2010 Funder Survey Results

Cross-Border Funding for Microfinance Results of the CGAP Funding Surveys 2010

What is cross-border funding?

About the CGAP surveys

Global results

Regional snapshots

Annexes Survey participants

Methodology and definitions

Outline

Local FundingCross-border Funding

What is cross-border funding?

Public Donors and Investors(Multilaterals,

Bilaterals, DFIs)

Private Donors and Investors (Foundations,

Institutional and Retail Investors)

Microfinance(Support for microfinance at all levels of the financial system: retail, market infrastructure, and policy)

Microfinance Investment

Intermediaries (MIIs)

Government funds

(State banks, Apexes,

Independent programs)

Local commercial

sources(Commercial

banksPrivate investors)

Deposits (Individual,

Institutional)

About the CGAP funding surveys

How representative are the data?

What are the main

indicators?

Where can I find more

information?

Who participates?

Over 150 funders, including public and private funders and microfinance investment intermediaries.

The CGAP surveys capture between 85 and 95% of total cross-border funding to microfinance.

Commitments: All funds set aside for microfinance, whether or not disbursed stock of funding at a given moment (December 2009).

Disbursements: All funds disbursed in the survey year flow of funds in 2009.

Visit www.cgap.org/funders or contact Barbara Gähwiler at [email protected]

Global Results

Overview on cross-border funding

41 Public Donors and Investors

(Multilaterals, Bilaterals, DFIs)

$14.6 billion

Private Donors and Investors

(Foundations, Institutional and Retail Investors)

$6.7 billion


Total Commitments to Microfinance as of December 2009: $21.3 billion1)

1) Amounts based on data submitted by 61 funders and 90 MIIs. 2) Includes funding through governments.

109 Microfinance Investment


$5.7 bln$2.4 bln$0.9

bln2)

$11bln2)

$1.2 blnApexes and

other Intermediaries

No data

$8.1bln $0.1 bln

Commitments growing, but at slower pace

• 150 funders reported $21.3 billion committed to microfinance as of December 2009

• Commitments grew by 17% in 2009 compared to 30% in 2008

• At least $3.2 billion was disbursed in 2009

21 313 (100%)

1 546 (7%)

6 188 (29%)4 724 (22%)

787 (4%)

4 064 (19%)2 544 (12%) 1 461 (7%)

Total East Asia & the Pacific

(EAP)

Eastern Europe & Central Asia

(ECA)

Latin America & the Caribbean

(LAC)

Middle East& North Africa

(MENA)

South Asia (SA)

Sub-Saharan Africa (SSA)

Multi-Region

Committed Amount (million USD)+17%

+4%

+21%+22%

+19% +38%+22%+1%

Amounts based on data submitted by 61 funders and 90 MIVs

Annual Growth Rates for 2008 to 2009

Public funding dominates…

69%63% 68%

54%

87% 84%75%

60%

31% 37% 32%46%

13% 16% 25%40%

Total EAP ECA LAC MENA SA SSA Multi-Region

Commitments by Type of Funder (%)

Public Funders Private Funders


• Public funders provide 69% of total commitments to microfinance.

• Only in LAC have private funders come close to rivaling public funding sources.

…but private funding growing faster

11%

-7% -9%

28%33% 32% 33%

Total Public Funders

Multilateral & UN Agencies

Bilateral Agencies

DFIs Total Private Funders

Foundations/NGOs Individual & Institutional

Investors

Growth by Type of Funder


Public Funders Private Funders

• Private funders’ commitments grew by 33% globally in 2009, while public funders increased their commitments by only 11%.

• Among public funders, multilateral and bilateral development agencies decreased their commitments compared to 2008, while DFIs increased their commitments by 29%.

Intermediaries channel half of funding

• Indirect funding: $10.7 billion are channeled via intermediaries such as microfinance investment vehicles, holding companies, and apexes.

• Direct funding: the remaining 55% go to the institution it is meant to support*. This can be a microfinance institution, a service provider at the market infrastructure level or a government.

