MicroRate last week released The State of Microfinance Investment 2011. Based on interviews given by executives of major microfinance investment funds and a survey of the 101 active MIVs, this report examines the key factors that have affected the microfinance fund market in 2010 and the trends that are likely to drive growth in 2011 and beyond.
The key findings of the report include:
- The lingering effects of the economic crisis led to the lowest growth rate observed in the past 6 years, with total MIV assets growing 12% in 2010.
- MIVs’ microfinance assets, however, grew 18%, which reduced some of the excess liquidity that was built up in 2009.
- Low-priced, domestic funding in key countries has been crowding out foreign private capital.
- Latin America & the Caribbean is now in second place behind Europe/Central Asia in terms of the geographic investment distribution – receiving 35% and 38% respectively of total MIV investments.
- Top fund executives predict growth rates of 20-30% for the remainder of 2011 and into 2012.
- Both MFIs and MIVs give an increasing importance to social performance.
2011 State of Microfinance Investment Report
According to Sebastian von Stauffenberg, CEO of MicroRate , “ One of the most striking results we’ve seen is the resilience of microfinance institutions in weathering the 2008/2009 economic crisis.”
The 2011 State of Microfinance Investment Report was sponsored by Calmeadow, Citi Microfinance, and the European Investment Bank and can be downloaded at the link below :