Download or read book Financial Sustainability of Micro Finance Institutions in Sub Saharan Africa written by Hanna Kattilakoski and published by GRIN Verlag. This book was released on 2020-06-23 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presentation slides from the year 2018 in the subject Business economics - Business Management, Corporate Governance, grade: 90, Cologne Business School Köln, language: English, abstract: What factors influence the financial sustainability of microfinance institutions in Sub-Saharan Africa?
Download or read book The Financial Sustainability of Micro Finance Institutions in Sub Saharan Africa written by Hanna Kattilakoski and published by GRIN Verlag. This book was released on 2020-08-05 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2018 in the subject Business economics - Investment and Finance, grade: 90.0, Cologne Business School Köln, language: English, abstract: The aim of this study is to understand the factors that drive financial sustainability in microfinance institutions. To accomplish this, several indicators for operational self-sufficiency (OSS) were investigated through correlation and regression analysis. The results indicate that the drivers for operational self-sufficiency include return on assets, number of active borrowers and profit margin. The analysis also showed that in terms of OSS and profitability, there is little difference between for-profit and non-profit organizations. To increase operational self-sufficiency institutions should increase return on asserts, the number of active borrowers and their profit margin. The results support the profit-incentive theory and the financial systems approach. These results indicate that to achieve financial sustainability MFIs should focus on covering operating expenses through earned revenues. Therefore, MFI structure should encourage cost-oriented management. Additionally, findings from this study revealed that there may not be a large tradeoff in efficiency and outreach. Results showed that operationally self-sufficient MFIs actually have a larger outreach than non-self-sufficient organizations. Limitations for this study include that the regression only explains the variables affecting OSS with 26 % certainty and other variables not tested may also be factors
Download or read book Microfinance in Africa written by Mr.Rodolphe Blavy and published by International Monetary Fund. This book was released on 2004-09-01 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 and 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, supported by regulation and supervision by local authorities.
Download or read book Financial Sustainability Liquidity and Outreach of Deposit taking Microfinance Institutions written by Zibusiso Moyo and published by . This book was released on 2020 with total page 219 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Microfinance in Africa written by S. Rajagopalan and published by . This book was released on 2009 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: Africa is home to some of the poorest and vulnerable populations in the world. The ten poorest countries in the world are in Africa. Sub-Saharan Africa is the region with the highest incidence and greatest depth of poverty in the world. Fewer than one in five adults in Africa has access to the services of a formal or semi-formal financial institution. Microfinance in Africa is growing, though. A broad range of diverse institutions offer financial services to the poor and low-income clients in Africa. These include non-governmental organizations, non-banking financial institutions, cooperatives, credit unions, rural banks, Rotating Savings and Credit Associations (ROSCAs), postal financial institutions and an increasing number of commercial banks. Increasingly, technology is being used to expand microfinance outreach mobile phone banking is one such example. This book provides an overview of the microfinance sector in Africa, reviews the performance and impact of microfinance institutions in the region, and outlines some of the opportunities and challenges that African microfinance has on hand.
Download or read book Microfinance and Sustainable Development in Africa written by Alhassan, Yahaya and published by IGI Global. This book was released on 2021-12-10 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt: The use of microfinance for poverty reduction and economic development in the developing world is growing. However, this concept needs to be expanded to ensure its successful application for achieving longer-term economic growth and sustainability in developing countries, particularly in parts of the world such as Africa. As such, further research into the relationship between microfinance and sustainable development in developing regions is required to fully understand the opportunities for effective use of microfinance for poverty reduction and economic development. Microfinance and Sustainable Development in Africa examines the complex relationship between receipt of microfinance, poverty reduction, economic growth, and microbusiness development, focusing on the provision of small credit facilities as a driver of sustainable development in Africa. Its coverage of topics such as microbusiness, social finance, and sustainable development make this book an ideal reference source for academicians, researchers, government officials, policymakers, organizations, managers, instructors, and students.
Download or read book Financial Development in Sub Saharan Africa written by Mr.Montfort Mlachila and published by International Monetary Fund. This book was released on 2016-09-14 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses how sub-Saharan Africa’s financial sector developed in the past few decades, compared with other regions. Sub-Saharan African countries have made substantial progress in financial development over the past decade, but there is still considerable scope for further development, especially compared with other regions. Indeed, until a decade or so ago, the level of financial development in a large number of sub-Saharan African countries had actually regressed relative to the early 1980s. With the exception of the region’s middle-income countries, both financial market depth and institutional development are lower than in other developing regions. The region has led the world in innovative financial services based on mobile telephony, but there remains scope to increase financial inclusion further. The development of mobile telephone-based systems has helped to incorporate a large share of the population into the financial system, especially in East Africa. Pan-African banks have been a driver for homegrown financial development, but they also bring a number of challenges.
