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

Cost: Individual Rate USD 1,195; Corporate Rate USD 1,395 (includes acknowledgement of organization on website). Early Bird Discount of 30% by Friday 31 July using the code SR30.

Summary of Event: Experts will deconstruct issues and explore new strategies for success in the changed financial environment, including how to create effective partnerships, learn from best practices, and how to tap into new resources. The first two days will include plenaries, break out sessions and workshops. This will be followed by a third day of participant-led sessions.  

Background on Organizer: Kevin Jones of Social Capital Media (formerly Xigi Media) is the organizer and convener of SOCAP09. Mr Jones is the founder of Good Capital, a venture capital firm that invests in social enterprises [1]. Currently he is part of the team launching the first node of a USA Hub which will become a network of more than a dozen work spaces for social entrepreneurs in cities around the world.

Event Themes and Discussion Topics: The theme for the 2^nd annual event is ‘at the intersection of money and meaning’ and will focus on understanding how current trends and events will affect the future of social investing. Four themes will be the discussed – Working with the Government; Seeking Answers to Intractable Problems; Structure and Value of Social Enterprise; and Media and Technology.

There will be two pre-conference workshops

• BeDo Intrapreneurs – discuss the opportunities for social entrepreneurs and individuals who are leading corporations to consider ethical and environmental impact in their business strategies.
• Impact Management Workshop – learn about the metrics to track, how to track them, and how to communicate results.

Who Is Invited to Attend: Social innovators, investors, donors, and entrepreneurs from across the world.

About the Presenters: The conference will open with a keynote address by Sonal Shah, Director of the White House’s Office of Social Innovation and end with remarks from Kevin Jones, Convener of SOCAP09.  There will also be over 100 speakers at the event: http://www.socialcapitalmarkets.net/index.php?/speakers.html

Online Registration Address: https://www.reg-services.com/socialcapitalmedia/socap09/register2.php

Early Bird Discount of 30% by Friday, July 31st. Use the code SR30 to receive the discount.

For additional information, please contact:

Contact Name: Amy Benziger

Telephone/Location: +1 415 519 2748 California, USA

Email: socap09@gmail.com

Submit Your Event: http://microfinanceassociation.ning.com/events

Event Type: Conference

Event Starts (time and day): 10am 1 September 2009

Event Ends (time and day): 6pm 3 September 2009

Location: Fort Mason Center

Street: 38 Fort Mason

City/Town: San Francisco, CA, 94123

Website: http://www.socialcapitalmarkets.net/

Phone: +1 415 519 2748

Organized By: SOCAP09

By Sally Levy, Research Assistant

Bibliography:

[1] Good Capital: http://www.goodcap.net/

The Bangladesh Rural Advancement Committee (BRAC), an international non-government organization (NGO), will lead a partnership worth USD 15 million in Sierra Leone and Liberia to provide microfinance, healthcare and agricultural support [1, 2]. The Soros Economic Development Fund (SEDF), Open Society Initiative for West Africa (OSIWA), Omidyar Network and Humanity United are funding this project through a combination of grants and equity [1, 3, 4, 5, 6]. BRAC has opened 20 new microfinance branches since March 2009 in Sierra Leone and Liberia, with the first loan being issued in June, and aims to open 20 more by the end of the year [1]. During the two year pilot program it aims to provide loans to tens of thousands of women in these two West Africa countries [1]. Furthermore the project will provide agricultural supplies, training to farmers and 400 community based health volunteers [1].  

Fazle Hasan Abed, founder and chairperson of BRAC said “despite the many challenges these countries face, Liberia and Sierra Leone are uniquely positioned to become models for successful development in West Africa. We are committed to providing training and resources so that the poor, especially women, can unleash their capabilities as entrepreneurs and improve their livelihoods.” [1]

According to a 2004 United Nations Capital Development Fund (UNCDF) report on microfinance development in Liberia, the demand for credit from micro and small enterprises ranges from 62,000 to 82,000 customers with a combined loan volume of between USD 14 million to USD 19 million [12]. The number of customers reached at this time was 8,200 with a combined loan portfolio of less than USD 250,000 [12]. In January 2009 MicroCapital reported on the first commercial microfinance bank in Liberia to be granted a formal license, Access Bank Liberia (ABL) [11]. ABL aims to have an active client base of 27,000 and Total Assets of USD 38 million by 2013 and to mobilize funding through client savings [11].

Sierra Leone’s microfinance sector is growing, according to MITAF (Microfinance Investment and Technical Assistance Facility), an internationally-backed Sierra Leonean organization that supports the sector’s development. In 2003 it was estimated that of the 90,000 to 160,000 potential microfinance clients in Sierra Leone, fewer than 15,000 had access to financial services [13]. Today, over 40,000 people have access to financial services [13]. This increase can partly be attributed to Sierra Leone’s National Microfinance Policy unveiled in 2003.

