A recent article from the Inter Press Service (IPS), an independent news agency focused on the developing world, reveals Russia’s micro-entrepreneurs and micro-businesses are not receiving the capital they need to grow. The article indicates microfinance institutions (MFIs) are only supplying 15 percent of an estimated USD 8 billion in micro-business demand. Furthermore, formal banking institutions are supplying just 20 percent of the USD 22 billion needed by small and medium-sized enterprises. Continue Reading »

The Pakistan Poverty Alleviation Fund (PPAF), a Pakistani organization dedicated to assisting poor and rural communities in Pakistan, and Citi Foundation, a philanthropic outreach arm of Citigroup, announced they will hold for the third consecutive year an awards program dedicated to micro-entrepreneurship. The program, “Citi-PPAF Microentrepreneurship Awards Programme 2007,” will recognize the efforts made by micro-entrepreneurs to improve the quality of life for their families and their communities. It is designed to demonstrate the impact of microfinance on micro-entrepreneurs and poverty reduction. Continue Reading »

Through its Gateway Microfinance Infrastructure Fund (GMI), ACCION International, a private, nonprofit organization with 35 microfinance institution (MFI) partnerships worldwide, has announced an unspecified investment in United Villages, Inc., a rural Internet Service Provider which provides people in the developing economies a voicemail box, an email address, and Internet access for less than $1 per person. Continue Reading »

MICROFINANCE IN CENTRAL ASIA: ROAD AHEAD

SEPTEMBER 20-21, 2007, DUSHANBE, TAJIKISTAN

The Association of Micro Finance Organizations of Tajikistan (AMFOT) and the Central Asia Micro Finance Alliance (CAMFA) have announced its fifth annual regional conference to be held in Dushanbe,Tajikistan. The conference will be conducted simultaneously in Russian and English. Participants are expected from government, banks and microfinance institutions (MFIs), international institutes, support funds, rating agencies and international investors that specialize in financing banks and non-bank microfinance programs. Continue Reading »

CLINTON GLOBAL INITIATIVE 2007 ANNUAL MEETING – SEPTEMBER 26-28, 2007, NEW YORK, NEW YORK, USA

The Clinton Global Initiative (CGI) is a non-partisan, global effort to bring together world leaders to discuss pressing world challenges in education, energy and climate change, global health and poverty alleviation. At the core of the CGI is its annual meeting which began in 2005 and is designed as a working session to generate innovative solutions to problems across the globe. The CGI is a project of the William J. Clinton Foundation, a non-profit organization founded by US President Clinton, which aims to strengthen the capacity of people in the United States and throughout the world to meet the challenges of global interdependence.

The 2007 meeting will include over 1,000 leaders from business, non-government organizations (NGOs), foundations, academia and government. The meeting will be held September 26-28, 2007 in New York City and offers various concurrent working sessions each day on the four primary areas of focus. Continue Reading »

NEXT GENERATION ACCESS TO FINANCE: GAINING SCALE AND REDUCING COSTS WITH TECHNOLOGY AND CREDIT SCORING – SEPTEMBER 17-19, 2007, WASHINGTON, D.C., USA

The International Finance Corporation (IFC), a member of the World Bank Group dedicated to private sector development and the Consultative Group to Assist the Poor (CGAP), a consortium of public and private development agencies working together to expand access to financial services for the poor in developing countries, are working together with VISA International, a global card services and payment processing provider, to organize a microfinance technology conference entitled, “Next Generation Access to Finance: Gaining Scale and Reducing Costs with Technology and Credit Scoring.” Continue Reading »

By Jill Luoto, Craig McIntosh and Bruce Wydick, published by the University of Chicago Press, January 2007, 42 pages, available on the Microfinance Gateway at http://www.microfinancegateway.org/content/article/detail/41758

The paper written by Jill Luoto, Craig McIntosh and Bruce Wydick explores the impact of credit information systems on microfinance institutions (MFIs) in developing economies. It is divided into five sections and presents data that attempts to measure the effect of a credit information system on a Guatemalan MFI. Continue Reading »

Technology Review, an independent media company owned by the Massachusetts Institute of Technology, has named Tapan Parikh its 2007 Humanitarian of the Year for his work on mobile phone technologies geared toward microfinance and other rural development initiatives. Mr. Parikh, a doctoral candidate in computer science at the University of Washington, was honored in Technology Review’s 2007 report, TR35, which showcases the technological achievements of pioneering innovators under the age of 35.Mr. Parikh’s innovation is CAM, a framework of mobile tools that integrate through the use of a camera-enabled mobile phone. The CAM framework uses the mobile phone to capture images, scan documents, and to record and transmit financial transaction data. Continue Reading »

