ResponsAbility released Microfinance Market Outlook 2016

8 December, 2015

In an environment characterised by weak growth and historically low interest rates in developed economies, microfinance offers an attractive investment opportunity covering a broadly diversified portfolio of growth markets.

The global microfinance sector is expected to grow by another 10-15% in 2016, although growth rates will differ markedly between regions, according to the newly released responsAbility Microfinance Market Outlook 2016. The publication’s sixth edition presents an in-depth and concise overview of expected developments in the microfinance industry over the next year.

Key findings:

  • Economic growth in the 15 main microfinance markets will increase from 3.5% to 4.0% in 2016 and will thus be twice as high as in the developed economies.
  • The global microfinance market is expected to grow by 10-15% in 2016. Led by India and Cambodia, which benefit from a more favourable regulatory environment and strong demand for microfinance services, Asia’s microfinance markets are experiencing the strongest growth momentum. 
  • Technological progress is a key enabler for the development of microfinance markets. More than 70% of the respondents to responsAbility’s expert survey stress the important role of technology in the industry’s efforts to push penetration of financial services and offer microfinance services at lower costs.
  • Although local funding sources are gaining importance for microfinance institutions, international investors remain relevant as they offer greater diversification and a sustainable funding basis for the dynamically growing industry.

To read the complete Microfinance Market Outlook 2016, click here.

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