Speakers Corner #9: Dependency vs. Sustainability: Impacts of Foreign and Domestic Investment in MFIs

This was the ninth Speakers Corner that took place on May 9-10, 2006. The topic for this event was Foreign and Domestic Investment in MFIs. As a starting point for the discussion, we requested that participants view the  presentation, "Financing MFIs: The Context for Transitions to Capital," a narrated, online presentation that explored the reason for the existence of a gap between microfinance institutions’ demand for finance and the current supply of private sector funds, which are controlled by investors who remain cool to investing in MFIs despite the microfinance industry’s demonstrated profit potential. It explores specific challenges for the industry to mobilize commercial capital, including savings, debt and equity (both foreign and domestic), as well as the impact that continued donor subsidies have on microfinance commercialization. It concluded with suggestions to donors and other stakeholders on how to move the industry toward this vision as the best way to significantly expand outreach to the poor.