* Funds channelled through governments are accounted for in the direct funding

45% 41% 45%36%

68%60% 56%

25%

55% 59% 55%64%

32%40%

44% 75%


Commitments by Funding Type

Direct Indirect

Data submitted by 58 funders and 90 MIVs

Capacity building represents 12% of commitments

88%83%

99%91%

84% 88%

67%76%

12% 17%1%

9% 16% 12% 33% 24%


Commitments by Purpose

Onlending Capacity Building


• 12% of commitments are dedicated to capacity building.

• 70% of capacity building funds are used to support the retail level, 17% to strengthen the market infrastructure and 13% are used at the policy level.

• Sub-Saharan Africa receives 33% of funding for capacity building and Latin America and the Caribbean 20%.

Equity funding on the rise, but debt remains high

• Debt remains the main financial instrument.

• Equity investments have grown fast. Both private investors and DFIs, the main providers of equity funding, have increased their equity investments.

66%

5%21%4%4%

Direct Funding by Instrument

Other

Guarantee

Grant

Equity

Debt

45%55%

Commitments by Type of Funding

Direct Indirect

Based on data submitted by 58 funder and 90 MIVs

Top 5 Funders Worldwide

Type% of Total

CommitmentsChange in Rank

1 KfW DFI 12% 2 World Bank Multilateral Agency 7% 3 EBRD DFI 6% 4 AsDB Multilateral Agency 6% 5 IFC DFI 5%

All 5 36%

Regional Results

East Asia and the Pacific (EAP)



$0.95 billion



$0.55 billion




Commitments to Microfinance for EAP as of December 2009: $1.5 billion*

* CGAP surveys capture 85 to 95% of the total cross border funding to microfinance

$0.94 bln

Ap

exes

$0.54 bln $0.01 bln

$0.5bln

Ap

exes

$0.01 bln

Cross-border funding to EAP

China receives more than a third of funding to EAP

Commitments by Country as of Dec. 2009, and 2008/2009 TrendCountry allocation is available for 63% of EAP commitments

↑↑ increases, more than 20 mln

↑ increases, 5 to 20 mln

→ same or change less than 5 mln

↓ decreases, 5 to 20 mln

↓↓ decreases, more than 20 mln

2009 Commitments

2008/2009 Growth

Cambodia $100 to 300 mln ↓China $300 to 500 mln ↑↑Indonesia $100 to 300 mln ↑Lao PDR $2 to 50 mln ↑Malaysia <$2 mln →Marshall Islands <$2 mln →Mongolia $50 to 100 mln →Myanmar $2 to 50 mln ↑Papua New Guinea $2 to 50 mln →Philippines $50 to 100 mln ↓↓Solomon Islands <$2 mln →Thailand <$2 mln →Timor-Leste <$2 mln →Vietnam $100 to 300 mln →

$2 to 50 mln

$51 to 100 mln

$101 to 300 mln

$301 to 500 mln

<$2 mln

Active Funders in EAP

Multilateral & UN Agencies Bilateral AgenciesAsDB AusAIDEC CIDA Accion Gateway Lux MDFIFAD Finland MoFA Advans MFLO-LCILO GTZ Alterfin MicroCred HoldingUNCDF JICA ASN-Novib MicroCreditWorld Bank Lux Dev BOLD I MicroVest I

Norad BOLD II MinlamDevelopment Finance USAID BOMS I OikocreditInstitutions (DFIs) BOPEF Opportunity LGFAECID Foundations & NGOs Consorzio Etimos OTIAFD Proparco Citi Foundation CRESUD Planet MicroFundBIO Cordaid DBMDF respA GMFCDC Doen Foundation DBMF-1 respA MFDCA USAID Ford Foundation Dignity respA MLFEBRD Gates Foundation DMCF SNSEIB Grameen Foundation DWM MF SNS MF IIFMO Hivos EMF Symbiotics DRFICDF ICCO Finethic Triodos FSFIFC Omydiar Network GCMC Triodos MFKfW Oxfam Novib Grameen CAMF Triodos-DoenNorfund Rabobank Foundation Hivos-Triodos Wallberg GMFOPIC Whole Planet Foundation KCD Global XXEB

Microfinance Investment Intermediaries (MIIs)

Funders active in EAP

KfW 11%World Bank 10%

AsDB 6%IFAD 6%GTZ 5%

Top 5 Funders in EAP% of Commitments to EAP

Eastern Europe and Central Asia (ECA)



