According to an International Federation of Red Cross and Red Crescent Societies (IFRC) four-year tsunami progress report published in July 2008, many humanitarian assistance programs aimed at helping tsunami victims along Sri Lanka’s coastline to rebuild homes and restore livelihoods have failed to bring lasting benefits to the poorest and hardest hit areas, citing lack of access to loans and financial services as one of their main obstacles. Continue Reading »
MICROCAPITAL STORY: The International Federation of Red Cross and Red Crescent Societies (IFRC) Cites Lack of Loans and Financial Services as Main Obstacles in Bringing Lasting Benefits to Tsunami Victims in Sri Lanka
Written by Suresh de Mel, David McKenzie and Christopher Woodruff of the World Bank Development Research Group Trade Team, this report is based on a collection of surveys conducted in Sri Lanka between April 2005 and October 2007 and was published in May 2008 as a 35 page document available here.
This report uses a series of surveys conducted in Sri Lanka by the World Bank Development Research Group Trade Team to examine the effectiveness of micro-credit as a source of employment generation in developing countries, questioning whether or not the informal sector is a temporary substitute for wage-work or a stepping stone for entrepreneurs with growth potential. The surveys compare the characteristics of self-employed workers without employees, wage workers and owners of larger businesses with employees. Continue Reading »
Written by Simeon Djankov, Pedro Miranda, Enrique Seira and Siddharth Sharma of the World Bank Private Sector Development Department Enterprise Analysis Unit, this paper was published in June 2008 as a 27 page document available here.
Based on a nationwide survey of 5,000 Mexican households, this report investigates why so few people in the region have saving’s accounts. The survey sample included clients of savings and credit cooperatives and unbanked households living within the same communities. Continue Reading »
In a speech given at the 2008 Global Summit of Women in Ha Noi, Vietnam, US Treasurer Anna Escobedo Cabral emphasized the need for more opportunities for women in Vietnam to access microfinance, citing the importance of microcredit in poverty reduction in Asian countries. The US Treasurer stated that since Vietnamese women played an important role in the household economy, credit would help women to be more active players. Continue Reading »
PAPER WRAP-UP: Microfinance Insights: Human Resource Challenges and Solutions in Microfinance: Survey Report
This report is based on an online survey entitled “Human Resources Challenges and Solutions” conducted from February through March 2008 by Microfinance Insights magazine, a quarterly publication produced by Intellecap, an India-based program development and service provider for microfinance institutions. The Report was published in April 2008 as a 19-page document available here.
Microfinance Insights magazine ran an online survey on Human Resources Challenges and Solutions from February through March 2008. 90 respondents from 31 countries participated in the survey. The majority of the respondents (71 percent) were from microfinance institutions including rural banks, large financial firms, and microcredit-focused NGOs. The remaining respondents were from microfinance-focused consulting firms. Continue Reading »
PAPER WRAP-UP: Microfinance Investments in Quality at Private Clinics in Uganda: A Case-Control Study by Eric E. Seiber and Amara L. Robinson
Written by Eric E. Seiber of the College of Public Health at Ohio State University and Amara L. Robinson of BioMed Ltd., and based on research conducted by BioMed Central Ltd. (BMC), published October 18, 2007 as a 12-page document available here.
This report examines the potential for small private-sector health care providers including pharmacists, nurses, midwives and doctors to improve access to quality preventive and curative health services in Uganda with the aid of micro-credit and business training. Continue Reading »
MICROCAPITAL STORY: Ugandan Microfinance Minister Emphasizes Provision of Agricultural Finance in the Region
In a closing speech at the annual general meeting of the Association of Microfinance Institutions of Uganda (AMFIU), Ugandan Minister of Microfinance, General Salim Saleh stated “Provision of agricultural finance is the actual bullet that will kill poverty“. The minister continued that before financial provision could aid the agricultural sector, the National Agricultural Advisory Services (NAADS) should provide advice and technical assistance to farmers to prevent crop failures and other problems that could cause delay or failure of loan payments, emphasizing “appropriate funding to worthwhile agricultural projects.” Continue Reading »
MICROCAPITAL STORY: IFC and Bai-Tushum Microlending Institution Facilitate Leasing Services in Kyrgyz Republic
The World Bank’s International Finance Corporation (IFC) together with the government of the Kyrgyz Republic has developed an amendment to the country’s tax code pertaining to value added tax (VAT) in an effort to expand the leasing sector. Continue Reading »
The microfinance sector in Zambia is currently facing the after effects of default in government funded and privately run microfinance programs. The market suffers from high levels of poverty, a huge HIV/AIDS epidemic, and the planned regulation of microfinance activities by the central bank. The microfinance sector in Zambia is still in its developmental stage. Continue Reading »
This document was produced by the Netherlands Water Partnership (NWP) with contributing editors Catarina Fonseca, Marieke Adank, Deirdre Casella and Martine Jeths, in cooperation with the International Water and Sanitation Center (IRC) and contributing editors Peter van der Linde and Bianca Dijkshoorn. Originally published in October 2007, this 33-page document is available here.
