Financial Sector Development in Africa: Opportunities ... - World Bank

10 Jarotschkin
Although total borrower and depositor growth rates were recorded at
11 percent and nearly 20 percent, respectively, in 2009, these rates contracted
by 31 percent and 15 percent, respectively, in 2010. Breaking the
number of borrowers and depositors down further into subregions, a very
diversified picture unfolds: MFIs in East and North Africa take the lead
by delivering loans to 2.5 million and 1.8 million borrowers, respectively,
while MFIs in Southern (0.59 million borrowers), Central (0.31 million),
and West Africa (1.82 million) are lagging behind (figure 1.2a). And yet
all regions remain far below the 10 percent penetration rate. MFIs in
North and East Africa have a penetration rate of only 5.7 percent and 2.8
percent, respectively, while MFIs in Southern, Central, and West Africa
deliver loans to only 0.8 percent, 0.5 percent, and 1 percent of borrowers
living below the national poverty line. As for depositors, MFIs in East
Africa count nearly 10.5 million (11.5 percent penetration rate). MFIs in
West and Central Africa account for 5.3 million and 0.5 million depositors,
respectively—still, these numbers mean that only 3 percent and 1.6
percent of the poor are reached. Way behind are MFIs in Southern and
North Africa, with only 0.6 million and 0.03 million depositors in 2010,
which means only 0.8 percent of Central Africa’s poor and even fewer—
0.1 percent—of the poor in North Africa have access to deposits. This
range is remarkable since all regions started out with a similar level of
depositors in 2000 (see figure 1.2b). MFIs in East Africa did not experience
depositor growth spurts until 2002 but grew significantly afterwards,
through the crisis and beyond, though to finally slump in 2010.
Figure 1.2 Total Borrowers and Depositors across Africa, 2000–10
a. Borrowers (millions)
b. Depositors (millions)
No. of borrowers
5
4
3
2
1
0
2000
2001
2002
2003
2004
2005
Year
2006
2007
2008
2009
2010
No. of depositors
15
10
5
0
2000
2001
2002
2003
2004
Central Africa East Africa North Africa
Southern Africa West Africa
2005
Year
2006
2007
2008
2009
2010
Source: MIX Market database 2012, http://www.themix.org/publications/mix-microfinance-world.
Note: All figures provided by MIX Market represent trends because not all MFIs in a country report to the database.