Study of Microfinance Sector Capacity Building in Sierra Leone

not charity, MFIs source most of their funding from the money market
and some from concessional lenders, the institutions are continually
improving their profitability and sustainability.
4. Integration: During which most MFIs have embraced sound
practices, some MFIs have grown into regulated financial institutions
without significantly changing their major client characteristics,
commercial banks start to downscale their lower end market into
microfinance clients (and develop suitable products for these), MFIs in
their diversification also take up some of the commercial banks’ lower
end market. Most MFIs get their money from the local or international
money market, the institutions no longer yearn for grants to fund the
loan portfolio, outreach is deep and wide, product development and
innovation is widespread, competition comes from both other MFIs as
well as the more formal banks, country industry standards are taken as
a given, the network organisation plays the role of high level advocacy
and custody of sound practices, there are codes of conduct for MFIs,
profitability and sustainability are obvious targets, not just promoted by
professionals but which the institutions keenly work towards.
Sierra Leone is currently at the early period of the growth
stage, and therefore would benefit a lot from the
implementation of a well formulated industry capacity
building strategy.
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