SA Microfinance Market Analysis Abstract

Admin

20 February 2018

2018

Overview

South Africa’s unbanked population increased in 2018 due to several corporate restructuring initiatives, layoffs and retrenchments which are set to continue in the immediate future. Consequently, up to a third of the population rely on microfinance products and lines of credit to sustain their

livelihoods and cover necessities such as Food/emergency (47%), transport (11%), building /renovating/buying house (11%), Bills (9%), giving to family member (6%), education (9%), to buy motor vehicle (7%).

Why buy this report?

This report provides an informed opinion on the state and future of South Africa’s microfinance industry. The sector’s key services include but are not limited to loans, insurance, and savings deposits. The report begins with an overview and an understanding of the sector’s market dynamics to provide proper context on the industry’s challenges and opportunities. The report goes on to quantify the market including a historic review of how the market has grown over the last few years and what has contributed to the growth. Profiles of key industry participants follow with a market share analysis that provides insights on who the sector’s key players are from a revenue, innovation and key developments standpoint. Our report also provides forecasts and concludes with key recommendations for participants and stakeholders. One of the report’s key recommendations is the need for microlenders to offer an all-in-one lending solution that includes funding for start-up businesses, insurance, education funding, and funding for unforeseen emergencies. In addition, flexibility and the ability to give individual attention to customers are key differentiators that microlenders can adopt to set themselves apart from competitors. With increasing digitisation, microlenders can partner with telecom companies to digitise transactions and lessen reliance on cash helping MFIs to reduce cost from both a supplier and customer’s perspective.

Use Birguid’s South African Microfinance Market Analysis to answer the following questions:

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