Microfinance Market Outlook 2015

  • Date Posted: December 4, 2014
  • Authors: Christian Etzensperger
  • Organizations/Projects: responsAbility
  • Document Types: Evaluation
  • Donor Type: Non-US Government Agency

This report provides an in-depth outlook of microfinance markets for the next 5 years and reviews the development of these markets in the past 5 years. It evaluates the development of microfinance in the future on the basis of interviews conducted with 32 experts from major microfinance markets including decision-makers at microfinance institutions (MFI) and rating agencies, investors, and advisors. The report also provides an analysis of microfinance markets using a model-based simulation to assess potential levels of demand for the period to 2019. In addition, it discusses the investment universe and offers an economic outlook for target markets in 2015. Key highlights from the report include:

  • Global microfinance markets should once again achieve growth of 15-20 percent in 2015;
  • Microfinance countries are likely to grow at twice the rate of developed economies;
  • The institutional environment for MFIs is improving, both in terms of regulatory supervision by the authorities and market infrastructure;
  • There is a need for stricter risk management on the part of MFIs as well as the asset managers investing in them; and
  • Local sources of financing are becoming increasingly important and although international investors continue to play a major role, MFIs are seeking to focus on a smaller number of stronger financing partners.