$4.2 billion



$2 billion




Commitments to Microfinance for ECA as of December 2009: $6.2 billion*


Ap

exes

$1.98 bln

$3.2bln

Ap

exes

$1.3 bln$2.9 bln $0.02 bln

Cross-border funding to ECA

Commitments increased or stable in almost all countries






Commitments by Country as of Dec. 2009, and 2008/2009 TrendCountry allocation is available for 46% of ECA commitments

$2 to 50 mln

$51 to 100 mln

$101 to 300 mln

$301 to 500 mln

<$2mln

2009 Commitments

2008/2009 Growth

Albania $50 to 100 mln →Armenia $100 to 300 mln ↑Azerbaijan $100 to 300 mln ↑↑Belarus $50 to 100 mln →BiH $100 to 300 mln ↑↑Bulgaria $300 to 500 mln →Georgia $100 to 300 mln ↑↑Kazakhstan $50 to 100 mln ↓↓Kosovo $50 to 100 mln ↑↑Kyrgyz Republic $50 to 100 mln ↑↑Macedonia $2 to 50 mln →Moldova $50 to 100 mln ↑Montenegro $2 to 50 mln ↑Poland $2 to 50 mln ↑↑Romania $100 to 300 mln →Russia $300 to 500 mln ↑↑Serbia $100 to 300 mln ↑Tajikistan $100 to 300 mln ↑Turkey $100 to 300 mln ↑↑Turkmenistan <$2 mln →Ukraine $100 to 300 mln ↑↑Uzbekistan $50 to 100 mln ↑↑

Active Funders in ECA

Multilateral & UN Agencies Bilateral Agencies

AsDB CIDA Access Holding MF Enhancement Facility St Honore

EC DANIDA ASN-Novib MFLO-LC Symbiotics DRF

IFAD Finland MoFA BFSEF MFLO-Opportunity Triodos FSF

ILO GTZ BOLD I MFLO-SubDebt Triodos MF

IsDB MCC BOLD II MicroAccess2007 Triodos-Doen

World Bank Norad BOMS I MicroCredit Wallberg GMF

SDC Consorzio Etimos MicroVest I XXEBDevelopment Finance USAID DBMDF MicroVest IIInstitutions (DFIs) DBMF-1 Minlam

AECID Dignity Oikocredit

AFD Proparco DMCF Opportunity LGF

BIO Foundations & NGOs DWM MF OTI

CDC Citi Foundation EFSE OXUS

DCA USAID Cordaid EMF Planet MicroFund

EBRD DOEN Foundation FINCA MF Procredit Holding

EIB ICCO Finethic respA GMFFinnfund Gates Foundation GCMC respA MFFMO Grameen Foundation Grameen CAMF respA MLFICDF Mastercard Foundation Hivos-Triodos Rural ImpulseIFC Omydiar Network I&P ShoreCapKfW Oxfam Novib Impulse SIDIOPIC Rabobank Foundation Incofin SNSSIFEM Whole Planet Foundation KCD Global SNS MF II


KfW 21%EBRD 20%

IFC 9%EIB 4%

FMO 3%

Top 5 Funders in ECA% of Commitments to ECA

Funders active in ECA

Latin America and the Caribbean (LAC)



$2.5 billion



$2.2 billion




Commitments to Microfinance for LAC as of December 2009: $4.7 billion*


$2.1 bln

Ap

exes

$2.1 bln $0.1 bln

$2.5bln

Ap

exes

$0.4 bln

Cross-border funding to LAC

Peru and Mexico receive more than a third of total funding to LAC






Commitments by Country as of Dec. 2009, and 2008/2009 TrendCountry allocation is available for 42% of LAC commitments

$2 to 50 mln

$51 to 100 mln

$101 to 300 mln

$301 to 500 mln

2009 Commitments

2008/2009 Growth

Argentina $2 to 50 mln →Belize $2 to 50 mln →Bolivia $100 to 300 mln ↑Brazil $2 to 50 mln ↑Chile $50 to 100 mln →Colombia $100 to 300 mln →Costa Rica $2 to 50 mln ↑Cuba $2 to 50 mln →Dominican Republic$100 to 300 mln ↓Ecuador $100 to 300 mln →El Salvador $50 to 100 mln ↑Guatemala $2 to 50 mln ↓Guyana $2 to 50 mln →Haiti $2 to 50 mln ↑Honduras $50 to 100 mln →Jamaica $2 to 50 mln ↓Mexico $300 to 500 mln ↓↓Nicaragua $100 to 300 mln ↓Panama $2 to 50 mln →Paraguay $50 to 100 mln →Peru $300 to 500 mln ↑↑St. Kitts and Nevis<$2 mln →St. Vincent <$2 mln →Suriname $2 to 50 mln ↑Uruguay $2 to 50 mln →Venezuela $2 to 50 mln →

