Scaling up Microfinance in Eastern and Western Africa with Lessons from India

This paper compares experiences across Africa with those in India, and identifies the challenges faced by MFIs that may guide public policy in the sector. It provides tentative conclusions based on a qualitative assessment of recent developments in the surveyed countries, supported by background material and studies undertaken by the International Monetary Fund (IMF) and World Bank. The paper recommends that African policy makers should spread microfinance in Africa and bring down the cost of capital and operating costs, thus strengthening the bonding between microfinance and the formal financial system.