UNDP Microfinance Assessment Report: Madagascar

The paper states that the large number of micro-entrepreneurs representing more than one quarter of the population of Madagascar are faced with no access to financial services outside of the usurious services of money-lenders. It posits that the Bankin'ny Tantsaha Mpamokatra (BTM), a government owned bank with the largest network of branches, is in the process of being privatized and has stopped its very limited services to micro entrepreneurs. The past few years have seen the development of a number of microfinance institutions that have in a limited amount of time designed extensive services for micro entrepreneurs.

The continued expansion of the microfinance sector in Madagascar is constrained by two key factors:

• The lack of capitalization of some programs;
• The need for state-of-the-art technical expertise.

Looks at the issue of sustainability and concludes that:

• Microentrepreneurs in Madagascar require nationwide sustainable sources of delivery for microfinance services;
• The present development of microfinance programs has built the founding stone for the delivery of such a service.