Global Microfinance Recovery Continues, Especially in Africa, but Pandemic’s Long-term Impact Remains Uncertain

To help fill the void of publicly available data on how COVID-19 is impacting the microfinance sector, CGAP and Symbiotics – a leading microfinance investment vehicle – have partnered to analyze data on the performance of the more than 300 microfinance institutions (MFIs) in Symbiotics global portfolio. This snapshot is the fourth in the series, Snapshots: MFIs During the COVID-19 Crisis.

Microfinance institutions (MFIs) are starting to recover, particularly in Africa, and some have managed the crisis better than expected so far. However, the recovery remains fragile. There is pressure on asset quality, and questions remain about how restructured portfolios will impact MFIs’ longer-term solvency. Structural issues at the macro and country levels, coupled with the slow rollout of vaccines in many regions, contribute to fragility.