IFC & Microfinance
     IN PARTNERSHIP WITH




MICROFINANCE AT A GLANCE
Microfinance is an important tool to improve livelihoods at the base of the pyramid. Access to finance has proven to reduce
poverty and enable the poor build assets, increase incomes, and reduce their vulnerability to economic stress.
Worldwide, the microfinance industry is estimated at $60-100 billion. The industry has experienced rapid growth, with leading
microfinance institutions growing by 20 percent per annum in the past 5 years. Yet the sector still reaches less than 20 percent
of its potential market among the world’s three billion low-income people.


IFC IN MICROFINANCE
IFC has been helping shape microfinance industry for over 20 years, creating partnerships, fostering investment sustainability,
and driving for development impact.



                                                             More than                            Reaching people in
              Over   $3 Billion
            in committed investments                140 client MFIs                             60 countries

OUR PORTFOLIO *                                                         IFC in Microfinance: Global Map
      IFC committed $402 million in
       FY13 in 51 projects with MFIs
       across the world.

      IFC     cumulative       investment
       portfolio      in    microfinance
       exceeded       $3   billion,    with
       outstanding      commitments      of
       $1.45 billion.

      IFC's advisory services comprised
       $66.2     million,    representing
       technical assistance for 73
       projects.

      IFC's client financial institutions
       extended 23 million micro loans
       for a total of $25 million and had
       25 million deposit accounts
    IFC        over SERVICES
        ADVISORY
       worth          $57 billion (as of
       December 2012).

               *As of June 2013 (end of FY13)
                                          IFC & Microfinance
                                          IFC ADVISORY SERVICES


OUR FOCUS AREAS
                                          IFC & Microfinance
INSTITUTION BUILDING & STRENGTHENING
IFC supports microfinance providers to build and strengthen their operations by providing advice and training on portfolio
management, strategic planning, responsible finance practices, and operational efficiency.

TRANSFORMATION
IFC supports transformation of microfinance providers into regulated commercial microfinance institutions or banks,
enabling them to offer a broader range of services and build a diversified funding base.

RISK MANAGEMENT
IFC assists microfinance institutions in strengthening their risk management practices and offers workshops to raise
awareness of the importance of sound risk management.

INNOVATIVE PRODUCT SOLUTIONS
IFC helps microfinance institutions design and streamline new products and distribution channels such as mobile banking,
housing finance, and insurance.

DOWNSCALING
IFC supports commercial banks entering the microfinance sector, helping them tailor financial products for low-income
customers and micro-entrepreneurs.


OUR PROJECTS

                                     ENDA Inter-Arabe, Tunisia: Founded in 1990, ENDA Inter-Arabe (ENDA) has risen to become
                                     the largest MFI in Tunisia, and one of the most successful microfinance institutions in the
                                     Middle East and North Africa. Yet in 2011 ENDA was hit hard by the economic instability in the
                                     region triggered by the Arab Spring: many microfinance clients lost their livelihoods and were
                                     unable to make payments on time.
                                     At a time when funding sources were scarce, IFC played an important counter-cyclical role,
                                     extending a local currency loan worth $6.5 million to ENDA. In parallel, IFC helped the
                                     institution further adapt its recovery strategy, develop and implement advanced risk
                                     management practices, portfolio monitoring, and adjust its products to client needs.
                                     While ENDA slowed its expansion to emphasize portfolio quality over volume, it kept the
                                     interests of its clients in mind. To this end, ENDA continued to serve agri-entrepreneurs in
                                     Tunisia’s rural areas and provided financial services to refugees from Libya. As of June 2013,
                                     ENDA had over 226,000 active clients, 65 percent of them women, and a loan portfolio of
                                     nearly $90 million. Its portfolio at risk was at 3 percent – among the lowest in the region.




 Ujjivan, India: Ujjivan Financial Services is a large-scale microfinance institution in India, a
 country with very low levels of access to formal sources of financing for the poor. Most of
 Ujjivan’s 1.1 million clients are women with little or no proof of income: vegetabl e vendors, sari
 weavers, carpet makers, and the like.
 After a microfinance crisis in the Indian state of Andhra Pradesh significantly curtailed investor
 appetite in the sector, Ujjivan turned to IFC for an $8.1 million equity investment to fund its
 future growth plans and provide confidence to other investors and lenders. This investment was
 part of IFC’s counter-cyclical approach to microfinance investments in India, helping Ujjivan and
 other clients keep financing large numbers of women borrowers. IFC is also advising Ujjivan in
 piloting a microfinance housing product as a pilot: micro and small loans for home
 improvements, construction, land acquisition, and property purchase.




Media contacts:
John McNally | JMcnally@ifc.org | +1 (202) 458-0723
Sona Panajyan| SPanajyan@ifc.org | +1 (202) 473-9751