Source: International Finance Corporation (IFC).
Original press release available here.
BEIRUT, July 31 – International Finance Corporation (IFC), a member of the World Bank Group, and Grameen-Jameel Pan-Arab Microfinance Limited, a social business, released a study that finds there is strong demand for microfinance in Lebanon and recommends ways to improve access to finance for smaller businesses.
According to Lebanon: A Diagnostic Study on the Demand for Financial Services by Micro and Small Enterprises, Lebanon’s microfinance market is relatively small (about 286 USD million), yet only 11.5 percent of the demand is met by existing financing sources. The study argues that access to finance by the country’s micro and small enterprises can be improved by developing and upgrading existing microfinance institutions, rather than setting up new specialized institutions.
The study is part of IFC’s overall strategy to create a commercially viable microfinance sector in the Middle East and North Africa. It is also part of Grameen-Jameel’s efforts to ensure that demand for microfinance services in the Arab world is met.
There is an urgent need for human resource development in the microfinance sector. Advisory services and training, with a focus on best practices in credit methodology and marketing, are crucial. There is also a need for additional funding to help providers expand their product portfolios and reach in the region, thus increasing access to finance.
The study was funded by IFC and Grameen-Jameel and conducted by the Frankfurt School of Finance and Management, Bankakademie HfB. This initiative is part of an agreement signed with Grameen-Jameel and CGAP (the Consultative Group to Assist the Poor) in May 2007, to help the Lebanese government scale up microfinance and microenterprise development.
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