BRAC started as a social relief project for victims of the 1970 cyclone and the 1972 Liberation War [2]. It shifted focus to long-term community development and today its largest program is its microfinance operations. It also has a variety of other development programs such as health centers that provide basic health services. At the end of 2008 BRAC had a microfinance loan portfolio of USD 649.4 million and over 6.3 million active borrowers, of which 95 percent are women [8]. This information was made available on the MIX Market, the microfinance information clearinghouse. The latest information available for Total Assets is at the end of 2007 where Total Assets were USD 619.4 million and Return on Assets was 1.46 percent with a Return on Equity of 6.07 percent [8].  For further information on BRAC, the book “Freedom from Want” by Ian Smillie, recently reviewed by MicroCapital, discusses its work in Afghanistan, Pakistan, Sri Lanka, Tanzania, Uganda, the Sudan, Sierra Leone, and Liberia [7].

New York based SEDF is a nonprofit private foundation established in 1997 that works with banks, MFIs, cooperative networks and social enterprise projects to extend financial services to low-income entrepreneurs [3]. Created by George Soros, it is part of a network of charitable foundations. With a traditional focus on Eastern and Central Europe, SEDF has extended its operations to 50 countries throughout Europe, Africa, Asia and Latin America. According to the latest information available, the 2006 Annual Report, SEDF has Total Assets of USD 139.6 million [9]. OSIWA is also part of the Soros Foundation and was established in 2000.  It works in 15 West African nations and supports civil society communities and advocates to governments on issues including governance, law, justice, human rights, public health and media [4]. According to its website, each year OSIWA disburses over USD 10 million in grants and advocacy support, with a particular focus on women and children in marginalized communities.

The Omidyar Network is a philanthropic investment firm established in 2004 by Pierre Omidyar, the founder of eBay, and his wife Pam [5]. It supports nonprofit and for profit projects, including microfinance initiatives, starting with an initial investment of at least USD 1 million. As at 31 December 2007 the Omidyar Network had USD 343 million in Total Assets [5].

Founded in 2005 by Pam Omidyar, Humanity United is an independent grant-making organization, committed to building a world where mass atrocities and modern-day slavery are no longer possible [6]. Originally Humanity United was an independent initiative of Omidyar Network and in July 2008 it was incorporated as a separate legal entity. Humanity United invests in for-profit ventures, non-profit organizations, and public agencies that advance its mission. Financial information was not made available on its website.

Make your comment at:  http://microfinanceassociation.ning.com/forum/topics/deals-in-microfinance-the

By Sally Levy, Research Assistant

Bibliography:

[1] Soros Economic Development Fund, Press Release, 22 July 2009 “New Partnership Jumpstarts Development in Sierra Leone and Liberia”, http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/07-22-2009/0005064334&EDATE=

[2] Bangladesh Rural Advancement Committee (BRAC): www.bracusa.org

[3] Soros Economic Development Fund (SEDF): www.sedfny.org

[4] The Open Society Initiative for West Africa (OSIWA): www.osiwa.org

[5] Omidyar Network: www.omidyar.com

[6] Humanity United: www.humanityunited.org

[7] MicroCapital Story, 15 April 2009, “Book Release: “Freedom From Want” by Ian Smillie Pays Homage to the Bangladesh Rural Advancement Committee (BRAC)”, http://www.microcapital.org/microcapital-story-book-release-”freedom-from-want”-by-ian-smillie-pays-homage-to-the-bangladesh-rural-advancement-committee-brac/

[8] MIX Market BRAC: http://www.mixmarket.org/mfi/brac/data

[9] SEDF 2006 Annual Report: http://www.sedfny.org/report/sedf_2006_report.pdf

[10] MIX Market Sierra Leone: http://www.mixmarket.org/mfi/indicators?country[0]=Sierra%20Leone

[11] MicroCapital Story, 27 January 2009, “Central Bank of Liberia (CBL) Grants Formal Banking License to Liberia’s First Commercial Microfinance Institution, Access Bank Liberia (ABL); ABL Starts Issuing Loans to the Public”, http://www.microcapital.org/microcapital-story-central-bank-of-liberia-cbl-grants-formal-banking-license-to-liberias-first-commercial-microfinance-institution-access-bank-liberia-abl-abl-starts-issuing-loans-to-the-publ/

