Financing Microfinance Institutions: Context for Transitions to Private Capital

Topic :

This resource is a narrated, online presentation that explores the reason for the existence of a gap between microfinance institutions’ demand for finance and the current supply of private sector funds, which are controlled by investors who remain cool to invest in MFIs despite the microfinance industry’s demonstrated profit potential.

It explores specific challenges for the industry to mobilize commercial capital, including savings, debt and equity (both foreign and domestic), as well as the impact that continued donor subsidies have on microfinance commercialization.

It concludes with suggestions to donors and other stakeholders on how to move the industry toward this vision as the best way to significantly expand outreach to the poor.

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