The current state of microfinance investment

(Caracas, December 2013). The eighth edition of the Report The State of Microfinance Investment 2013: Survey and Analysis of Investment Vehicles, was prepared by MicroRate, a risk rating company specialized in microfinances, with the support of CAF, Development Bank of Latin America, Citi Microfinance, European Investment Bank, Grand Duchy of Luxembourg, Luxembourg Fund Labeling Agency (LuxFLAG) and PriceWaterhouseCoopers (PwC). 

The report contributes to increase interest and transparency in the industry, and this year, it included the participation of 92 of the 102 investment vehicles specialized in microfinances, which manage assets for USD 8.1 billion, that is, 95% of the total. 

The managers of these vehicles shared their impressions and investment plans in the sector through a survey and, on the other hand, MicroRate conducted an analysis of the industry's available information. 

The report reflects that the growth of the microfinance investment vehicles continues to advance, and the 2012 data show that they have 17 percent more assets than in 2011, in addition to a portfolio that grew by 18 percent. With respect to investors, institutional investors are the ones with the greatest participation, reaching 56 percent of the total investment quota. 

All the regions have experienced growth in the sector. Specifically, in Latin America, the increase reached 24 percent, while other regions experienced the following growths: Asia/East Pacific (23 percent), South Asia (12 percent), Africa (12 percent) and Europe/Central Asia (10 percent). Among the countries with the fastest growth, Azerbaijan (45 percent), Georgia (78 percent), Mongolia (38 percent) and Bosnia (43percent) stand out. 

The full report is published in CAF's web site: CAF: MicroRate the state of microfinance investment 2013