The global flow of foreign investments has reached record levels in recent years, expanding at a faster rate than trade and serving as the most important form of capital inflow into developing countries. Foreign investors have also played an important role in microfinance; it is estimated that foreign investors have allocated roughly US$1.9 billion in commercial and quasi-commercial investment in microfinance institutions, filling an important market gap in many developing countries.

However, while foreign investment can be very helpful for the financial sustainability of microfinance institutions, it also poses challenges. For example, it can make MFIs vulnerable to exchange rate fluctuations.

These articles are about the way microfinance institutions can attract foreign investment, and make the best use of it. We have also highlighted the major Microfinance Investment Funds.