Download or read book FinTech in Sub Saharan African Countries written by Mr.Amadou N Sy and published by International Monetary Fund. This book was released on 2019-02-14 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: FinTech is a major force shaping the structure of the financial industry in sub-Saharan Africa. New technologies are being developed and implemented in sub-Saharan Africa with the potential to change the competitive landscape in the financial industry. While it raises concerns on the emergence of vulnerabilities, FinTech challenges traditional structures and creates efficiency gains by opening up the financial services value chain. Today, FinTech is emerging as a technological enabler in the region, improving financial inclusion and serving as a catalyst for the emergence of innovations in other sectors, such as agriculture and infrastructure.
Download or read book Microfinance Institutions written by R. Mersland and published by Springer. This book was released on 2015-12-11 with total page 329 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research on MFI performance is still in its infancy. MFIs are hybrid organizations with dual objectives. Performance studies in microfinance are therefore less straightforward compared to performance studies in traditional banking research. This book contains new MFI performance research by top scholars from across the globe.
Download or read book Assessing the Sustainability efficiency of Sub saharan Africa s Microfinance Institutions as it Relates to Solving Poverty Stimulating Economic Growth written by Ariel Prochowski and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation reviews a plethora of microfinance institutions (MFIs) in countries all over Sub-Saharan Africa to investigate their sustainability. I find my paper to be particularly relevant and crucial as MFIs need to function proficiently to satisfy their dual mandate of aiding the underprivileged and being sustainable. My belief is that MFIs are not reaching their goals of delivering microfinance services (e.g. mediating monies between lenders and borrowers) that leave their clients better off in the long-run.
Download or read book Financing Sustainable Development in Africa written by Uchenna R. Efobi and published by Springer. This book was released on 2018-05-15 with total page 456 pages. Available in PDF, EPUB and Kindle. Book excerpt: This edited volume provides a critical evaluation of financing options for sustainable development in Africa. While sustainability has long been the watchword for development programs, and while many African countries have taken initiatives to develop integrated frameworks that tackle developmental challenges—including poverty, education, and health—financing has remained a challenge. In this book, an expert team of chapter authors examines new financing options while also exploring how traditional financing means, such as foreign aid and foreign direct investment, can be more effective for sustainability. The authors discuss how African nations can build adequate structures and productive capacity to create a platform that can meet present economic, social, and environmental needs without compromising the ability of future generations to meet their own needs. Practical case studies and scientific evidence give this book a unique approach that is both qualitative and quantitative. This book will be of interest to students, practitioners, and scholars of development studies, public policy and African economics.
Download or read book The Effect of Subsidies on the Performance and Sustainability of Microfinance Institutions in Sub Saharan Africa written by Menzie S. Dlamini and published by . This book was released on 2012 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Finance in Africa written by European Investment Bank and published by European Investment Bank. This book was released on 2021-11-23 with total page 281 pages. Available in PDF, EPUB and Kindle. Book excerpt: Africa's recovery from the COVID-19 crisis will depend on private firms sustaining and creating jobs. But even previously thriving enterprises have been badly hit by the crisis. This report outlines the consequences of the health crisis in Africa, the potential cost of the recovery and the willingness of banks to support green investments as they look to the future.
Download or read book Financial Inclusion for Poverty Alleviation written by Essam Yassin Mohammed and published by Routledge. This book was released on 2017-12-12 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: More than one billion people still live below the poverty line – most of them in South Asia and Sub-Saharan Africa. Financial inclusion is a major issue, as more than three-quarters of the numbers of poor and disadvantaged women and men do not have access to financial products and services, such as bank accounts, affordable and suitable loans, and insurance. The key objective of this book is to provide practical case studies of financial inclusion, rather than focus on academic debates such as the ideological basis of promoting microfinance. Using the recently adopted Sustainable Development Goals as an overall framing of the issues, it shows how poor and disadvantaged women and men can be bankable if the right facilitation for maximizing opportunities and addressing constraints are in place. Case studies confirm that achieving inclusive and sustainable access to financial products and services goes beyond simply enabling poor and disadvantaged women and men to have access to credit, or the ability to open a bank account. Examples from Africa, Asia and Latin America demonstrate encouraging progress in making microcredit accessible to millions of poor people. The foremost challenge, however, has been to ensure that they have access to, and usage intensity of, suitable and affordable financial products and services that meet the needs of their livelihoods as well as risks and mitigation strategies. This requires understanding that poor and disadvantaged women and men do not exist in isolation from complex and interdependent functions in the financial system, which includes a number of actors, diversified services, constraints (not just symptoms) and capacities and incentives. Overall, the book provides a rich source of examples of how building inclusive financial systems can empower the world's poor – by increasing income and employment opportunities, securing livelihoods and reducing poverty.
