Pro-poor microcredit in South Africa: cost-efficiency and productivity of South African pro-poor microfinance institutions

Figures & data

Table 1. Selected South African MFIs, May 2003

Name	Age	Offices	Staff	Active borrowers	Women borrowers	Average first loan	Average loan balance	Average balance/ GNI per capita
Beehive	8	3	54	5 892	75%	US$125	US$111	3,93
FINCA	3	1	50	1 386	96%	US$125	US$151	5,34
Marang	2*	19	145	15 836	95%	US$120	US$76	2,69
SEF	11	11	100	17 242	98%	US$67	US$82	2,89

Note: *Marang was formed out of two pre-existing MFIs, so aspects of its operation are older.

Table 2. Scale

Item	South Africa	Africa all	Africa small/low	World all	World–solidarity	World–low end
Age in years (average)	6	7	6	8	8	8
Offices	8,5	82	11	15	41	110
Active clients	10 096	18 640	11 678	11 698	47 884	42 520
Staff	90	120	47	101	278	222
Total assets (US$)	1 259 494	5 147 848	804 756	5 735 499	12 267 063	5 369 487
Outstanding principal balance (US$)	867 348	3 168 759	488 053	3 859 273	9 131 991	3 725 355

Table 3. Outreach

Item	South Africa	Africa all	Africa–small/low	World all	World–solidarity	World–low end
Average balance outstanding per client (US$)	105	181	54	453	371	135
Percentage of women clients	91%	77%	86%	61%	73%	86%
Average balance as a % of GNI per capita	3,7%	55,3%	15,3%	45,3%	46,0%	16,0%

Table 4. Expense

Item	South Africa	Africa all	Africa–small/low	World all	World–solidarity	World–low end
Total expense/total assets	101%	39%	50%	30%	31%	39%
Operating expense/total assets	84%	31%	37%	19%	22%	28%
Financial expense/total assets	11,7%	2,6%	2,5%	4,5%	3,0%	4,9%
Loan loss provision/total assets	4,8%	2,5%	3,6%	2,2%	2,3%	2,8%
Personnel expense/total assets	52%	15%	19%	11%	13%	15%
Non-staff administration expense/total assets	32%	16%	19%	9%	9%	14%

Table 5. Financial efficiency

Item	South Africa	Africa all	Africa–small/low	World all	World–solidarity	World–low end
Operating expense/loan portfolio	142%	56%	72%	27%	37%	50%
Operating expense per client	US$161	US$58	US$35	US$89	US$93	US$56
Personnel expense/loan portfolio	91%	27%	35%	15%	22%	26%
Average personnel expense as a multiple of per capita GNI	2,3	11,6	7,4	5,5	7,0	5,1

Table 6. Productivity

Item	South Africa	Africa all	Africa–small/low	World all	World–solidarity	World–low end
Borrowers per staff member	101	198	247	128	155	227
Borrowers per loan officer	150	413	462	308	356	682
Loan officers as a % of personnel	69%	42%	41%	45%	49%	49%

Table 7. The ‘salary burden’

	South Africa	Africa all	Africa–small/low	World all	World–solidarity	World–low end
Average salary as a multiple of GNI per capita	2,3	11,6	7,4	5,5	7,0	5,1
Average loan balance per client/GNI per capita	3,7%	55,3%	15,3%	45,3%	46,0%	16,0%
Average clients/staff member	101	198	247	128	155	227
Salary burden	61%	11%	20%	9%	10%	14%

Table 8. Salary burden scenarios

	South Africa actual	South Africa with adjusted loan size	South Africa with adjusted productivity	Africa–small/low	World–low end
Average salary as a multiple of GNI per capita	2,3	2,3	2,3	7,4	5,1
Average balance per client/GNI per capita	3,7%	15,3%	3,7%	15,3%	16,0%
Average clients/staff member	101	101	247	247	227
Salary burden	61%	15%	25%	20%	14%