Publications

Africa, with some of the most vulnerable populations in the world, represents potential and possibilities for the microfinance community. In 2006, the African microfinance industry created and grew formal and semiformal financial institutions across the region, the MFIs varying in scale, institutional design and target markets. The sector remained distinct, in that savings continued to form a fundamental part of financial services, much more so than in any other global region. 2006 also saw clients offered an increasing number of financial services, although at a high cost. African MFIs continued to face tremendous operating hurdles in sustainably serving their clientele.

This year’s sample of 119 African institutions from 24 countries presents the richest data set as yet prepared by MIX, building on previous reports and data on Africa, and providing in-depth trend information on 66 institutions across the region. The 2006 analysis of African MFI performance includes 53 new entrants into the data set. Interestingly, these new entrants lowered the median outreach of African MFIs from 17,000 borrowers in 2005 to just under 10,000 borrowers in 2006, a testament to the spread of financial transparency to smaller institutions across the region. Indeed, half of the MFIs reporting in 2006 had less than 2 million USD in loans outstanding. By examining regional performance along scale and sustainability and by exploring trends across the sector, Benchmarking African Microfinance 2006 brings to light the particularities of microfinance in the region.