Australian Development Gateway

The Australian Development Gateway (ADG) strives to support members of the development community in their efforts to reduce poverty and enhance sustainable development in the Asia Pacific region. The site has been created with participation from members of government, private, academia and non-government organisations. User feedback mechanisms have been incorporated to guide future directions of the site. The site is optimised for low bandwidth access to enable the widest participation throughout the Asia Pacific region.

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Lending Mechanisms

The market for foreign investment in microfinance (pdf 311kb)

Many microfinance institutions (MFIs) in developing countries receive foreign funding. This brief looks at these foreign investors and the demand for their services. It presents a view of the market and addresses key questions, including:

  • How much foreign investment in MFIs is really private or commercial?
  • Where is the investment being placed, in terms of region, number, and type of MFIs?
  • Are investors competing to invest in MFIs?
  • As MFIs grow and absorb more funding, what is the likely role of foreign investment compared with domestic sources?
  • Does foreign debt create inappropriate currency risks for MFIs?
  • What practical lessons emerge from this analysis?
 

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