A couple of weeks ago, I attended the 12th Annual Microfinance Center (MFC) Conference in Serbia. It was my first time at a MFC Conference, well-known to be the premier microfinance event for the ECA region, especially for networking and making deals (and some social entertainment as well). 

I was struck by the numerous “mea culpas” of practitioners and investors alike in discussions about the problems facing the microfinance sector, such as overindebtedness, now starkly exposed by the financial crisis.  One microfinance manager from Bosnia shared with the audience–in a plenary session no less-that her institution had gotten caught up  in the wave of high growth and apparent infinite demand at the expense of carefully analyzing clients’ needs and capacity to repay. An investor confessed that they had sent inappropriate signals to practitioners, focusing on outreach numbers with insufficient attention to whether strong fundamentals where in place. 

With this kind of frank talk and a recommitment to the basics and keeping clients at the center, I am certain things will be looking up at next year’s MFC Conference. Click here to listen to participants from the conference.