Microfinance in Africa: Experience and Lessons From Selected African Countries
IMF Working Papers, September 1, 2004
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Bibliographic details
- Authors: Rodolphe Blavy, Anupam Basu, Murat  Yulek
- Published: September 1, 2004
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451858723.001
Summary
- Based on the experience of selected countries, this paper offers a critical presentation of the development of the microfinance sector in Africa.
- The paper supports the view that microfinance institutions, especially those engaged in full financial intermediation, complement effectively the banking sector in extending financial services.
- Microfinance institutions successfully draw on the rich experience of community-based development and preexisting informal methods of financial intermediation in Africa.
- Growing linkages between microfinance institutions and the banking system and the dissemination of good practices by nongovernment organizations contribute to the sound development of the sector.
- Regulation and supervision by local authorities support the development of the sector.
Key findings and observations
- Microfinance institutions engaged in full financial intermediation complement the banking sector in extending financial services.
- Microfinance institutions leverage community-based development and informal financial intermediation methods prevalent in Africa.
- Linkages between microfinance institutions and the banking system are increasing.
- Dissemination of good practices by nongovernment organizations aids sector development.
- Local regulation and supervision underpin the sound development of the microfinance sector.
Subjects and keywords
- Subjects: Banking, Commercial banks, Credit, Financial institutions, Financial services, Loans, Microfinance, Money, Nonbank financial institutions
- Keywords: a number of mfis, Africa, bank regulation, Commercial banks, Credit, donor-managed microfinance project, Loans, MFI operation, mfis to client, microcredit, Microfinance, microfinance activity, microfinance bank, microfinance law, microfinance sector, microfinance service, Nonbank financial institutions, savings, service poor, Sub-Saharan Africa, variety of microfinance institutions, WP