[12] United Nations Capital Development Fund, 31 March 2004, “Microfinance Development in Liberia – an initial assessment  http://www.uncdf.org/english/microfinance/uploads/sector_assessments/UNCDF_liberiaAssessment.pdf

[13] Microfinance Investment and Technical Assistance Facility (MITAF) http://mitaf.esglobal.com/current/sierra_leone.htm

For discussion of this topic click here: http://microfinanceassociation.ning.com/forum/topics/papers-and-research-reviews

This paper presents the Afghanistan Research and Evaluation Unit’s (AREU) findings on the impact microcredit has had on existing informal credit systems and rural livelihoods. The development of microfinance in Afghanistan from subsidized government programs to the development of Microfinance Investment Support Facility for Afghanistan (MISFA) in 2003 is discussed. Since 2003 over USD 569 million in microloans has been disbursed to 440,000 clients through partners of MISFA. For a detailed discussion on MISFA refer to this MicroCapital story [1].  

The methods for collecting data from the three villages (Kabul, Bamiyan and Balkh) are presented. Semi-structured interviews were the primary method used. Focus groups with key village members also provided information. A four member research team included two men and two women to enable both men and women to be interviewed in each household. The research was conducted in 2007 and eight households (four microcredit users and four non-microcredit users) per village were selected. The three villages were chosen because of their rural location, large concentration of microcredit borrowers and a long history of credit use. The research team experienced challenges in all three villages. Local leaders asked for certain households to be selected and to control information provided to the researchers. Furthermore in some situations the men of the household disproved of the team talking to female household members.

The three villages are all located approximately 20 kilometers from town centers and close to a bazaar which provides opportunities for trading and selling products. Kabul village has 386 households, Bamiyan village has 140 households and Balkh contains approximately 300 households. Most villages are involved in farming, agricultural production, livestock breeding and casual labor livelihood activities. In all villages women predominantly work inside the home undertaking housekeeping, childcare and livestock raising, although some are involved in agricultural activities during the harvest season.

Four microfinance institutions (MFIs) operate in the villages with the aim of improving access to credit – Kabul MFI, Balkh MFI, Bamiyan MFI, Bamiyan MFI2. Group based lending is the predominant lending method with group members guaranteeing one another. Collateral is usually required and takes the form of savings or approval from a village leader. Group loans are usually offered to poorer clients with less collateral and loans are smaller than individual loans. Table 2 lists the products offered, eligibility criteria, interest rates and repayment terms for each MFI.

The findings from the study suggest that MFIs do not consider access to existing informal credit markets when entering a village and offering products. Furthermore, the data from the village household studies indicates that there is no lack of access to credit as informal credit systems exist in all villages and it is usually available without interest and with flexible repayment terms. However some households like to know repayment terms in advance as with informal credit the lender may request the full loan payment at any time. Table 3 shows that most households access both informal and formal credit and informal credit is sometimes used to repay microcredit loans.

This study found that microcredit can play a significant role in improving rural livelihoods in three ways – supporting shopkeepers to stock their shops; weakening possible exploitative informal credit relations between agricultural input suppliers and farmers; and offering alternatives to informal credit.

Finally, six recommendations are made: (1) make microfinance one part of an integrated rural development approach; (2) develop a dual approach to delivering microfinance in Afghanistan, incorporating both commercial and risk reduction aims; (3) expand microcredit to microfinance to address risk reduction as well as income growth; (4) expand performance monitoring to include indicators of client viability; (5) learn from informal credit systems; (6) understand how clients use credit to build or maintain relationships to avoid unintended consequences.

Make your comment at: http://microfinanceassociation.ning.com/forum/topics/papers-and-research-reviews

By Sally Levy, Research Assistant

Bibliography:

[1] MicroCapital Who’s Who in Microfinance: The Microfinance Investment Support Facility for Afghanistan (MISFA)

Centenary Bank of Uganda, a commercial bank with a focus on rural microfinance, has announced that it will increase its loans to farmers, further increasing its agricultural lending [1, 2]. The loans will enable farmers to buy tractors and other machinery up to a maximum of UGX 200 million (USD 95,000) [1]. Farmers owning 100 acres of land will be targeted. Recently the government declared in its 2009-10 budget that a UGX 30 billion (USD 14.2 million) loan guarantee will be made available to banks that extend loans to the agricultural sector this financial year [1]. The government believes this investment will help Uganda recover from the global recession as the agricultural sector employs 85 percent of the labor force. Centenary Bank will also seek to access part of the UGX 88 billion (EUR 30 million) credit facility that the European Investment Bank (EIB) is extending to several Ugandan commercial banks [1].  

