SystemSpecs, a software development firm founded in 1991 and headquartered in Lagos, Nigeria [1], and Maxim-Pro, a Nigerian financial technology firm [2], recently released a joint memorandum of understanding (MOU) expressing their commitment to the development of a technological infrastructure for Nigerian microfinance banks [3]. In March 2010, the two companies released Remita, an e-payment service for microfinance banks [4]. The service is currently used by 125 microfinance banks in Nigeria. A September 2008 World Bank report documented 840 microfinance institutions in Nigeria [5]. Of these, only seven have reported to MIXMarket, the microfinance information clearinghouse, for 2008 [6]. Continue Reading »

The Pakistani government is currently reviewing applications for microfinance banking licenses from large retailers and mobile network operators. Syed Salim Raza, Governor of the State Bank of Pakistan, claims that his country is the first in South Asia to issue these kinds of licenses [1]. He elaborated on the scale and evolution of the branchless banking system at the April 17, 2010, Branchless Banking Conference [2]. Continue Reading »

LuxFLAG, a microfinance institution vehicle (MIV) certification organization founded in 2006, has recertified eight MIVs while adding a ninth, BlueOrchard Fund – Microfinance Fund for US Investors. The label is applied to MIVs that invest directly or indirectly in the microfinance sector and are deemed reputable by LuxFLAG and receiving a basic level of financial supervision from their home country. The nine labeled firms manage a total of USD 2.24 billion. LuxFLAG reports an unspecified number of applicants for 2010 [1]. Continue Reading »

Mathias Omeh, chairman of Nsukka Microfinance Bank, beat out Olutayo Adenekan, chairman of All Stars Microfinance Microfinance Bank, to become the National President of the Nigerian National Association of Microfinance Banks (NAMB) by a vote of 288 to 202 [1]. Upon election, Mr Omeh directly addressed waning public trust in microfinance banks. Continue Reading »

Compartamos Banco, a Mexican microfinance bank founded in 1990, is in the process of finding a Latin American microfinance lender to acquire. Fernando Alvarez Toca, the Chief Executive Officer of Compartamos Banco, stated that his company is planning to acquire a Latin American company in accordance with their plan for rapid expansion. Alvarez Toca names Colombia, Peru and Brazil as the primary countries they are investigating [1]. Compartamos Banco has been pursuing this avenue since November of 2009 [2]. Continue Reading »

Event Name: “Microfinance Principles – Summer Academy”

Event Date: July 15 to July 17, 2010

Event Location: London, England

Event Website: http://www.eventbrite.com/event/645214855

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

Cost: Tuition is GBP 750 (USD 1,160) and lodging is GBP 250 (USD 387) Continue Reading »

In an interview with Vikash Humar, Editor in Chief of Microfinance Focus, Mohammad Yunus, founder of Grameen Bank, blasted profit-seeking microfinance institutions (MFIs). He likened these institutions, which he defined as those who charge more than 15 percent plus the cost of funds, to the loan sharks that necessitated the foundation Grameen. While reluctant to name names, Mr Yunus offered Compartamos Banco, a Mexican microfinance bank founded in 1990, as an example of one of these firms. Mr Yunus additionally spoke out against IPOs by MFIs, such as Compartamos Banco and SKS Microfinance, a microfinance institution (MFI), launched in 1998, which caters to women clients in India. Continue Reading »

The Central Bank of Nigeria (CBN) announced plans to repeal universal banking by September of 2011. Universal banking, introduced to Nigeria in 1999, allows a bank to function in all sectors under a single body of regulation [1]. The CBN would revert to specialized banking, its pre-1999 regulation structure, where banks are licensed to act in a single sector. This new structure would include microfinance-specialized banks as their own category. Samuel Oni, CBN Director of Banking Supervision, said the regulatory reform would reduce operating risk and bring the CBN closer in line with the International Financial Reporting Standards [2], a body of best practices maintained by the International Accounting Standards Board. Continue Reading »

Event Name: MFTransparency Workshop on Transparent Pricing in Bolivia

Event Dates and Locations: May 4, 2010, in La Paz, Bolivia; May 5, 2010, in Santa Cruz, Bolivia; May 6, 2010, in La Paz, Bolivia

Event Website: http://www.mftransparency.org/pages/transparent-pricing-initiative-in-bolivia

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

Cost: Free Continue Reading »

The United States Agency for International Development (USAID), an federal agency that provides global economic and humanitarian assistance, has announced a USD 4.45 million grant to USAID-Tijara, a microfinance program based in Iraq [1]. USAID founded USAID-Tijara, which means “trade” in Arabic [2], in 2007 as a five-year program intended to combat unemployment [3]. Three years into the program, national unemployment remains at 30 percent. Continue Reading »

MICROFINANCE EVENT: “MFTransparency Workshops on Transparent Pricing in Ecuador” April 27 to April 29, 2010

Event Name: MFTransparency Workshop on Transparent Pricing in Ecuador

Event Dates and Locations: April 27, 2010, in Quito, Ecuador; April 28, 2010, in Ambato,

Ecuador; April 29, 2010, in Guyaquil, Ecuador

Event Website: http://www.mftransparency.org/pages/transparent-pricing-initiative-in-ec…

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

Cost: Free Continue Reading »

Zafén, a partnership of four organizations from three countries, is launching an internet portal to collect donations and fund microloans that will be disbursed to businesses and organizations in Haiti that Zafén has determined will improve the community [1]. The Vincentian Family, a non-profit charitable network operating in more than 135 countries, is funding the venture with members of the Chicago-based DePaul University faculty developing the website and lending criteria. Fonkoze, a Haitian microfinance institution established in 1995 [2], and The Haitian Hometown Associations Resource Group, an international organization representing the Haitian diaspora, are acting as advisors to the program [3]. Continue Reading »

Vimo SEWA, an Indian insurance cooperative owned and run by women working in the informal sector, will be advising the implementation of a similar microinsurance program in Namibia [1]. The effort is part of the Namibian government’s Vision 2030 initiative, a series of developmental policy goals enacted in 2004 to be achieved by the year 2030 [2]. As part of Vision 2030, the Namibian government has demonstrated commitment to other forms of social insurance by enacting monthly pensions to elderly and disabled citizens [1]. Additionally, the Namibian government is funding Vimo SEWA during the advisory process [1].

Continue Reading »

Event Name: African Mobile Micro-Finance & M-Remittances Summit

Event Date: May 10 – May 11, 2010

Event Location: Ikoyi, Lagos

Event Website: http://www.bspmediagroup.com/event.php?EID=58

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events Continue Reading »

Doug Munatsi, chief executive of BancABC, a commercial bank with limited microfinance activity, has postponed the extension of microfinance operations from Zambia to Zimbabwe citing the level of government salaries there [1]. Government workers in Zimbabwe earn between USD 122 and USD 206 per month and have been striking for a 400 percent wage increase since February 2010 [2]. Continue Reading »