Paper

Prospects for Investment in South Asian Microfinance

Paper presented at Second Annual Convergences 2015 Forum on microfinance, April 30, 2009, Paris, France.
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This report provides an overview of investment conditions, regulations and procedures in South Asian countries to potential investors in microfinance.The report discusses the microfinance investment landscape of four countries, namely Afghanistan, India, Pakistan and Sri Lanka. Findings include:
  • Huge unmet demand, institutional development of MFIs, support from Microfinance Investment Support Facility for Afghanistan provide sound base for growth of microfinance sector in Afghanistan;
  • Pace of the sector is set by innovations in products, processes, funding structure and linkages with financial institutions in India;
  • Pakistans microfinance sector has seen impressive growth and there is huge scope for expanding outreach and growth of MFIs;
  • Sri Lanka has a large and diverse microfinance sector in terms of outreach and institutional types.
The outreach of microfinance in South Asia remains very low. In order to continue and accelerate the expansion of financial services for the poor, new sources of funding must be developed for growing MFIs in the region.

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By ACTED
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