By Guest Author, Robert Lowry, Unitus As I discussed yesterday, Unitus focuses on two kinds of microfinance institutions (MFIs) for partnership: emerging microfinance institutions, which serve more than 2,500 clients and are in the early stages of growth; and commercial startups, which may not have a track record of growth but are well-capitalized and have
By Guest Author Robert Lowry, Unitus The challenge of finding great microfinance institution partners is one every microfinance fund faces. At Unitus, selecting the right partners is critical to reaching our growth goals. We’re often asked, How do you select your partners? This article will answer that question by providing a brief overview of the
By Robert Lowry, Unitus, Guest Author Microfinance reaches fewer than 20% of the people who could benefit from it. Only 2% of microfinance institutions serve more than 100,000 clients. Why is the impact of microfinance, after more than 30 years of effort, still so limited? A big reason is efficiency—or lack thereof. Inefficient microfinance institutions
By Robert Lowry, Unitus Microfinance is a powerful, sustainable way of reducing poverty. However, despite its tremendous strength, it’s just not available to enough people. Three decades after Muhammad Yunus started giving microloans to women in the village near his university in Bangladesh, fewer than 20% of the world’s working poor have access to basic
Political stability must be viewed as a precursor to economic development. How else do you explain the success of microfinance in places such as India, Mexico, South America, and its failure (for the most part) in Africa (aside from limited success in places such as Kenya – which is a rather stable government for the
Countries such as Iraq, which have not been involved in a capitalistic economic circumstance, are going to experience growing pains as they attempt economic development. Among the most important requirements will be access to capital, and likely in case like this, access to microfinance. My first question about the banking capabilities in the area reveal
To conclude the interview, I ask about Africa. The general political instability has created an environment which makes it difficult for microfinance investments. However, you have to wonder if some socio-economic stability would not provide increased political stability? A vicious cycle exists, but can it not be concerted into more of a virtuous cycle? SM:
Chris earlier brought up Compartamos, an MFI currently operating in Mexico. It seems they have a solid customer base and a very profitable business strategy – further proof of the validity of cash-positive microfinance business models. SM: How many loans does Compartamos have ath the moment? CB: I think they have about 600,000 customers. I