Joseph Lutwama, general manager of Credit at Centenary Bank, said that the agriculture sector “is one area that many of us (bankers) have shied away from and yet it is an important factor that leads to development. We know there are high risks but if we evaluate our clients well, the risks can be mitigated, so we can help the farmers boost production.” [1]

The MIX Market, the microfinance information clearinghouse, currently lists 22 microfinance institutions (MFIs) in Uganda, many of which are cooperatives or credit unions [3]. However, the Association of Microfinance Institutions of Uganda (AMFIU), a national network of MFIs, has over 116 members and lists more than 1,000 MFIs and Savings and Credit Co-operative Organizations (SACCOs). AMFIU is an independent institution, formed out of a United Nations Development Program (UNDP) in 1996 and was created to lobby the government to provide a favorable policy environment for microfinance.

According to the ‘2008 Africa Microfinance Analysis and Benchmarking report’ Uganda is one of the top 10 African countries based on the number of borrowers (216,000) and penetration rates (0.7 percent) [6]. Furthermore funding was found to be heavily concentrated in East and West Africa, with 50 percent of the funding going to seven countries, including Uganda [6]. Further details of this report can be found in a Paper Wrap-Up published by MicroCapital [6].

Centenary Bank was established in 1983 as the Centenary Rural Development Trust and was registered as a commercial bank in 1993 [2]. It offers both savings and loan products to all sectors of the Ugandan economy from microenterprises to small and medium enterprises (SMEs) and also to corporate clients. The latest complete information available is as at 31 December 2007 on the MIX Market. At this time Total Assets were USD 200.8 million, with a Return on Assets of 5.37 percent and a Return on Equity of 36.44 percent [3]. The Gross Loan Portfolio was USD 113.9 million and the number of active borrowers was 81,346 [3].  Further information for these two indicators was available at the end of 2008 when the Gross Loan Portfolio increased to 151.3 million and active borrowers increased to 92,611 [3]. No rating information was available.

The current shareholders of Centenary Bank are the Catholic Dioceses (39 percent); the Uganda Catholic Secretariat (31 percent); Stichting Hivos-triodos Fonds, a fully owned subsidiary of the Dutch Investment Bank Triodos (18 percent); the International Solidarity for Development and Investment company (S.I.D.I), a French Investment Bank (11 percent); and individual shareholders (1 percent) [2, 4, 5].

Make your comment at: http://microfinanceassociation.ning.com/forum/topics/rural-microfinance

By Sally Levy, Research Assistant

Bibliography:

[1] Daily Monitor “Centenary Bank to Increase Lending to Agriculture Sector” by Walter Wafula, 21 July 2009, http://www.monitor.co.ug/artman/publish/business_power/Centenary_Bank_to_increase_lending_to_agriculture_sector_88376.shtml

[2] Centenary Bank: http://www.centenarybank.co.ug/index.php

[3] MIX Market Centenary Bank: http://www.mixmarket.org/mfi/centenary-bank/data

[4] International Solidarity for Development and Investment Company (S.I.D.I): http://www.sidi.fr/english.php

[5] Triodos Bank: http://www.triodos.com/com/

[6] MicroCapital Paper Wrap-Up, 19 February 2009, “Africa Microfinance Analysis and Benchmarking Report, 2008″, http://www.microcapital.org/microfinance-paper-wrap-up-”africa-microfinance-analysis-and-benchmarking-report-2008″-by-jennifer-isern-and-estelle-lahaye-of-cgap-and-audrey-linthorst-of-mix/

Faulu Kenya, the International Finance Corporation (IFC) and the Standard Chartered Bank of Kenya have entered into a partnership to finance Faulu operations in Kenya with a KES 450 million (USD 5.9 million) loan [1, 2, 3, 4]. The IFC, a World Bank member, will provide a partial credit guarantee for 80 percent of the loan from Standard Chartered Bank to Faulu, a local microfinance institution (MFI) [1, 5]. The partnership aims to help Faulu reach more Kenyans by broadening its products and services. The IFC and Standard Chartered Bank will also provide advisory support to Faulu in relation to its recent license to become the first deposit taking MFI in Kenya [1, 5].

Faulu Managing Director, Lydia Koros, said during the signing of the agreement that “our vision is to reach the un-banked population in Kenya who have previously not been served by the existing formal institutions [1]. Our partnership with IFC will enable Faulu to offer a wider range of products and services that better meet the needs of Kenya’s micro and small entrepreneurs” [5].

According to the second national survey on access to finance, FinAccess 2009, by the Financial Sector Deepening Trust (FSDT), only one in five Kenyans has a formal relationship with a financial institution [5]. Furthermore, 32.7% of the population still has no access to financial services [6]. The FSDT is an independent organization that supports the development of inclusive financial markets in Kenya and is supported by partners such as the UK Department for International Development (DFID) and the World Bank [5, 6]. For detailed information on this survey refer to this recent MicroCapital Story [7].

