Madagascar : propitious microfinance progress in 2012

Microfinance has touched 29.69% of Malagasy households in 2012 against 10% in 2008. The evolution of the sector is due to economic difficulties that the country is currently facing.

Many Malagasy households now use microfinance. In four years, the number of people who came to ask for microcredit has almost doubled, from 529 774 to 984 683 people.

Today, the microfinance institutions are over banks in terms of coverage. Microfinance in Madagascar now affects 29.69% of households against 10% 4 years ago. The sector also affects almost 22 regions of the country.

This interest in microfinance is due to the economic crisis that the country is currently experiencing. Since the beginning of the crisis in 2009, the "Red Island" recorded 4 million more people living below the poverty line and 336,000 unemployed, placing Madagascar as one of the poorest countries in the world.

Thus, many households choose to use microfinance to develop and sustain their businesses or other income generating activities.

According to the report of the vice prime minister in charge of Economy and Industry of the country: "The outstanding loans have increased from 70,093 million Ariary (local currency, approximately €24 millions) in 2008 to 314,791 million Ariary (about €107 millions) in 2012".

In addition, "the competition savings and deposit showed a sharp increase with 233,530 million Ariary (about €80 millions) in 2012 against 63,303 million Ariary in 2008 (about €22 millions)" according to the document written by Midi Madagascar.

Today, 785 microfinance institutions are present on the island instead of 683 in 2008.

Finance today on a project in Madagascar!

Source : LINFO.RE,

Tags : microfinance, MicroWorld, Madagascar, ariary, economy, microcredit