Sector study N°1 - Global assessment of the microfinance sector in Central America and the Caribbean: strategic challenges for the future

Between 2018 and 2021, REDCAMIF published a series of studies on microfinance in Central America and the Caribbean to highlight the advances and challenges of the inclusive finance sector in the region. This document reflects the joint effort that REDCAMIF and ADA have made over the past 10 years to promote the financial and social inclusion of micro and small entrepreneurs. This study is the first in the series.

The microfinance sector in the region has been developing in a context full of economic, political and social uncertainties. The evolution of the sector in the midst of a complex context and increased competition for microfinance institutions, has highlighted the need to increase information, innovation and competitiveness in the sector. Although this has been discussed in several international forums, this study allows us to identify in a synthesized and schematic way the strategic challenges that will influence the development and strengthening of the Microfinance sector in Central America and the Caribbean in the medium term.

The study has been divided into 2 main sections, the essential content of these sections tries to analyze and describe two levels: (i) the general environment or context of each of the 7 countries, which summarizes socio-political, macroeconomic and public policy issues, sector trends and challenges by country; (ii) the aggregate analysis at the regional level of trends and challenges in the microfinance sector divided into the main problems existing in the industry in the medium term.