Faulu Kenya was founded in 1992 as a pilot micro-enterprise lending program of Food for the Hungry International (FHI), a relief and development organization based in the USA [2]. In 1999 it became a limited liability company and a 70 percent owned subsidiary of FHI [2]. The latest available information is on the MIX Market, the microfinance information clearinghouse, as at 31 December 2007.  Faulu had a Gross Loan Portfolio of USD 27.4 million and over 90,000 active borrowers [8]. Total Assets were USD 46.9 million with Return on Assets of 2.29 percent and a Return on Equity of 11.49 percent [8].

Created in 1956, the IFC seeks to foster sustainable economic growth by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments [3]. Within its Global Financial Markets sector, the IFC supports microfinance in order to promote successful and sustainable economies in low and middle income countries. The IFC provides direct and indirect investment and advisory services to the microfinance sector. Its focus is on creating and supporting commercially viable MFIs that can attract private capital thereby responding to unmet demand for micro loans. Furthermore it seeks to demonstrate the business case for commercial microfinance and also promote it as an asset class to private institutional investors. Earlier this year MicroCapital reported on the USD 514 million investments made by IFC in the MSME sector [9].

Make your comment at: http://microfinanceassociation.ning.com/forum/topics/deals-in-microfinance-the

By Sally Levy, Research Assistant

Bibliography:

[1] Capital Business “Shot in the arm for Faulu Kenya” by Michael Karanja, 20 May 2009, http://www.capitalfm.co.ke/business/Local/Shot-in-the-arm-for-Faulu-Kenya-2703.html

[2] Faulu Kenya: http://www.faulukenya.com/

[3] International Finance Corporation (IFC): http://www.ifc.org/

[4] Standard Chartered Bank Kenya: http://www.standardchartered.com/ke/en/

[5] International Finance Corporation Press Release “IFC Investment in Faulu Kenya to Bring Financial Services to More Kenyans”, 20 May 2009, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=A394F8479B368856852575F90049BFB6

[6] Financial Sector Deepening Trust: http://www.fsdkenya.org/news/index.html

[7] MicroCapital Story, 26 June 2009, “FinAccess 2009 Survey, Released by Financial Sector Deepening Kenya and Central Bank of Kenya, Shows African MFIs Fill Banking Void as New Laws Provide More Flexibility”, http://www.microcapital.org/microcapital-story-finaccess-2009-survey-released-by-financial-sector-deepening-kenya-and-central-bank-of-kenya-shows-african-mfis-fill-banking-void-as-new-laws-provide-more-flexibility/

[8] Mix Market Faulu Kenya: http://www.mixmarket.org/mfi/faulu-ken/data

[9] MicroCapital Story, 5 June 2009, “International Finance Corporation (IFC) Invests over $514m in Micro Small and Medium Enterprise (MSME) Initiatives During 2008″, http://www.microcapital.org/microcapital-story-international-finance-corporation-ifc-invests-over-514m-in-micro-small-and-medium-enterprise-msme-initiatives-during-2008/

The number of loans extended to clients by microfinance institutions (MFIs) declined during the first half of 2009 in Cambodia, according to an article in the Phnom Penh Post [1]. MFIs reported that they are being more cautious in their lending and clients are more nervous about taking out loans. Both factors are being attributed to the downturn in the global economy. The rate of non performing loans (NPLs) also increased during this period and the Cambodian Microfinance Association forecasts this to increase to three percent by the end of the year [1, 2]. A recent MicroCapital story discussed this trend and the increased credit risk rating that the Economist Intelligence Unit has assigned to Cambodia [9].  

One Cambodian MFI, AMRET, advised that they had planned to disburse USD 50 million in loans during the first six months of the year, but had only lent USD 33.5 million to 230,000 customers [1]. Furthermore they reported an NPL rate of 2.8 percent at the end of June 2009 compared to 0.08 percent at the end of December 2008 [1]. PRASAC, another MFI, reported a reduction of 13 percent in loan disbursements from USD 38 million to USD 33 million during the first half of 2008 [1]. During the same period PRASAC’s client base decreased from 100,000 to 87,700 and the NPL rate increased from 0.23 percent to 1.35 percent [1]. A third MFI, SATHAPANA has also experienced rising NPL rates from 0.2 percent at the end of 2008 to 1.7 percent in June 2009 [1]. Furthermore, loans to clients were a third below target at USD 22 million [1].

