Cambodia Microfinance Performance Trends 2003-2007

This report highlights changes and growth in the Cambodian microfinance market using standardized adjusted indicators. The microfinance sector reached over 750,000 borrowers and 300,000 savers with a total loan portfolio of nearly USD 400 million by September 2007. The report states that:

• Growth in outreach has been a consistent 20 percent per year;
• MFIs reach a broad market segment;
• MFIs mix individual and solidarity-group lending methodologies;
• Most MFIs focus on outreach to women;
• Outstanding loan balances of MFIs have more than doubled since 2003;
• Portfolio growth has been rapid, and loan sizes have increased at most institutions;
• Income levels have not risen as fast as loan balances, indicating that MFIs have begun to target higher income market segments;
• Increasing loan balances has been one of the main drivers for increasing efficiency in the sector;
• MFIs financial expenses increased;
• Approximately two-thirds of all funding comes from foreign microfinance investment funds;
• Debt from NGOs and leading local providers is the least expensive source of funding.

The report also compares the Cambodian microfinance sector with that of other countries at a similar stage of development.