LDM Productions, a French production company, and the United Nations Development Programme, a multilateral development assistance network, are working together to produce a full-length feature film that explorers the eight United Nations Millennium Development Goals (MDGs). Continue Reading »

Bangladesh’s Micro-credit Regulatory Authority (MRA) has begun the process of issuing its first licenses to microfinance institutions (MFIs). The MRA was formed in August 2006 when the Bangladesh government passed the Micro-credit Regulatory Authority Act. The law requires all MFIs operating in Bangladesh to apply for and receive a license issued by the authority. MFIs with existing operations were given a deadline of February 26, 2007, to apply. According to recent information, the MRA received approximately 4,000 applications of which 700 were approved. MRA officials completed field inspections of at least 200 MFIs to verify the accuracy of application information and about 60 MFIs were asked to deposit license fees in order to receive their licenses. The MRA plans to issue more licenses after the first phase is complete. Continue Reading »

The Gray Ghost Microfinance Fund LLC, founded in November 2003 by Robert Pattillo, manages a for-profit investment fund comprised solely of investments in microfinance funds. Headquartered in Atlanta, Georgia, Gray Ghost, a limited liability company, manages USD 75 million in total assets. Essentially, Gray Ghost’s fund is a fund of funds. It invests in microfinance funds that supply start-up and expansion capital to microfinance institutions (MFIs) worldwide. Some of Gray Ghost’s investments include USD 4.9 million in Antares Equity Participation Fund (a fund conceived by Robert Pattillo), USD 4 million in Deutsche Bank’s Global Commercial Microfinance Consortium, USD 2 million in Catalyst Microfinance Investors, and USD 2.6 million in Bellwether Microfinance Fund. Continue Reading »

The International Finance Corporation (IFC), a member of the World Bank Group dedicated to private sector development, has agreed to invest 77 million Mexican pesos (USD 7.1 million equivalent) in Mexican microfinance bank Banco Amigo. Formally known as Banco Comercial del Noreste, S.A., the bank is headquartered in Monterrey, Mexico, and opened to the public in May 2007. The bank received its banking license in November 2006. Prior to licensing, it operated as a non-bank financial institution since 2005. The common share equity investment represents up to an 18% stake in the bank. Continue Reading »

By Stuart Mathison, published by the Foundation for Development Cooperation (FDC), March 2007, 4 pages, available at http://www.microfinancegateway.org/content/article/detail/41751Stuart Mathison’s paper explores the impact of e-banking on microfinance. He highlights information and communication technologies (ICT) and their potential uses. He argues ICT innovations are crucial elements in the industry’s long-term objectives. Yet, core business models and methodologies that have served microfinance for years will require adaptation. Microfinance institutions (MFIs) need to reevaluate and revise policies in order to successfully implement new technologies. Continue Reading »

In the wake of the 2004 Indian Ocean earthquake, Habitat for Humanity International (HFHI), a non-profit organization founded in 1976, is accelerating its efforts to return decent housing to the over 500,000 Sri Lankan citizens displaced by a devastating tsunami. Combined with HFHI’s traditional donation-funded building program, the organization has implemented a program entitled “Save and Build” to help low-income families pool funds to meet construction costs. Continue Reading »

Pro Mujer, meaning “Pro Woman” in Spanish, is a Latin American development organization that facilitates the growth of sustainable microfinance institutions. Founded in Bolivia in 1990, it now also operates in Argentina, Mexico, Nicaragua, and Peru. Pro Mujer’s most recent combined financial statement, published in 2006, revealed assets in excess of USD 25 million and a loan portfolio over USD 19 million. With an estimated client base of over 200,000, Pro Mujer helps thousands of poor, uneducated women to escape poverty by encouraging entrepreneurial pursuits through financial services and training. Continue Reading »

“Everybody needs some money sometime,” and Western Union, a global leader in money transfer services, may fulfill that need with micro-lending. During its Q2 investor conference call, President and Chief Executive Christina Gold indicated the company was exploring the possibility of developing a micro-lending program in an effort to increase profits. Such programs are typically high risk since individuals seeking funds usually don’t have collateral and their capacity to repay is uncertain. Continue Reading »