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2008 Transversal Analysis of MFI Performance in Africa: Second Edition
External performance evaluation and rating of MFIs
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34 pages
This study was commissioned by the African Microfinance Transparency (AMT). It is based on data from rating reports produced for AMT members as well as rating reports of several non-member African MFIs.
The study draws conclusions on characteristics of African MFIs and microfinance sector in the region. Findings indicate that:
- MFI s have managed to maintain their portfolio quality despite the emerging trend of individual lending;
- Net profit margin of sample MFIs is negative, but it has improved over the last three years and is almost at the threshold of profitability;
- Despite overall decrease in operational expenses, cost per borrower has increased due to the development of sophisticated products and increase in average loan size;
- MFIs need to leverage capital continues to increase in order to fund loan portfolio growth;
- MFIs demonstrate a greater tendency to seek external funding rather than to collect savings, even though savings mobilization is improving and remains important.
The analysis shows that African MFI s are becoming more mature and professional, and have a better grasp of their loan portfolios and operational costs.
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