Bill and Melinda Gates Foundation and the Omidyar Network.
Sources and Additional Resources:
[1] allAfrica.com, Morocco “a recognized microcredit champion” -Focus, http://allafrica.com/stories/201109210105.html
[2] MicroCapital.org story, January 20, 2010, “MICROCAPITAL BRIEF: Moroccan Government Supports Microfinance Industry’s Path to Recovery in 2010,” https://www.microcapital.org/microcapital-brief-moroccan-government-supports-microfinance-industry%e2%80%99s-path-to-recovery-in-2010/
[3] MicroCapital.org story, June 1, 2010, “MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases 2009 Arab Microfinance Report with Focus On Microfinance Sector Crisis in Morocco,” https://www.microcapital.org/microcapital-brief-microfinance-information-exchange-mix-releases-2009-arab-microfinance-report-with-focus-on-microfinance-sector-crisis-in-morocco/”
MicroCapital Universe Profile: CGAP (Consultative Group to Assist the Poor), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29
MicroCapital Universe Profile: Microfinance Information Exchange (MIX), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Information+Exchange+%28MIX%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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