AMRET, previously EMT, was founded in 1991 as a French non-government organization (NGO) and in 2001 received its MFI license from the National Bank of Cambodia [3]. AMRET reports to the MIX Market, the microfinance information clearinghouse; however only information pertaining to the year ended 31 December 2007 is currently available. Information as at 31 December 2008 has been gathered from the audited statements found on AMRET’s website. Total Assets at this time were USD 69.7 million and Gross Loan Portfolio was USD 54.2 million [3]. The total number of borrowers at the end of 2008 was 226,262 with 83 percent being women [3]. In November 2008 AMRET was given an ‘A’ rating by MicroFinanza rating company [3].

In 1995 PRASAC was established and in 2004 it received an MFI license. At this time it registered as a private limited liability company and its current shareholders are BIO (Belgian Investment Company for Developing Countries), DCG (Dragon Capital Group), FMO (The Netherlands Development Finance Company), LOLC (Lanka ORIX LEASING Company Ltd), and Oikocredit [4]. The latest information available is from the MIX Market for the year ended 31 December 2007.  Total Assets were USD 37.5 million and the Gross Loan Portfolio was USD 34 million [5]. PRASAC had a Return on Assets of 6.04 percent and a Return on Equity of 15.53 percent [5]. There were 94,555 borrowers with an average loan balance of USD 359 [5]. Current rating information has not been made available.

SATHAPANA Limited was established in 1995 as Cambodia Community Building (CCB), and NGO, and in 2003 received its MFI license. The most complete information available on the MIX Market is for the year ended 31 December 2007 where Total Assets were USD 23.9 million [7]. At this time the Gross Loan Portfolio was USD 22.5 million and the number of active borrowers was 24,024 [7]. SATHAPANA had a Return on Assets of 6.26 percent and a Return on Equity of 31.06 percent for the same period. Rating information is not available. The current shareholders of SATHAPANA are CCB NGO (23.41 percent), ShoreCap International Limited (33.58 percent), Cambodian Entrepreneur Building Employee Company (CEBEC) (6.07 percent), FMO (18.47 percent) and Triodos (18.47 percent) [6].

The Cambodian Microfinance Association (CMA) was established in 2004 as an NGO [2]. It seeks to ensure all Cambodians receive financial services by supporting microfinance organizations to create networks and communicate with local and international donors. It reports consolidated information for 18 MFIs which includes the three MFIs discussed above. At the end of March 2009 CMA reported Total Loans Outstanding for the 18 MFIs of USD 275 million with over 828,000 borrowers and 105,000 savers [8]. AMRET is the largest MFI based on Loans Outstanding, followed closely by PRASAC and then SATHAPANA. SATHAPANA has the most savers of any MFI operating in Cambodia [8]. Several Cambodian MFIs have also received awards for financial transparency as awarded by the Consultative Group to Assist the Poor (CCAP) and reported by MicroCapital earlier this year [10].

Make your comment at: http://microfinanceassociation.ning.com/forum/topics/crash-of-2008-and-microfinance

By Sally Levy, Research Assistant

Bibliography:

[1] The Phnom Penh Post “MFIs See Lending Growth Dip” by Nguon Sovan, 13 July 2009, http://www.phnompenhpost.com/index.php/2009071327096/Business/mfis-see-lending-growth-dip.html

[2] Cambodian Microfinance Association: http://www.cma-network.org/

[3] AMRET: http://www.amret.com.kh

[4] PRASAC Limited: http://www.prasac.com.kh

[5] MIX Market PRASAC: http://www.mixmarket.org/en/demand/demand.show.profile.asp?ett=1042&

[6] SATHAPANA Limited: http://www.sathapana.com

[7] MIX Market SATHAPANA: http://www.mixmarket.org/en/demand/demand.show.profile.asp?ett=1543&

[8] Cambodia Microfinance Association March 2009 information: http://www.cma-network.org/information.htm#

[9] MicroCapital Story, 19 May 2009: Cambodian Microfinance Institutions’ Non-Performing Loans Rise Again http://www.microcapital.org/microcapital-story-cambodian-microfinance-institutions’-non-performing-loans-rise-again/

[10] MicroCapital Story, 2 April 2009: Cambodian Microfinance Lenders See Number of Non-Performing Loans Rising Above 1 Percent in 2009 http://www.microcapital.org/microcapital-story-cambodian-microfinance-lenders-see-number-of-non-performing-loans-rising-above-1-percent-in-2009/

Microfinance in Afghanistan is provided exclusively through MISFA. As at the end of February 2009, 15 microfinance institutions (MFIs) received funding from MISFA and were the implementing partners for microfinance in the country. They provide loans in 24 of the 34 provinces, have 286 branches, and have served 439,821 clients with either loans or savings products to the end of February 2009. The cumulative Gross Loan Portfolio for these 15 MFIs was USD 103.8 million for the same period. The average outstanding loan balance was USD 306 and 62 percent of the clients were women. In addition the MFIs have created jobs by providing employment to 4,491 people. The MIX Market, the microfinance information clearinghouse, provides financial and other details on 14 of the 15 MFIs. In late 2006 MISFA partnered with five banks to provide small and medium enterprise (SME) loans. As at the end of February 2009, 641 loans had been disbursed for a total value of USD 18.1 million. Loans range from USD 3,000 to USD 300,000.

