Small Beginnings for Great 0pportunities : Lessons Learned from 20 years of Microfinance Projects in IFC
By increasing access to finance for out-of-reach households and families, microfinance continues to be an essential tool for improving livelihoods at the base of the pyramid. The last 20 years have seen remarkable growth in the microfinance sector....
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| Format: | Book |
| Language: | English en_US |
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World Bank Group, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/01/24171745/small-beginnings-great-opportunities-lessons-learned-20-years-microfinance-projects-ifc http://hdl.handle.net/10986/21795 |
| Summary: | By increasing access to finance for
out-of-reach households and families, microfinance continues
to be an essential tool for improving livelihoods at the
base of the pyramid. The last 20 years have seen remarkable
growth in the microfinance sector. From its early stages in
small-scale microenterprise lending, through its commercial
expansion to offer savings and a broad array of financial
services to low-income customers, to its entry into new
markets and incorporation of technological innovations,
microfinance is ensuring that an ever-greater number of
households have permanent access to a range of high-quality
and affordable financial services. The microfinance industry
is estimated at $60 to $100 billion globally, where several
thousand microfinance organizations reach an estimated 200
million clients, most of whom were not previously served by
the formal financial sector. However, 2.5 billion adults
still lack access to formal financial services. Financial
services for low-income people are an important factor when
it comes to poverty reduction, as it enables them to build
assets, increase incomes and reduce their vulnerability to
economic stress. Moreover, microfinance continues to be an
important tool when it comes to empowering women. IFC is the
World Bank Group s main investor in microfinance, working
with around 300 microfinance institutions (MFIs) and
SME-focused financial institutions, which provide financial
services in 91 countries. IFC is also one of the leading
global investors in terms of volume. In fiscal year 2014, we
committed $519 million in 43 projects with MFIs. Our
cumulative investment portfolio in microfinance exceeded
$3.5 billion, with outstanding commitments of $2.0 billion.
In fiscal year 2014, IFC advisory services comprised $74.2
million, representing advisory assistance for 86 projects.
This smart book, titled from small beginnings to great
opportunities, presents practical lessons learned from the
work that authors have been doing on microfinance projects
over the last twenty years. From launching the Microfinance
Enhancement Facility to help the industry stay afloat during
the time of crisis, to working on a project to support
microfinance clients to fulfill their housing dreams, these
narratives are both engaging and insightful. |
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