Microfinance Market Outlook 2011: Back on the Growth Path

This paper presents the outlook for global microfinance markets for the year 2011. It is based on market data, and a survey of industry experts from major microfinance markets. It predicts that 2011 will be a year of moderate but persistent growth for microfinance markets around the world. Key findings include:

• Microfinance is increasingly correlated to local economies;
• Portfolio quality of MFIs has improved and points to gradual normalization;
• Efforts to improve corporate governance, professionalize risk management and diversify product range have resulted in sustainable growth;
• Projected annual growth of 6.5 percent for emerging markets will have positive impact on microfinance;
• Leading investment managers will benefit as MFIs seek fewer and more reliable refinancing sources.

The paper states that institutional capacity building will be the major challenge for microfinance in 2011. It concludes with a future strategic outlook for responsAbility.