Beirut - May 2009
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Transcript of Beirut - May 2009
Beirut - May 2009
State of the Industry in 2008
Ranya Abdel-BakiTransparency & Research Manager
Sanabel 6th Annual Conference
Sanabel – The Microfinance Network of Arab Countries
Data Collection & Resources
Primary Sources:
•Sanabel Annual Industry Survey• FY 2008 data•Sample: 363 Arab MFIs
•Benchmarks (Sanabel/MIX Annual Data Collection for MBB)• FY 2007 data• Sample: 48 Arab MFIs
•Fixed Sample Benchmarks•FY 2004 FY 2008 data•Sample: 20 MFIs
Secondary Sources:
•CGAP Funders Survey (FY 2007)
The Region in a Snapshot: Overview
2008 2007
Median Age 9.75 years 8.5 years
Number of Branches 2,542 1,960
Number of Employees 21,808 18,984
Percentage of Female Employees 31% 32%
Number of MFIs with HR Managers 37 MFIs NA
Sanabel Annual Industry Survey 2008
The Region in a Snapshot: Financial Services in 2008
The Region in a Snapshot: Non-Financial Services in 2008
The Region in a Snapshot: Outreach & Scale in 2008Sanabel Annual Industry Survey 2008:
2008 2007
Number of Borrowers 3.141 million 2.985 million
% Women Borrowers 62% 59%
% Rural Borrowers 40% 42%
% Borrowers Below Poverty Line 60% 63%
Gross Loan Portfolio USD 1.492 billion USD 1.405 billion
Average Loan Balance USD 475 USD 471
The Region in a Snapshot: Outreach & Scale in 2008Sanabel Annual Industry Survey 2008:
Top MFIS # of Borrowers% of Borrowers
from TotalOutstanding GLP (USD)
% of GLP from Total
Top 5 MFIs1,337,597 43% 720,714,161 48%
Top1 0 MFIs1,866,806 59% 901,655,207 60%
Top15 MFIs2,194,517 70% 1,003,671,764 62%
Top 20 MFIs2,338,829 74% 1,079,579,440 72%
Outreach: Breakdown by Country in 2008
Scale: Breakdown by Country in 2008
Growth in Outreach and Scale (2005-2008)
Fixed Sample
Growth in Average Number of Borrowers and Percentage of Women Borrowers (2005-2008)
Fixed Sample
Change in Financial Structure in Arab Region (2007)
Funding in the Region: Amount (2007) Total Amount Committed by Funders in USD Million:
Source: CGAP, “Who is Funding Microfinance? Results of the First Global Survey of Funders”, Microfinance Portfolio, November 2008.
Funding in the Region: Key Players (2007)
Breakdown by Type of Funder
Source: CGAP, “Who is Funding Microfinance? Results of the First Global Survey of Funders”, Microfinance Portfolio, November 2008.
Funding in the Region: Financial Instruments (2007)Breakdown by Financial Instrument
Source: CGAP, “Who is Funding Microfinance? Results of the First Global Survey of Funders”, Microfinance Portfolio, November 2008.
Funding in the Region: Recipients (2007)
Breakdown by Countries
< 50 million 50 — 100 million 100—300 million > 300 million
Algeria Palestine Egypt Morocco
Djibouti Syria
Iraq Tunisia
Jordan Yemen
Lebanon
Source: CGAP, “Who is Funding Microfinance? Results of the First Global Survey of Funders”, Microfinance Portfolio, November 2008.
Breaking Down Return on Assets (2007)
Yield on Portfolio (2006-2007)
Portfolio Quality in 2008
Legislation Highlights in 2009
Developments
EGYPT •Single Regulators Law was passed•Consultation Event on the Draft General Rules for MFC was held on May 4th 2009•USAID EMF/CGAP working with MoSS on transformation plan
YEMEN •On March 22nd 2008 Parliament approved the new microfinance law allowing for the establishment of microfinance banks
Conclusion: Future Outlook
• Only strong sustainable MFIs are able to survive
• By doing what?
• Addressing key human resource challenges and align staff with MFI strategy
• Carefully selecting clients and matching products with client needs
• Clearly disclosing loan terms to clients and properly evaluating creditworthiness and repayment ability
• Introducing innovations and establishing market niches
• Securing funding and diversifying funding sources on the medium to long terms
• Applying sound governance and risk management practices