MISFA was established in 2003 to promote donor and government coordination in the microfinance arena and build the Afghanistan microfinance sector. In 2006 MISFA became a limited liability non-profit company owned by the Ministry of Finance of the Islamic Republic of Afghanistan. Organizations including the Government of Afghanistan, Canadian International Development Agency (CIDA), UK Department for International Development (DFID), World Bank, Consultative Group to Assist the Poor (CGAP), USAID, and the Australian Agency for International Development (AusAID) all provide funding to MISFA. For further information on the creation of MISFA refer to this MicroCapital article.

The IFAD is a specialized agency of the United Nations and was established in 1977 as an international financial institution following the food crisis in Africa. Its mission is to enable poor rural people to overcome poverty in developing countries by working with governments, non-government organizations (NGOs) and other partners to increase access to financial services, technology and other resources. Loans are provided at highly concessional, intermediate and ordinary terms, depending upon the borrower’s per capital GNI (gross national income). Grants are limited to 10 percent of the total loan and grant program. The IFAD currently works in 115 countries. Since its inception, IFAD has invested USD 10.6 billion in 796 programs and projects that have reached over 330 million women and men. As at 31 December 2008 the IFAD had Total Assets of USD 7.2 billion.

Sally Levy, Research Assistant

Additional Resources:

IFAD Press Release: IFAD provides US$23.89 million to Afghanistan for rural microfinance and livestock

MicroCapital Story: Islamic Microfinance – What Next? Nigeria Promotes “Non-Interest” Banking

MicroCapital Who’s Who in Microfinance: The Microfinance Investment Support Facility for Afghanistan (MISFA)

MISFA: Home

IFAD: Home

MIX Market: Afghanistan

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

Cost: No details regarding cost have been provided.

Summary of Event: This event will focus on recommending strategies to boost economic growth in Africa with the view to building strong and inclusive rural financing systems that create employment, wealth and increase income of the poor in rural areas.

Background on Organizer: AFMIN was established in 2000 and is an association of microfinance networks throughout Africa. It consists of 22 country-level networks of microfinance institutions (MFIs) in East, West, Central and Southern Africa. The networks in these 22 countries collectively have 1,118 MFI members who reach over 13 million borrowers and 9.7 million savers, as at the end of December 2007.  These MFIs had cumulative loans outstanding of USD 2 billion and net savings of USD 1.2 billion for the same period.

The mission of the AFMIN is to contribute to the development and provision of effective and sustainable financial services to low income population in Africa, by supporting country-level networks and their member MFIs. AFMIN’s core programs include capacity building for members, advocacy and policy change, performance monitoring and benchmarking, research, information dissemination and knowledge building, and network management.

Event Themes and Discussion Topics: The theme for this conference is ‘Building rural financing systems in Africa: How microfinance institutions might meet the diverse demand for financial services in rural areas?’  There will be a focus on best practices and innovative ideas in rural financing systems, panel discussions and small group discussions around the following topics:

• Lessons learnt in agricultural and rural microfinance including speakers from the International Fund for Agricultural Development (IFAD), United Nations Food for Agriculture Organization (FAO), African Development Bank (AFDB), African Rural Agricultural Credit Association (AFRACA), Asian Development Bank (ADB)
• Innovations for rural areas: Developing the livestock sector (Mercy Corps in Azerbaijan), Mobile Banking, Weather insurance pilot scheme (Malawi), Accessing Credit and Markets, Equity Building Society of Kenya, Emerging Markets Group (USAID Kenya), Rural finance and HIV-AIDS (ECI Africa), Managing risks and designing products for agricultural microfinance (IFAD), Sector Specific Business Reform (TechnoServe, Coffee Industry in Tanzania)
• Building inclusive rural financing systems: Issues, challenges and strategies which will include speakers from the UNDP/UNCDF, World Bank, African Development Bank, Asian Development Bank
• Agricultural Value Chain financing
• Roles of key actors in building rural financing systems: policy makers, development partners, private sector organizations, banks, microfinance institutions, country-level networks
• Models to support rural Development
• Fostering business and financial services in rural areas.

