2014 Saw $31 Billion in International Funding for Financial Inclusion

20 January, 2016

Source: CGAP

Despite challenges like climate change, mass migration and fragile states, funders wordlwide committed $31 billion towards financial inclusion projects in 2014, according to CGAP (Consultative Group to Assist the Poor) en MIX (Microfinance Information Exchange). Figures about Dutch investors specifically soon available on this website!

The international funding climate 

The 2,235 global projects reported in the survey supported the growth of financial service providers, built capacity at financial institutions, expanded market infrastructure, addressed policy issues, and improved the financial capabilities of low-income people.

Conducted annually since 2008, The CGAP Funders Survey, in partnership with The MIX (Microfinance Information Exchange), is the most comprehensive source of analysis on international funding for microfinance and financial inclusion. The survey tracks the quantity, purpose, and destination of international commitments to financial inclusion annually and explains how funders are working to bring more of the world’s 2 billion ‘unbanked’ into the formal financial system.

Survey Findings

  • 72% of financial inclusion funding came from public sources (development agencies, bilateral institutions and multilateral institutions), while 28% came from private sources (foundations, institutional investors and other donors);
  • Eastern Europe and Central Asia ($6.28 billion) and South Asia ($2.98 billion) received the most funding;
  • The Middle East and North Africa was the only region to see an increase in international funding in 2014. Funding increased by 12% in this region;
  • The largest number of projects (553) were executed in Sub-Saharan Africa. Digital finance is a central theme for these projects, and grants make up one-third of the $2.87 billion committed to this region;
  • The majority of international funding commitments take the form of debt ($11.84 billion) and are most commonly used to finance the portfolios of financial service providers ($9 billion); and
  • 97 of the 2,235 projects in 2014 aimed to expand digital financial services. Fifty-one of these projects target Sub-Saharan Africa. These digital finance projects focus on improving operations, strengthening regulation and supervision, and supporting information and transparency.

"Even though growth in financial inclusion funding slowed in 2014, most funders reported to us that they expect to maintain or increase their funding commitments in the future,” says Matthew Soursourian, Financial Sector Analyst at CGAP and report co-author.

Publication Funding Figures of Dutch investors will be completed soon!

Each year, NpM also provides an update on the funding figures of its Netherlands-based members: aggregated data categorized into the levels of: investor/NpM member, country, funding instrument, type of project and funding currency. The data represented here is based on the CGAP/MIX Funder Survey 2015. The data collection of funding activities in 2014 is almost completed! 

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