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Data Download: Microfinance Funding Continues to GrowNovember 15, 2009
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24% ** The amount funding for microfinance increased in 2008
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In spite, or in some cases because of the financial crisis, support for microfinance increased by 24 percent in 2008. According to CGAP’s second annual funder survey, 61 donors and investors committed US$14.8 billion to microfinance as of December 2008 – US$3 billion of which was disbursed during the year. Regional concentration of funding remains high, with half of the total funding committed going to Eastern and Central Europe and South Asia.
Of the funders surveyed, 38 were donors and 23 were investors, who numbered roughly equal commitments to microfinance in 2008 – underscoring the growing importance of funding from investors, including development finance institutions, and individual and institutional investors. The growth in cross-border microfinance funding continues to be driven by a small group of funders that together represent almost 50 percent of total commitments: KfW, the Asian Development Bank, the World Bank, the European Bank for Reconstruction and Development, and the International Finance Corporation.
The survey sheds light on the purpose of funding and shows what financial instruments funders use to support microfinance. The largest share of funding is used for refinancing and building capacity of retail financial service providers, the backbone of the financial system.
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