Despite its potential to positively impact the livelihoods of our peoples, micro and small business finance is underdeveloped in the Caribbean and lags considerably behind that of our counterparts in Latin America and the Dominican Republic. The pace of the development of the Caribbean micro-finance industry is impacted by the small scale of operations due to smaller markets, lower formality levels, poor loan recovery and high delinquency rates.
Building a sustainable network among micro-finance stakeholders has become a critical step for the development of micro-finance movement in the region. This was underscored at the Caribbean Micro-finance Forum II (September 2010), where regional stakeholders were united in their acknowledgement of “the need to establish a network if the sector is to grow”.
This need propelled the launch of the Caribbean Micro-finance Alliance (CMFA) in January 2011. The CMFA is a network of Micro-finance Practitioners in the Caribbean. Domiciled in Kingston, Jamaica, the CMFA was formed under the auspices of the Multilateral Investment Fund (MIF), a member of the IDB Group.