Who Is Invited to Attend: Everybody

About the Presenters: Specific details of the speakers have not been made available

Online Registration Address: http://www.afminetwork.org/online.html

For additional information, please contact:

• Contact Name: Davy Serge Azakpame (AFMIN Executive Director)
• Telephone/Location: (229) 21 30 74 41 / Cotonou, Benin
• Email: davy.serge@afminetwork.org

Submit Your Event: http://microfinanceassociation.ning.com/events

Event Type: Conference

Event Starts (time and day): 16 November 2009

Event Ends (time and day): 20 November 2009

Location: Dakar, Senegal, West Africa

Street: The exact details have not been provided.

City/Town: The exact details have not been provided.

Website: http://www.afminetwork.org/events_8th-annual-conference-and-general-assembly_3.html

Phone: (229) 21 30 74 41

Organized By: Africa Microfinance Network (AFMIN)

By Sally Levy, Research Assistant

72 Filipino MFIs report their latest financial and other data to the MIX Market, the microfinance information clearinghouse. Cumulatively these MFIs have 2.1 million active borrowers with a Gross Loan Portfolio of USD 411.5 million as indicated by their most recent data on the MIX. For some general information about how the global credit crisis is affecting the MFI sector, including the Philippines, refer to this MicroCapital Paper Wrap-Up. A recent MicroCapital story also describes how MFIs in the Philippines are seeking to attract foreign investment by obtaining a rating from international ratings firms.

By Sally Levy, Research Assistant

Additional Resources:

Symbiotics: Philippines: Micro-finance Sector Issues P161 Billion (3.3 USD billion) in Loans to Boost Job Creation

National Anti Poverty Commission: Home

MicroCapital Story: Microfinance firms in the Philippines take to ratings

MicroCapital Paper Wrap-Up: Will the Bottom of the Pyramid Hit Bottom? The Effects of the Global Credit Crisis on the Microfinance Sector, by the United States Agency for International Development (USAID)

MIX Market: Philippines

According to the MIX Market, the microfinance information clearinghouse, six microfinance organizations operate in Albania, including ProCredit Bank.  The consolidated Gross Loan Portfolio of these six organizations is USD 298.2 million, based on latest available financial information.

ProCredit Bank Albania is part of the wider network of ProCredit banks which exist in 22 countries in Southeast Europe, Africa and Latin America. It was founded in 1995 as the ‘Foundation for Enterprise Finance and Development’ (FEFAD) with 100 percent of its share capital provided by KfW. The current shareholders are ProCredit Holding, the parent company of the ProCredit group, which owns 80 percent, with the German Commerzbank holding the balance of shares. A recent MicroCapital Paper Wrap-Up listed ProCredit Holding as one of the top 10 microfinance investment vehicles with Assets Under Management of USD 1.019 billion in 2008.

For the year ended 31 December 2007 ProCredit had 32,581 active borrowers and 198,668 savers. Its Total Assets were USD 354.7 million with a Gross Loan Portfolio of USD 161.5 million. Return on Assets and Return on Equity were 1.6 percent and 20.53 percent respectively. Information on ProCredit Albania’s websites details that it received a B+ rating with a ‘stable’ outlook from global rating agency Fitch Ratings, in April 2009.

EFSE was established in 2005 by the German Development Bank KfW Entwicklungsbank. Since then EFSE has committed over EUR 600 million to 55 commercial banks, microfinance institutions and non-bank financial institutions in Southeast Europe. This has facilitated EUR 835 million towards 166,000 loans to micro, small and medium enterprises (MSMEs) and low-income private households as of 31 March 2009. According to the 2007 EFSE Annual Development Impact Study 2007 this has contributed to the creation of 245,000 jobs. As at the end of March 2009 EFSE had USD 706.3 million in Fund assets of which USD 393.2 million were allocated towards microfinance investments. This recent MicroCapital story details a recent investment by EFSE in Serbia for EUR 20 million to expand MSME activities.

By Sally Levy, Research Assistant

Additional Resources:

ProCredit Bank Albania: ProCredit Bank for the first time in Albania offers loan for reducing of energy use

European Fund for Southeast Europe (EFSE): EFSE provides EUR 5 million to ProCredit Bank Albania

MIX Market: ProCredit Bank Albania

MicroCapital Story: European Fund for Southeast Europe (EFSE) Provides EUR 20m Loan to Serbia’s Komercijalna Banka

MicroCapital Paper Wrap-Up: Microfinance Funds Continue to Grow Despite the Crisis, by the Consultative Group to Assist the Poor (CGAP)