Overview of the Outreach and Financial Performance of Microfinance Institutions in Africa
Microfinance institutions (MFIs) in sub-Saharan Africa include a broad range of diverse and geographically dispersed institutions that offer financial services to low-income clients: non-governmental organizations (NGOs), non-bank financial institutions, cooperatives, rural banks, savings and postal financial institutions, and an increasing number of commercial banks. Overall, the sector in Africa is dynamic and growing.
Microfinance in Africa is a vibrant sector but it has been difficult to study because of a lack of reliable information among researchers. To address this challenge, the Consultative Group to Assist the Poor (CGAP) commissioned the Microfinance Information eXchange (MIX) to survey the financial and outreach performance of MFIs in Africa with the purpose of identifying the current trends of financial service providers for low-income people in the region.
This report addresses two main questions:
- How does the performance of the African microfinance sector compare with that of its global peers?
- How does performance vary among African MFIs?
The African MFIs are examined through the lens of standard industry performance metrics over a series of variables: outreach (breadth and depth), financial structure, financial performance, efficiency and productivity, and portfolio quality.