KfW 10%AECID 9%

World Bank 6%IFC 5%

MIF IADB 4%

Top 5 Funders in LAC% of Commitments to LAC

Active Funders in LAC

Foundations & NGOs Bilateral Agencies

Citi Foundation AusAID Accion AIM GMF Group Planet MicroFund

Cordaid CIDA Accion Gateway GPMF 2005, 2006, 2008 Procredit Holding

DOEN Foundation GTZ Alterfin Gray Ghost respA GMF

Ford Foundation Italy MoFA ASN-Novib Hivos-Triodos respA MF

Gates foundation JICA BBVA CODESPA I&P respA MLF

Grameen Foundation Lux Dev BOLD I Impulse Rural Impulse

Hivos MCC BOLD II Incofin SIDI

ICCO Netherlands MoFA BOMS I KCD Global SNS

MasterCard Foundation Norad BOPEF KCD Latinamerika SNS MF II

Omydiar Network SDC Consorzio Etimos LocFund St Honore

Oxfam Novib Sida CRESUD Lux MDF Symbiotics DRF

Rabobank Foundation USAID DBMDF MF Enhancement Facility Triodos FSF

Whole Planet Foundation DBMF-1 MFLO-LC Triodos MF

DID-Partnership MFLO-SubDebt Triodos-Doen

Development Finance Institutions (DFIs) Dignity MicroAccess2007 Unitus EF

AECID ICDF DMCF MicroCred Holding Wallberg GMF

AFD Proparco IFC DWM MF MicroCredit XXEB

BIO IIC ELF MicroVentures

CAF KfW EMF MicroVentures SICAR

CDC MIF IADB FIG MicroVest I Multilateral

DCA USAID Norfund FINCA MF Minlam & UN Agencies

EIB OPIC Finethic NICA EC

Finnfund SIFEM GCMC Oikocredit IFAD

FMO Global MF equity fund OTI World Bank


Funders active in LAC

Middle East and North Africa (MENA)



$0.7 billion



$0.1 billion




Commitments to Microfinance for MENA as of December 2009: $0.8 billion*


$0.67 bln

Ap

exes

$0.07 bln $0.03 bln

$0.08 bln

Ap

exes

$0.03 bln

Cross-border funding to MENA

Morocco and Egypt receive more than 60% of funding to MENA

Commitments by Country as of Dec. 2009, and 2008/2009 TrendCountry allocation is available for 88% of MENA commitments

2009 Commitments

2008/2009 Growth

Algeria $2 to 50 mln →Djibouti $2 to 50 mln →Egypt $100 to 300 mln ↓↓Iran <$2 mln →Iraq $2 to 50 mln ↑Jordan $2 to 50 mln →Lebanon $2 to 50 mln →Morocco $300 to 500 mln ↓Syrian Arab Republic $2 to 50 mln ↑Tunisia $2 to 50 mln →West Bank and Gaza $2 to 50 mln →Yemen $2 to 50 mln →

$2 to 50 mln

<$2 mln

$101 to 300 mln

$301 to 500 mln






Country breakdown is available only for direct funding

Active Funders in MENA

Multilateral & UN Agencies Foundations & NGOs Microfinance Investment Intermediaries (MIIs)

AfDB Citi Foundation Accion AIMEC Cordaid Consorzio EtimosIFAD Gates Foundation DBMDFWorld Bank Grameen Foundation DMCF

Grameen Jameel EMFDevelopment Finance Mastercard Foundation FinethicInstitutions (DFIs) Omydiar Network Hivos-TriodosAECID Oxfam Novib IncofinAFD Proparco JAIDABIO Bilateral Agencies OikocreditDCA USAID CIDA Planet MicroFundEIB GTZ respA GMFFinnfund Italy MoFA respA MFFMO JICA SIDIIFC MCC Wallberg GMFKfW Netherlands MoFA XXEBOPIC USAID

