Sub-Saharan Africa 2009: Microfinance Analysis and Benchmarking Report

May 5, 2010    

Over the last decade, the microfinance sector in Sub-Saharan Africa (SSA) has benefited from positive developments including strong growth in outreach and improved performance of microfinance institutions (MFIs), according to a new report jointly produced by CGAP and MIX. The 2009 Africa Microfinance Analysis & Benchmarking report analyzes in detail the state of microfinance in 2008 throughout the region, focusing on key growth trends, major legal and regulatory changes, funding for microfinance, and performance of MFIs.

In 2008, this region faced serious challenges, especially food and fuel price hikes, and a severe financial and global economic contraction. As the economic crisis hit, MFIs did not expand their client base, instead concentrating on trusted, known borrowers. However, in spite of the crisis, there has been less volatility in returns and fewer MFIs are incurring significant losses than in 2007. Donors and investors are standing by microfinance in the region with committed amounts increasing by 13% in 2008.

The report concludes that continued vigilance and focus on sound management and governance are in order, especially if some of the aftershocks of the economic crisis are yet to come or over time, expose underlying vulnerabilities.