Donors and Investors Overview
Microfinance markets in Latin America and the Caribbean (LAC) attract funding from public and private investors. Out of the $4.7 billion committed to microfinance in the region, 46% are provided by private funders, which is a higher percentage than in any other region. Commitments have continuously increased in the last years. From 2008 to 2009 cross-border funders increased their commitments to LAC by 21%, compared to 17% globally. Private funding increased by 28% in 2009, while public funding increased by only 15%.
According to the 2010 cross-border funding survey, at least 32 public funders (15 bilateral and multilateral agencies and 17 development finance institutions), 13 foundations/NGOs and 67 Microfinance Investment Intermediaries (MIIs) are active in LAC.
The largest funders in the region are KfW, AECID, World Bank, IFC and MIF/IDB. Taken together, they provide 34% of commitments to the region.
Funders are active in 26 countries in LAC. In 2008 and in 2009, Peru and Mexico represent more than a third of the funding committed to LAC. The top 5 countries (Peru, Mexico, Ecuador, Bolivia, Colombia) receive more than 60% of total funding to LAC. Other countries such as Haiti, Guatemala, Brazil, or Argentina receive less than $50 million each.
Top Five Funders in LAC
| |
Percentage of Total Funding Committed |
| KfW |
10% |
| AECID |
9% |
| World Bank |
6% |
| IFC |
5% |
| MIF IADB |
4% |
| All 5 |
34% |
Source: 2010 Cross-border Funding Survey
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