AECID 13%AFD Proparco 11%

IFAD 8%KfW 7%EC 7%

Top 5 Funders in MENA% of Commitments to MENA

Funders active in MENA

South Asia



$3.4 billion



$0.6 billion




Commitments to Microfinance for SA as of December 2009: $4 billion*


$3.36 bln

Ap

exes

$0.4 bln $0.2 bln

$0.5bln

Ap

exes

$0.04 bln

Cross-border funding to South Asia

$2 to 50 mln

$51 to 100 mln

$101 to 300 mln

$301 to 500 mln

$501 to 1,000 mln

>$1 bln

Commitments as of December 2009

2008/2009 Growth in

CommitmentsIndia > $1billion ↑↑Bangladesh $300 to 500 mln ↓Pakistan $100 to 300 mln ↓↓Afghanistan $100 to 300 mln ↓↓Sri Lanka $50 to 100 mln ↓↓Bhutan $2 to 50 mln →Maldives $2 to 50 mln →Nepal $2 to 50 mln ↓↓






Commitments by Country as of Dec. 2009, and 2008/2009 TrendCountry allocation is available for 86% of SA commitments

India receives 65% of total funding to SA

AsDB 27%World Bank 25%

KfW 9%DFID 6%IFAD 5%

Top 5 Funders in SA% of Commitments to SA

Active Funders in SA

Multilateral & UN Agencies Bilateral AgenciesAsDB AusAIDEC CIDA Aavishkaar Goodwell respA GMFIFAD DFID ASN-Novib respA MFILO Finland MoFA Bellwether Rural ImpulseIsDB GTZ BOPEF ShoreCapUNCDF Italy MoFA Consorzio Etimos SIDIWorld Bank JICA DBMDF SNS

Netherlands MoFA Dignity SNS MF IINorad DMCF Symbiotics DRFSDC Elevar Equity II Triodos FSF

Foundations & NGOs USAID EMF Triodos MFCiti Foundation Finethic Triodos-DoenCordaid Development Finance GCMC Unitus EFDoen Foundation Institutions (DFIs) Hivos-Triodos Wallberg GMFFord Foundation AFD Proparco I&PGates foundation BIO ImpulseGrameen Foundation CDC IncofinHivos DCA USAID India FIFICCO EIB MicroVenturesMSDF Finnfund MicroVentures IndiaOmydiar Network FMO MicroVentures SICAROxfam Novib IFC MicroVest IRabobank Foundation KfW MicroVest IIStromme Foundation Norfund OikocreditWhole Planet Foundation OPIC OTI


Funders active in South Asia

Sub-Saharan Africa (SSA)



$1.9 billion



$0.6 billion




Commitments to Microfinance for SSA as of December 2009: $2.5 billion*


$1.85 bln

Ap

exes

$0.3 bln $0.3 bln

$0.4bln

Ap

exes

$0.05 bln

Cross-border funding to SSA

Countries receiving most funding: Ethiopia, Kenya, Uganda, Mozambique, Mali, Tanzania, Nigeria, Ghana

Commitments as of December

2009

2008/2009 Growth in

Commitments

Commitments as of December

2009

2008/2009 Growth in

CommitmentsAngola 2 to 50 mln → Malawi 2 to 50 mln ↓Benin 2 to 50 mln ↓ Mali 50 to 100 ↑Burkina Faso 2 to 50 mln ↑↑ Mauritania 2 to 50 mln →Burundi 2 to 50 mln ↑ Mozambique 100 to 300 →Cameroon 2 to 50 mln → Namibia 2 to 50 mln →Cape Verde 2 to 50 mln → Niger 2 to 50 mln →Central African Republic 0 to 2 mln → Nigeria 50 to 100 →Chad 2 to 50 mln ↓ Rwanda 2 to 50 mln ↓Comoros 2 to 50 mln ↑ São Tomé and Principe 0 to 2 mln →Congo, DRC 2 to 50 mln → Senegal 50 to 100 ↑Congo, Rep. 2 to 50 mln → Sierra Leone 2 to 50 mln →Côte d'Ivoire 2 to 50 mln → Somalia 0 to 2 mln →Ethiopia 100 to 300 ↑↑ South Africa 2 to 50 mln ↑Gabon 0 to 2 mln → Sudan 2 to 50 mln ↑Gambia 2 to 50 mln ↑ Swaziland 2 to 50 mln ↑Ghana 50 to 100 ↓ Tanzania 50 to 100 ↑Guinea 2 to 50 mln → Togo 2 to 50 mln →Kenya 100 to 300 ↑↑ Uganda 100 to 300 →Lesotho 2 to 50 mln → Zambia 2 to 50 mln →Liberia 2 to 50 mln → Zimbabwe 2 to 50 mln →Madagascar 50 to 100 ↓