Download or read book The Triangle of Microfinance written by Manfred Zeller and published by Intl Food Policy Res Inst. This book was released on 2002-01-01 with total page 426 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the 1980s when the microfinance revolution began, much has been accomplished, but the field became more refined in the 1990s as a result of shifts in paradigms, strategies, and development practices. This volume addresses the three policy objectives that now occupy those who wish to use credit as a development tool: financial sustainability of microfinance institutions, outreach to the poor, and welfare impact. Inevitable tradeoffs exist among these objectives, and the book advances an analytical framework that assists students of and experts in microfinance to identify the tradeoffs and synergies at the institutional level and in the policy environment. The book features a wealth of empirical data and innovative analytical studies, and critically discusses the role of public support for microfinance institutions (MFIs) in light of the social costs and benefits generated by such financial systems. The book is organized into five parts. The first discusses the demand for and access to financial services by the poor, emphasizing that demand-oriented, pro-poor financial services are crucial in reaching the poor. The second is concerned with two of the criteria used to evaluate MFIsoutreach and financial sustainability. The third features innovative econometric studies seeking to evaluate the impact of MFIs at the household level. The fourth looks at the role of both public- and private-sector institutions in developing sustainable financial systems. And the fifth summarizes implications for policy and research. Given the lack of sound, empirical literature on microfinance, this volume is sure to advance knowledge and research methodology in the field.
Download or read book An Evaluation of the Performance of Microfinance Institutions in Ghana written by Felix Kwame Aveh and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The thesis examines factors that influence sustainability and success of microfinance institutions in Ghana. The topic is important, particularly in poverty stricken Africa, where microfinance institutions play a significant role in supporting governments' initiatives to reduce/alleviate poverty. The developed model is tested using data collected from 14 face-to-face interviews and 114 questionnaires. The data is analysed using different techniques - descriptive statistics, cross-tabulations and regression analysis. The research design and scale of the study are appropriate to both the problem addressed and doctoral level research. A number of factors in the model developed were found to be influencing the sustainability and success of microfinance institutions. A model was proposed that seeks to offer an explanation of sustainability and success of Microfinance Institutions in Ghana. The proposed model identified five categories being: institutional characteristics, agency costs, business strategy, environment/governance and success. Single factor analysis established positive relationships between sustainability and all the five factors but placed more emphasis on three out of the five factors namely; success, business strategy and environment/governance. Multiple factor analysis established no significant differences in the sustainability with respect to the type of MFI, ownership and source of funding. Multiple Regression which allows for the testing of theories or models established a significant relationship between the Operational Self Sufficiency (OSS) and the predictors, especially the drop-out rate of clients and average loans. The Subsidy Dependence Index (SDI) was calculated for the various types of MFIs and the result was a high dependency ratio especially among the FNGOs. Though the dependency is on the decline, it is very slow indicating that most MFIs will depend on subsidies for a very long time to come. Finally it was observed that the relatively high interest rates charged by most of the MFIs tended to defeat the purpose for which the microfinance movement came about. Not only did the study confirm the research model, but it also revealed that most owners did not exhibit a deep sense of involvement and used general knowledge to practice in Ghana. The study concluded that success factors, business strategy, and environment/governance were the most critical of the sustainability factors in Ghana. It is therefore important that managers develop institutional capacities especially in managing the agency problem effectively if they have to be sustainable and successful.
Download or read book Financial Performance and Outreach written by Robert J. Cull and published by World Bank Publications. This book was released on 2006 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance contracts have proven able to secure high rates of loan repayment in the face of limited liability and information asymmetries, but high repayment rates have not translated easily into profits for most microbanks. Profitability, though, is at the heart of the promise that microfinance can deliver poverty reduction while not relying on ongoing subsidy. The authors examine why this promise remains unmet for most institutions. Using a data set with unusually high quality financial information on 124 institutions in 49 countries, they explore the patterns of profitability, loan repayment, and cost reduction. The authors find that institutional design and orientation matter substantially. Lenders that do not use group-based methods to overcome incentive problems experience weaker portfolio quality and lower profit rates when interest rates are raised substantially. For these individual-based lenders, one key to achieving profitability is investing more heavily in staff costs-a finding consistent with the economics of information but contrary to the conventional wisdom that profitability is largely a function of minimizing cost.
