Financing Businesses in Africa: The Role of Microfinance

This policy research paper evaluates how microfinance performed in providing business financing in 27 Sub-Saharan African countries. It uses data from the 2009 and 2010 Gallup World Poll, a nationally representative survey conducted in up to 157 countries per year. The paper also analyzes challenges the poor face in setting money aside to save, and discuss what policymakers can do to promote savings. The data, supported by statistical evidence in related literature on the use of microcredit around the world, demonstrate that economic gains from microcredit have been more modest than what was once believed.