Greater interest in microlending by retail and commercial banks and increased microfinancing by private firms have pushed microlending activity to record levels, both in the value and number of microloans disbursed.
Statistics from the Micro Finance Regulatory Council (MFRC) show strong microlending activity for the quarter ending August 2004, with banks increasing their share by 14% to nearly Rand 2bn (US$349.7m).
Disbursements since May last year showed a robust upward trend, jumping from Rand 3.3bn in May 2003 to Rand 4.91bn in August 2004. Disbursements from May to August this year grew by 11% from Rand 4.42bn to Rand 4.91bn what presents the highest level reported since 2000.
"The strong lending levels are a response to the vigorous economic conditions the country is currently experiencing," says MFRC chief executive officer, Gabriel Davel. Correspondingly the number of loans disbursed increased by 8% from 3.26m to 3.53m.