Commitments by Country as of Dec. 2009, and 2008/2009 TrendCountry allocation is available for 63% of SSA commitments

$2 to 50 mln

$51 to 100 mln

$101 to 300 mln

<$2 to 50 mln

IFAD 11%AfDB 7%

AFD Proparco 6%Gates Foundation 5%

EC 5%

Top 5 Funders in SSA% of Commitments to SSA

Funders active in SSA

ANNEXES

Survey Participants

Public funders

Multilateral and UN agencies

N=8 AfDB, AsDB, EC, IFAD, ILO, IsDB, UNCDF, World Bank

Bilateral agencies

N=15 AusAID, CIDA, DANIDA, DFID, Finland MoFA, GTZ, Italy MoFA, JICA, Lux Dev, MCC, Netherlands MoFA, NORAD, SDC, Sida, USAID

Development finance institutions (DFIs)

N=18 AECID, AFD Proparco, BIO, CAF, CDC, DCA USAID, EBRD, EIB, Finnfund, FMO, ICDF, IFC, IIC, KfW, MIF IADB, Norfund, OPIC, SIFEM

Private funders

Foundations and NGOs

N=16 Foundations: Citi, Doen, Ford, Gates, Grameen, Grameen Jameel, Mastercard, MSDF, Rabobank, Stromme, Whole Planet; NGOs: Cordaid, HIVOS, ICCO, Omidyar Network, Oxfam Novib

Individual Investors n/a CGAP estimates*

Institutional InvestorsN=4 + CGAP estimates*

ABP, ING, PGGM, TIAA Cref, and CGAP estimates*

*CGAP estimates are based on data from 90 MIIs. For more information on MIIs see http://www.cgap.org/p/site/c/template.rc/1.11.142715/

Method and Definitions

• Method: Figures are based on data reported by 61 funders and 90 microfinance investment intermediaries. CGAP used data provided by microfinance investment intermediaries to estimate funding from individual investors and institutional investors. All data is as of December 2009. Growth rates are based on a subset of respondents for which data is available for all years covered by the surveys. Country breakdowns are based on funding for which country allocation is available.

***

• Cross-border funding for microfinance: Like other development sectors, microfinance receives funding from public and private funders in developed countries. Depending on local capital markets and the regulatory environment, microfinance institutions in developing countries can also access local funding sources, such as client deposits or loans from local commercial banks. The CGAP surveys focus exclusively on foreign, or cross-border, funding for microfinance.

• Commitments: A common way to measure funding for microfinance is to look at funders’ commitments. Total commitments represent the total amount of all currently active investments and projects, whether the funds have been disbursed or are yet to be disbursed during the remaining lifetime of a project. As such, total commitments describe the stock of funds set aside for microfinance at a given time (i.e. December 2009 for the data above). To understand the actual flow of money to the microfinance sector, it is also necessary to look at annual disbursements.

• Microfinance Investment Intermediaries: Microfinance Investment Intermediaries (MIIs) are investment entities that have microfinance as one of their core investment objectives and mandates. MIIs can provide debt, equity or guarantees (directly or indirectly) to microfinance service providers. The main types of MIIs are Microfinance Investment Vehicles (MIVs), Holding Companies and others such as peer-to-peer lending platforms.

Advancing financial access for the world’s poor

www.cgap.org

www.microfinancegateway.org

http://www.themastercardfoundation.com/

http://www.uncdf.org/english/index.php

2010 Funder Survey Results

Economy & Finance

Transcript of 2010 Funder Survey Results