Two US-based nonprofits, the CGAP (Consultative Group to Assist the Poor) and Microfinance Information Exchange (MIX), recently released the “2011 Regional Snapshot of Microfinance Analysis and Key Trends in Africa’. The market characteristics identified include a strong depositor base with a quarter of globally recorded deposits despite having five percent of total borrowers, low expense ratios of approximately two percent and a concentration of a few large microfinance institutions detaining approximately 80 to 90 percent of borrowers and depositors.
Four aspirations were identified as areas of focus for 2012 in partnership with Making Finance Work for Africa, an initiative launched during the 2007 annual meeting of the World Bank and International Monetary Fund (IMF) in an effort to establish a common platform for the harmonization and facilitation of the financial sector development in Africa. A sharp client focus is suggested as well as a common vision and definition of what financial inclusion means for governments, institutions and policymakers. Laws and regulations can promote a more mature financial sector in Africa as well as a focus on economies of scale, regionalization and consolidation to strengthen market infrastructure.
By Amira Berrada, Research Associate
About CGAP (Consultative Group to Assist the Poor): CGAP (Consultative Group to Assist the Poor) is a US-based nonprofit policy and research center dedicated to providing financial access to poor people worldwide. CGAP is supported by approximately 30 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 taking in USD 20.9 million in total revenue for fiscal year 2010.
About Making Finance Work for Africa: The Partnership for Making Finance Work for Africa (MFW4A) was established in October of 2007 at the Annual Meetings of the World Bank and International Monetary Fund (IMF). MFW4A aims to facilitate financial sector development among African governments, the private sector and development organizations by improving access to information, promoting development projects and raising awareness. The current budget as of December 31, 2010, is EUR 1.4 million (USD 1.85 million).
Sources and Resources:
[1] http://microfinance.cgap.org/2012/03/07/aspirations-for-financial-inclus…
MicroCapital.org article, March 12, 2012, “MICROFINANCE PUBLICATION ROUND-UP: Sub-Saharan Africa Regional Snapshot, Eliminating Entry Barriers in Brazil, and Savings Commitments in Malawi” https://www.microcapital.org/microfinance-publication-round-up-sub-sahara…
MicroCapital.org article, March 13, 2012, “MICROCAPITAL BRIEF: Central Bankers of Kenya, Tanzania Promote Africa Mobile Financial Services Policy Initiative” https://www.microcapital.org/microcapital-brief-central-bankers-of-kenya-…
MicroCapital Universe Profile for Making Finance Work for Africa: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mak…
MicroCapital Universe Profile for Consultative Group to Assist the Poor (CGAP):
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGA…
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROFINANCE PAPER WRAP-UP: “Climate Risk and Financial Inclusion: A Regulatory Perspective on Risks and Opportunities;” by Peter Knaack, Peter Zetterli
- MICROCAPITAL BRIEF: G20, SME Finance Forum Showcase Digital Finance Solutions for MSMEs Via Online Database, Seek Submissions
- MICROCAPITAL BRIEF: AfDB, IFAD Launch M1-200 to Support Agricultural SMEs in Africa
- MICROCAPITAL BRIEF: Credit Bank, FSD Kenya Engaging SACCOs in Effort to Reduce Remittance Costs for Rural Kenyans
- SPECIAL REPORT: Saluting MFI Staff, Promoting Flexible Products, “Keeping the Client at the Heart” as European Microfinance Week Closes
