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

Microfinance in Africa 11
A Special Focus on Female Borrowers in Africa
One of the most obvious reasons why microfinance has focused on
women, especially in its infancy, is the disproportionate effect of poverty
on them. In Africa overall, the median ratio of women to total borrowers
has been constantly above 50 percent and peaked around 78 percent,
both in 2005 and in 2010 (figure 1.3). While these ratios were lower in
Latin America and the Caribbean (65 percent) and the Middle East
(46 percent) in 2010, they were higher in South Asia and in Europe and
Central Asia, at 80 percent and 99 percent, respectively. On the subregional
level, only North and Southern African MFIs cater to more women
than the continent-wide median MFI.
Urban versus Rural Supply of Microfinance
Microfinance has been applauded for reaching into areas and providing
access to customers that other financial services have left out. All across
Africa, the rural population is vastly underserved by financial institutions.
Unfortunately, thus far microfinance has not been the exception to this
trend. According to data from the Consultative Group to Assist the Poor
(CGAP) and World Bank (2010) on branches across Africa, the distribution
of rural microfinance services—such as ATMs and POS locations—is
rather slim compared with urban ones (see figure 1.4).
Figure 1.3 Ratio of Women to Total Borrowers, 2005–10
120
100
80
Percent
60
40
20
0
2005
2006
2007
Year
2008
2009
2010
Central Africa East Africa North Africa
Southern Africa West Africa Africa
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. Data represent subregional medians.