2009 Microfinance in Africa

2009 Microfinance in Africa. Over three billion people in developing countries are still without effective access to loan and deposit services. The problem is particularly acute in Sub-Saharan Africa, where only between five and 25 percent of households have a formal relationship with a financial institution. The region is also home to just two percent of the world’s microfinance institutions.

Lack of access to financial services is therefore one of the largest constraints to private sector development in Africa. Addressing this shortfall requires creating new institutions and building operational and managerial capacity from the ground up.

IFC’s Microfinance Program for Africa aims to increase the number of commercially viable microfinance institutions and broaden access to financial services so that the region’s smallest businesses can access the financial services they need to thrive.

Working with development partners, IFC aims to establish 15 new microfinance institutions by 2011, reaching approximately 400,000 new borrowers. The program focuses on countries affected by conflict and where the private sector is at the very early stages of development.

For more information about our work see Microfinance or contact us.