MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases 2009 Arab Microfinance Report with Focus On Microfinance Sector Crisis in Morocco

The Microfinance Information Exchange (MIX) has partnered up with Sanabel, a nonprofit organization dedicated to advancing Arab microfinance [1], and CGAP (Consultative Group to Assist the Poor), an independent policy and research center housed at the World Bank Group [2], to release the Arab Microfinance Analysis and Benchmarking Report for 2009 [3].

The report, which can be found on the MIX Capital Market website, covers information from the year 2009 and summarizes the performance of the microfinance sector in the Arab region [4]. It contains information on 54 microfinance institutions (MFIs) in 10 Arab countries [3]. It also contains trend data from 2006 to 2008 regarding 35 MFIs in the area [3].

The report has a section which focuses exclusively on the microfinance sector crisis in Morocco, where microfinance outreach fell by 6 percent in 2008 [4]. Following this, the report then “highlights key regional policy improvements, followed by a study of the funding structure of the microfinance sector, the deep changes that have occurred, and key funding characteristics in terms of volume, lender type, and pricing” [4]. The report then goes on to analyze each country individually based on portfolio quality and the “profitability of the microfinance sector in the region” [4]. According to the report, the Arab region “has the highest return on assets (ROA) in the world” [4].

By Julia Korn, Research Associate

About The Microfinance Information Exchange (MIX):

MIX provides detailed financial and social performance information from microfinance institutions (MFIs), as well as business information from market facilitators and donor organizations and investors in microfinance. MIX was founded by CGAP (Consultative Group to Assist the Poor) and is sponsored by Citi Foundation, Deutsche Bank Americas Foundation, International Fund for Agricultural Development (IFAD), and the Bill & Melinda Gates Foundation.

About Sanabel:

Sanabel, a microfinance network of Arab countries was established in 2002 by 17 founding members from 7 Arab countries to form a regional network of microfinance institutions in the Arab world. Its headquarters are located in Cairo, Egypt. Currently Sanabel has 64 members from 12 Arab countries. Members of Sanabel serve 2.4 million clients, which reportedly represents 83 percent of the total microfinance clients in the region. In 2004, Sanabel was incorporated and registered as a nonprofit organization in both Atlanta, Georgia, and in Cairo.

About CGAP:

Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to providing financial access for the world’s poor. CGAP is supported by over thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

Sources and Additional Resources:

[1] Sanabel. http://www.sanabelnetwork.org/en/about

[2] MicroCapital Universe: CGAP. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGA…

[3] Microfinance Gateway. “MIX Releases Arab Microfinance Report 2009” on May 20, 2010. http://www.microfinancegateway.org/p/site/m/template.rc/1.1.5208/

[4] MIX Market: “2009 Arab Microfinance Analysis & Benchmarking Report,” May 2010. http://www.themix.org/sites/default/file/2009%20Arab%20Microfinance%20An…

MicroCapital Universe: MIX Market. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mic…

MicroCapital Universe: Sanabel. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=san…

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