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Foreign Capital Investment in Microfinance: Balancing Social and Financial Returns

According to a new CGAP Focus Note microfinance is experiencing an unprecedented investment boom. The past five years have seen remarkable increases in the volume of global microfinance investments. Between 2004 and 2006, foreign investment in microfinance institutions more than tripled to reach a total of US$4billion, says Foreign Capital Investment in Microfinance: Balancing Social and Financial Returns, written by Xavier Reille and Sarah Forster.

This Focus Note:

  • describes the new landscape of cross-border investments and presents an overview of who is investing and why.
  • presents the first ever published data on the performance of microfinance investment vehicles (MIVs).
  • provides an analysis of the latest developments and issues confronting both the microfinance debt and equity markets.
  • explores how the influx of private-sector investment might influence the social focus of microfinance development.
  • Resource type
  • Author Reille, X.; Forster, S.
  • Organisation
  • Year of Publication2008
  • Region
  • LanguageEnglish
  • Number of pages24 pp.

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