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

Microfinance in Africa 17
Figure 1.9 Costs and Borrowers, African Subregional Median, 2005–10
Cost per borrowers
USD
400
300
200
100
0
2005
a. Cost per Borrower
US dollars
2006
2007
2008
2009
2010
Borrowers per MFI
staff member
b. Borrowers per MFI Staff Member
200
100
0
2005
2006
2007
2008
2009
2010
Year
Year
Central Africa East Africa North Africa
Southern Africa West Africa Africa
Source: MIX Market database 2012, http://www.themix.org/publications/mix-microfinance-world.
Figure 1.10
Median Yields on Gross Portfolio across African Subregions
0.7
Yield on gross portfolio
(nominal, percent)
0.6
0.5
0.4
0.3
0.2
0.1
0
2005
2006
2007
2008
2009
2010
Year
Central Africa East Africa North Africa
Southern Africa West Africa Africa
Source: MIX Market database 2012, http://www.themix.org/publications/mix-microfinance-world.
on asset performance does not depend only on efficiency and productivity,
it would coincide with the efficiency and productivity of better-performing
regions within Africa. The weakest-performing regions in terms of productivity
and efficiency—Central and Southern Africa—also have the
lowest returns on assets, while North Africa in particular, followed by
East Africa, is on the opposite side of the spectrum.
High costs also show up in the interest rates that MFIs in Africa charge:
only MFIs in the Middle East had a higher yield on portfolio than those
in Africa. Overall in Africa, the median yield portfolio rose from 2009 to
2010 (figure 1.10). On the subregional level, median yields to portfolio
decreased for MFIs operating in Southern and West Africa, whereas those
for MFIs in East and Central Africa increased. While financial sustainability
is crucial, it would be more welcome to see this development