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Trends and Challenges in Microfinance
Reille, X.
Publication Date: 2003
Document Type: Presentation
Enabling factors in scaling up microfinance in the Arab World
This presentation was made on behalf of CGAP at the first annual conference of SANABEL, the microfinance network of Arab Countries. There is an unmet demand for microfinancial services in the Arab world. The author presents the various factors that can accelerate the growth of microfinance in the region.
In order to provide effective services it is important to offer an entire rage of financial products such as:
- savings and credit services,
- transfer services,
- insurance and micro-pension services.
It is also important to evolve diverse set of institutions to cater to the different market segments:
- commercial banks for lower middle income clients,
- credit unions and cooperatives for the economically active poor,
- financial NGOs for the very poor,
- grant making bodies for the destitute.
The presentation also states that ensuring strong internal management systems in MFIs as well as regular audits, ratings and performance benchmarking are important for the healthy growth of the sector. Supportive and enabling government regulations and policies and donor sensitivity to local needs are equally important for the growth of microfinance.
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