2009 Africa Microfinance Analysis & Benchmarking Report
Over the last decade, the microfinance sector in Sub-Saharan Africa (SSA) has capitalized on positive developments that have led to increased outreach and improved performance of microfinance institutions (MFIs). MFIs wrapped up 2007 with impressive growth in outreach, reaching operational self-sufficiency for the first time. With the beginning of a new year came many challenges. The food and fuel price hikes that occurred early in 2008 were followed by a severe financial and global economic contraction. This triple shock had severe repercussions on economies throughout SSA. According to the International Monetary Fund, gross domestic product growth slowed from 7 percent in 2007 to 5.5 percent in 2008, while inflation rose from 6.8 percent to 11.9 percent in the same time period. The impact of the crises on the real economy, and in particular on MFI clients’ livelihoods, was expected to surface in the performance of microfinance in the region, shaking the hard-won gains of microfinance in SSA.
The 2009 Africa Microfinance Analysis & Benchmarking Report, produced by MIX in partnership with CGAP, analyzes in detail the state of microfinance in 2008 throughout SSA focusing on key growth trends, major legal and regulatory changes, funding for microfinance, and performance of MFIs. This report includes benchmarks based on data from 195 MFIs in Sub-Saharan Africa.