Microfinance institutions’ operational self-sufficiency in sub-Saharan Africa: empirical evidence

Abstract The topic of financial sustainability in microfinance institutions has become more important as an increasing number Microfinance Institutions (MFIs) seek operational self-sufficiency, which translates into sustainability. This study aims to identify factors that drive self-sufficiency institutions. To accomplish this, 416 MFIs sub-Saharan Africa are studied and several drivers for empirically analyzed. Results indicate these return on assets, the ratios total expenses/assets revenues/assets. results imply should encourage cost-management measures. They also reveal there may not be a significant tradeoff outreach. These findings will enable worldwide sharpen their institutional capabilities achieve provide policymakers with focused tools assist industry development.