2007 Cambodia Trend Report 2003 - 2007 - English
This report provides an opportunity to view the development of the sector in Cambodia over a period of four years, using standardized, adjusted indicators. This report was developed to shed light on the nature of change and growth in the Cambodian microfinance market, as well as in individual institutions in the country. The report highlights potential strengths and weaknesses of the sector, for the ongoing use of MFI managers and practitioners. Towards this end, the report presents three sets of indicators for Cambodia:
Indicators calculated based on aggregate values for nine of the leading MFIs in Cambodia, representing over 95% of total outreach.
Indicators calculated based on aggregate values for the same group of leading MFIs, but with ACLEDA Bank excluded, to allow for a clearer picture of the leading non-bank providers to emerge.
The final sets of tables present median indicators for the full group of nine institutions.
The microfinance sector in Cambodia reached over 750,000 borrowers and 300,000 savers by September 2007, although the vast majority of savings accounts were held at the only microfinance provider with a bank charter – ACLEDA Bank. The total loan portfolio reached almost 400 million USD by September 2007. At year-end 2006, the loan portfolio of 250 million USD was supported by roughly 125 million in savings, 100 million in external debt and 80 million in equity (of which some 20 million is subordinated debt from parent NGOs). Growth in outreach from 2003 – 2007 has been consistently around 20 percent per year. By September 2007, three institutions (AMRET, AMK and ACLEDA) had reached the 100,000 borrower mark, with AMRET overtaking ACLEDA as the largest institution for the first time. Microfinance institutions in Cambodia typically reach a broad market segment, with average loan balances at most MFIs falling below GNI per capita levels. The majority of MFIs mix individual and solidarity-group lending methodologies. ACLEDA Bank offers slightly higher balance loans. Outreach to women has been a focus of most MFIs, with the median percentage of women borrowers in excess of 80 percent for 2006.
Outstanding loan balances at Cambodian MFIs have more than doubled since 2003. Portfolio growth has been more rapid than growth in borrowers, as seen in Figure 1, and therefore loan sizes have steadily increased at most institutions. Income levels have not risen as fast as loan balances, indicating that many MFIs have begun to target higher income market segments, although these changes may have arisen through expanded product offerings as much as through a shift of the customer base.
The microfinance sector in Cambodia appears to be splitting into two groups – those maintaining a focus on small-balance loans and outreach, and others working with a mixed product offering of micro- and SME-loans. Figure 2 demonstrates the increasing differences between these two groups of institutions. However, those institutions that have not increased loan balances have been able to quickly reach more borrowers, as shown in Figure 3. In an environment with funding constraints, MFIs have often had to choose between higher loan balances or increased outreach.
