Microfinance penetration rate on the rise in Madagascar
The penetration rate of microfinance in Madagascar went from 16 percent in December 2009 to 17.5 percent in December 2010, L'Express de Madagascar reports.The penetration rate of microfinance in Madagascar went from 16 percent in December 2009 to 17.5 percent in December 2010, L'Express de Madagascar reports.
Quoting new figures from the National Microfinance Office, the newspaper revealed the number of counters at mutualist microfinance institutions went from 470 in March 2010 to 486 the following year, while counters at non-mutualist microfinance institutions increased from 181 to 197 during the same period.
The total amount of outstanding loans from non-mutualist institutions grew from 3,897 million Ariary (€1.4 million) in March 2010 to 10,940 million Ariary in March 2011, while this total rose from 20,228 million Ariary to 55,771 million Ariary at mutualist institutions in the same timeframe.
According to a report from the Banking and Financial Supervision Commission of Madagascar, this progression is due to the introduction of a governmental programme aiming at promoting microfinance on the island back in 1999.
It included the creation of autonomous microfinance counters, the introduction of a legal framework adapted to microfinance and the strengthening of the supervision of such institutions.
In 2004, the national microfinance strategy was defined, with the creation of the National Microfinance Office. Its mission is to coordinate government policy for microfinance and promote the sector.
The government also launched a training programme for those involved in microfinance as well as fiscal incentives for specialist institutions.