This paper was published as an introduction to the use of microfinance services in developing sustainable infrastructure to provide drinking water, sanitation and hygiene services to poor communities in developing countries. Water supply and sanitation activities are not traditionally targeted by microfinance institutions because they are not seen as income-generating businesses. Recently, more and more microfinance institutions argue that sustainable businesses can be established in water supply and sanitation projects. Continue Reading »
MICROCAPITAL STORY: Oliver Wyman Management Consulting Firm Announces Strategic Alliance with Microfinance Institution, Kiva Microfund
International management consulting firm Oliver Wyman has announced a strategic alliance with Kiva.org to support the microfinance institution’s expansion. Through Oliver Wyman’s Non-Profit Fellowship Program, consultants have previously helped build and scale Kiva’s current operations. The newly established Oliver Wyman-Kiva externship program is an extension of their fellowship program, promoting sustainable development through micro-lending. Continue Reading »
MICROCAPITAL STORY: Triodos-Doen and the Hivos-Triodos Fund Invests $1.3M in HUMO Micro Lending Fund, Alter Modus Montenegro and Kazakhstan Microcredit Organization Bereke
The Consultative Group to Assist the Poor (CGAP) recently reported the Triodos-Doen Foundation and Hivos-Triodos Fund of the Netherlands invested USD 1.3 million in three Eastern European and Central Asian (EAC) microfinance institutions. Triodos-Doen invested loans of USD 251,000 in Micro Lending Fund HUMO of Tajikstan and USD 737,000 in Alter Modus in Montenegro. Hivos-Triodos invested USD 301,000 in loans to Kazakhstan Microcredit Organization Bereke. Continue Reading »
MICROCAPITAL STORY: Triodos-Doen Foundation, Triodos Fair Share Fund and Hivos-Triodos Invest a Total of $7.5M in Latin American Microfinance Institutions: Organización de Desarollo Empresarial Feminino (ODEF OPDF), EPDYME Edyficar, Fondo Financiero Privado para el Fomento a Iniciativas Economicas (FIE FIE) and FIE Gran Poder S.A.
The Consultative Group to Assist the Poor (CGAP) recently reported Triodos-Doen Foundation, Triodos Fair Share Fund and Hivos-Triodos Fund of the Netherlands invested USD 7.5 million in four Latin American microfinance institutions. Organización de Desarollo Empresarial Feminino (ODEF OPDF) of Honduras received a loan investment of USD 2 million divided between the Triodos Fair Share Fund and the Hivos-Triodos fund. The Triodos Fair Share Fund invested USD 2.5 million each in loans to EPDYME Edyficar of Peru and and Fondo Financiero Privado para el Fomento a Iniciativas Economicas (FIE FIE) of Bolivia. FIE Gran Poder S.A. based in Buenos Aires, Argentina was granted a loan of USD 528,000 by the Triodos-Doen Foundation. Continue Reading »
MICROCAPITAL STORY: Oikocredit of the Netherlands Invests $5m in Central American Microfinance Institutions: Asociación Pueblos en Accion Comunitaria (APAC), Cooperativa Mixta Mujeres Unidas Limitadas (COMIXMUL), Financiera Summa, S.A., Asociación Civil Guatemalteca Para el Desarrollo Integral (ASDESARROLLO), Fundación Hondureña para el Desarrollo de la Microempresa (FUNDAHMICRO), Asociación Cooperativa Dimas Rodriguez de R.L, Agencia de Desarrollo Economico Local (ADEL)
The Consultative Group to Assist the Poor (CGAP) recently reported Oikocredit, a Dutch cooperative investment fund, invested nearly USD 5 million in seven microfinance institutions in Central America. Asociación Pueblos en Accion Comunitaria (APAC) of Nicaragua, Cooperativa Mixta Mujeres Unidas Limitadas (COMIXMUL) of Honduras and Financiera Summa, S.A., of Guatemala received the largest loan investments of USD 1 million each. Microfinance institution Asociación Civil Guatemalteca Para el Desarrollo Integral (ASDESARROLLO) of Guatemala received a loan of USD 725,000, and Fundación Hondureña para el Desarrollo de la Microempresa (FUNDAHMICRO) of Honduras was loaned USD 700,000 by the Dutch fund. El Salvadorian institutions, Asociación Cooperativa Dimas Rodriguez de R.L and Agencia de Desarrollo Economico Local (ADEL) were given USD 200,000 and 329,000 respectively. Continue Reading »
MICROCAPITAL STORY: Oikocredit of the Netherlands Invests $3.9m in Three South American Microfinance Institutions: Edpyme Nueva, Asociación Benéfica PRISMA, and Cooperativa de Ahorro y Credito 23 de Julio Ltd.
The Consultative Group to Assist the Poor (CGAP) recently reported Oikocredit, a Dutch cooperative investment fund, invested nearly USD 3.9 million in three microfinance institutions in South America. Cooperativa de Ahorro y Credito 23 de Julio Ltd. of Ecuador received a loan investment of 1.5 million. Peruvian microfinance institutions Asociación Benéfica PRISMA and Edpyme Nueva Vision received loans investments of USD 1.3 million and USD 1.1 million respectively. Continue Reading »
MICROCAPITAL STORY: ACCION International President, Maria Otero, Awarded Ellis Island Medal of Honor for Pioneering Work in Microfinance
ACCION International President and CEO, Maria Otero, was awarded the Ellis Island Medal of Honor by the The National Ethnic Coalition of Organizations (NECO) in recognition of her contribution to sustainable development in the global microfinance sector. Continue Reading »
The Consultative Group to Assist the Poor (CGAP) reports that currently in Malawi, approximately 90 percent of the population is unbanked. Though there is large demand for financial services, the Malawian microfinance sector suffers from lack of financial resources, outreach, and sustainability. A very weak physical infrastructure is another huge obstacle. Continue Reading »
MICROCAPITAL STORY: Microfinance Division of Zurich Financial Services Group Launches Microinsurance Research Project in China
Zurich Financial Services Group (Zurich) announced in April their plans to carry out a research project on microinsurance with Nan Kai University’s Department of Risk Management and Insurance (DRMI) in Tianjin, focusing on the demand for microinsurance products in China. This project is part of Zurich’s efforts to expand their insurance services offered in China to the under-privileged population segment. Continue Reading »