
Comparison of Operational Efficiency of MFIs in South Asia and East Africa
This study is a comparison of the operational efficiency of microfinance institutions in South Asia and East Africa. Three countries were included from each region (Pakistan, India, Bangladesh from South Asia and Kenya, Rwanda, and Uganda from East Africa). Data Envelopment Analysis (DEA) is used to determine efficiency of microfinance institutions in the selected countries for three years from 2018 to 2020, using input orientation under Constant Return Scale (Technical Efficiency) and Variable Return Scale (Pure Technical Efficiency). Efficiency is measured in terms of the transformation of funds (Intermediation approach) and the productivity of financial services provided by microfinance institutions (Production approach). This study's results reveal that all selected countries are efficient under both methods (Intermediation and Production). However, microfinance in India is found to have weak efficiency in the intermediate approach, and Kenya found to have low efficiency in the production approach.