IFC Financing to Micro, Small, and Medium Enterprises (MSMEs)
IDA Countries (International Development Association)
MSME Financial Intermediary Portfolio, IFC’s OUTSTANDING BALANCE IN IDA
June 2008 500
• IFC’s outstanding portfolio of investments in financial intermediaries
(FIs) in IDA countries was $901 million in 106 FIs, of which $417 400
million was in 64 MSME FIs.
• IDA markets represent 7 percent of IFC’s total global investments in MSME FIs. 300
• 39 percent of IFC’s investments in MSME FIs in IDA are in equity, rep-
resenting 12 percent of IFC’s total equity investments in MSME FIs. 200
MSME Loans by IFC Clients, December 2007 100
• 47 of 53 IFC MSME FI clients in IDA countries reported data on 132 150 166 173 293 417
their December 2007 portfolio. Out of the 53 MSME FIs, 20 clients FY03 FY04 FY05 FY06 FY07 FY08
were microfinance institutions (MFIs) and 33 clients were small and
medium enterprise financial institutions (SME FIs).
• The average rate of non-performing loans (NPLs1) for MFIs was 2
• As of December 31, 2007, IDA country institutions had an out-
percent for micro loans, 1 percent for small loans, and 6 percent
standing portfolio of 842,290 MSME loans totaling $6.6 billion. Of
for medium loans. The average rate of NPLs for SME FIs was 6
these, 683,949 loans totaling $1.5 billion were from MFIs, while
percent for micro loans, 4 percent for small loans, and 4 percent
158,341 loans totaling $5.1 billion were from SME FIs.
for medium loans.
• Between January and December 2007, these clients disbursed 849,432
MSME loans worth a total of $7.5 billion, of which 730,390 loans Growth in Client Portfolio
totaling $2.1 billion were from MFIs and 119,042 loans totaling
• Over the last three years, the institutions that have provided data, have
$5.5 billion were from SME FIs.
reported an increase in their MSME outstanding loans by an CAGR2
• Average outstanding loan size for MFIs was $1,203 for micro of 35 percent, while volume increased by an CAGR of 45 percent.
loans, $21,048 for small loans, and $219,985 for medium loans.
• MFIs grew their portfolios by an CAGR of 33 percent in number
Average outstanding loan size for SME FIs was $2,595 for micro
and by an CAGR of 59 percent in volume; SME FIs increased their
loans, $31,049 for small loans, and $234,459 for medium loans.
portfolios by an CAGR of 53 percent in number and by an CAGR
of 40 percent in volume.
NUMBER OF MSME PORTFOLIO = 842,290 LOANS3 VOLUME OF MSME PORTFOLIO = $6.6 BILLION4
(Thousands) ($ Millions)
Small Loans 68 Micro Loans
Medium Loans 1,048
1 Overdue loans > 90 days.
2 CAGR: Compounded Annual Growth Rates.
3 Number: Micro loans (87% comes from MFIs; 13% comes from SME FIs), Small loans (32% comes from MFIs;
68% comes from SME FIs), Medium loans (7% comes from MFIs; 93% comes from SME FIs).
4 Volume: Micro loans (76% comes from MFIs; 24% comes from SME FIs), Small loans (24% comes from MFIs;
76% comes from SME FIs), Medium loans (7% comes from MFIs; 93% comes from SME FIs).
CONTACT: Ghada Teima | GTeima@ifc.org
Melina Mirmulstein | MMirmulstein@ifc.org
Please visit the regional Fact Sheets at ifc.org/gfm 2008