The impact of the COVID-19 crisis on microfinance institutions – Analyses and perspectives
As early as February 2020, the Grameen Crédit Agricole Foundation began to investigate the unprecedented effects of this global crisis on microfinance institutions (MFIs). An initial survey was launched by the Foundation in March among 75 institutions to understand how they were preparing and adapting to the impact of the pandemic.
In May 2020, ADA and Inpulse partnered with the Foundation to expand the scope of the study to more than 100 MFIs in four continents: Africa, South America, Asia and Europe. As part of the monitoring of their partners’ activities, GCA receives regular information on their financial and non-financial performance. These normative elements have been complemented by 6 waves of surveys conducted since the inaugural questionnaire in March 2020. As information sharing is essential in these uncertain times, the results have been shared with a wide range of stakeholders in the sector: international development agencies, peers, specialised information platforms, the public.
These results illustrated the pronounced resilience of the sector and the adaptability of microfinance institutions, which played a crucial role in cushioning the effects of the crisis on their clients and continuing to finance local economies.