Micro and SME Finance Market Outlook 2017

Paper
Date Published: 
Nov 2016
Author: 
Hailey, P., Brassel, D. & Janett, U.

Summary of market trends and expected industry developments for 2017

This is the seventh edition of the Microfinance Market Outlook report. For 2017, the publication has broadened its scope: for the first time since the launch of the Outlook, the report is looking at the landscape in key investment markets not just for microfinance but also for the provision of financial services to small and medium-sized enterprises (SMEs). 

With the support of 43 micro and SME finance experts, the study analyzes trends in the market, reviews this year’s major developments and looks ahead to 2017. The key findings of the 2017 Market Outlook are:

  • In 2017, global micro and SME finance markets will grow by an average of 10-15%;
  • 25-30%: The highest growth rate is expected in Asia Pacific, driven by developments in India and strong growth in the region;
  • 10-15%: In North Africa and the Middle East, the micro and SME segments continue to be underserved – resulting in significant growth in demand;
  • 10%: In Eastern Europe and the Caucasus, experts hope that a gradual recovery of the Russian economy will pave the way for a return to growth;
  • 5-10%: In Sub-Saharan Africa, certain markets are experiencing strong catch-up growth, while in other markets, this type of growth is being restricted by the difficult economic environment;
  • 5-10%: With its very mature micro and SME finance markets, Latin America expects solid growth, due in part to the positive economic environment in the US;
  • 90% of the micro and SME finance experts surveyed anticipate that the proportion of SME financing in their markets will grow over the next five years; 30% expect it to increase by more than 20%;
  • 65% of the experts surveyed expect to see a consolidation of financial institutions in their markets;
  • 43% indicated that they expect regulation to improve in 2017;
  • 50% of all those surveyed believe that the interest rates charged on loans in their markets will decrease in 2017.
Type: 
Paper