Category: Africa

SPECIAL REPORT: The Mergers & Acquisitions Market in Africa’s Alternative Finance Sector

Headlines in the M&A market in Africa in recent years seem to have been dominated by the to-ing and fro-ing of Anglo-South African giants such as Barclays Africa/ABSA and Old Mutual. However, financial institutions in the middle market perhaps have been more active. The M&A market in the alternative finance sector (non-bank or “specialty” lenders) has seen at least 30 transactions (excluding minority stakes) completed over the last five years, and activity levels have remained robust over the last 18 months notwithstanding the slow-down of the M&A market overall.

The alternative finance sector covers a range of credit institutions that are not part of the traditional banking sector, for example, micro (enterprise) finance, consumer finance, leasing or invoice discounting, vehicle lending, housing finance, student finance, fintech, and specialist banks. Continue reading

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MICROCAPITAL BRIEF: Bank of Ghana Introduces New Business Regulations, Sanctions to Improve Governance of Microfinance Sector

The Bank of Ghana (BoG), the financial regulator of the country, recently introduced a new set of business regulations and sanctions in order to more effectively regulate the microfinance sector. The new regulations will require MFIs to monitor and report on their operations and newly imposed fines will apply Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: Bank of Ghana Introduces New Business Regulations, Sanctions to Improve Governance of Microfinance Sector Posted in Africa, Regulation, Transparency

MICROCAPITAL BRIEF: Whole Foods Market’s Whole Planet Foundation Raises $2.2m to Support Microfinance Institution Partnerships in 11 Countries, Including Expanding Work with Grameen America to New York, Miami

The Whole Planet Foundation, an affiliate of US-based grocer Whole Foods Market, announced it has secured donations of USD 2.2 million (as of March 17) towards its goal of raising USD 3.2 million by the end of March 2017 to grant for microlending through Continue reading

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MICROCAPITAL BRIEF: TriLinc Approves $36.8m in Term Loans, Trade Finance for SMEs in Africa, Latin America, Southeast Asia

TriLinc Global Impact Fund (TriLinc) recently announced that it has approved USD 36.8 million to fund term loans and trade finance transactions for small and medium-sized enterprises (SMEs) that operate in Africa, Latin America and Southeast Asia. The term loans will be disbursed to 10 different companies Continue reading

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SPECIAL REPORT: Raising Funds for Non-bank Financial Institutions in Africa

The non-bank financial institution (NBFI) sector, often referred to as the alternative finance sector or the shadow banking sector, around the world is largely dependent on the institutional market for funding. By regulation, NBFIs in most markets are prohibited from gathering deposits or restricted from transactional banking services, which are critical to attract deposits. In most markets, banks themselves are reluctant to lend to NBFIs, given the potential long-term competitive threat. For example, Capitec of South Africa and Equity Bank of Kenya, which are now very much fully-fledged banks, have roots as NBFIs. In South Africa, the deepest and broadest market in Africa, NBFIs have been largely focused on borrowing from the domestic market.

This is not without risks given, for example, the significant reversal in domestic investor sentiment following the collapse of African Bank in August 2014. African Bank’s largest peer, Capitec, was less affected because Continue reading

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MICROCAPITAL BRIEF: C-Quadrat’s Dual Return Vision Microfinance Funds Loan $18m in Eurasia, Latin America, Zambia

C-Quadrat Asset Management, an arm of Austrian fund manager C-Quadrat, recently informed MicroCapital that its Dual Return Vision Microfinance and Dual Return Vision Microfinance-Local Currency funds loaned a total approximately equivalent to USD 17.5 million to unidentified providers of financial services in Cambodia, Continue reading

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MICROCAPITAL BRIEF: Tigo Rwanda Launches TigoNshoboza Mobile Microloans on Pilot Basis

Tigo Rwanda Limited, a unit of Sweden’s Millicom that offers mobile telecommunications services, recently announced it has launched its TigoNshoboza Loan Service, which allows users of the Tigo Cash service in Rwanda to access loans via their mobile wallets. TigoNshoboza is in a pilot phase, so the number Continue reading

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MICROCAPITAL BRIEF: After Launch in Tanzania, Ecobank Mobile App Available in 33 African Countries

Ecobank Tanzania, a unit of Togo-based Ecobank Group, recently announced its launch of the Ecobank Mobile App, which allows customers to use mobile devices to perform fund transfers, top-up airtime, pay bills, check forex rates, view account statements, make retail payments, and interface with payment cards and checks. Continue reading

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MICROCAPITAL BRIEF: IFAD, DiD Renew Cooperation in Cameroon via Youth Agropastoral Entrepreneurship Promotion Program (PEA-Youth)

Développement international Desjardins (DiD), an arm of Canada’s cooperative Desjardins Group, recently announced it has received additional funding from the UN’s International Fund for Agricultural Development (IFAD) continue participating in the Youth Agropastoral Entrepreneurship Promotion Program (PEA-Youth) in Cameroon through 2018. PEA-Youth supports rural Continue reading

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MICROCAPITAL BRIEF: FMO Lends $52.5m to Climate Investor One for Hydro, Solar, Wind Energy Projects in Africa, Asia

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, recently announced it will loan USD 52.5 million in two transactions to Climate Investor One (CIO), a facility managed by Netherlands-based Climate Fund Managers. The objective of the loan is for CIO to aid in the development Continue reading

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MICROCAPITAL BRIEF: Arise – Founded by Norfund, FMO, Rabobank to Invest in African Financial Services Providers – Buys 28% Equity Stake in Ghana’s CAL Bank from DPI

Arise, an investment company recently launched in South Africa by three European institutions, has paid an undisclosed price to acquire 27.7 percent of the shares of CAL Bank, a publicly traded financial institution in Ghana. Arise bought the stake from Continue reading

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MICROFINANCE PUBLICATION ROUND-UP: Impact of M-Pesa Mobile Money; Microinsurance in Sri Lanka; Women’s Financial Diaries in India, Kenya, Mexico

“The Long-run Poverty and Gender Impacts of Mobile Money”; by Tavneet Suri and William Jack; published in Science; December 8, 2016, 4 pages; available at http://science.sciencemag.org/content/354/6317/1288.full/

This article reviews a study that assessed the impact of the M-Pesa mobile payment service in Kenya. Continue reading

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MICROCAPITAL BRIEF: Success Microfinance Bank (Formerly Collarhedge Finance) Acquires Deposit-taking License from Reserve Bank of Zimbabwe

Success Microfinance Bank, a financial institution in Zimbabwe formerly known as Collarhedge Finance, recently received a license from the Reserve Bank of Zimbabwe allowing it to accept deposits. Microfinance banks in the country Continue reading

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Written by Comments Off on MICROCAPITAL BRIEF: Success Microfinance Bank (Formerly Collarhedge Finance) Acquires Deposit-taking License from Reserve Bank of Zimbabwe Posted in Africa, Regulation

MICROCAPITAL BRIEF: FMO Investing $15m in Equity in Sanad Fund for MSME for On-lending in the Middle East, North Africa

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, recently announced that it will place equity of USD 15 million in the debt sub-fund of the Sanad Fund for MSME (Micro-, Small and Medium-sized Enterprise), which disburses “medium- and long-term” loans to financial institutions that serve MSMEs Continue reading

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MICROFINANCE EVENT: Young Africa Works Summit; February 16 – 17, 2017; Kigali, Rwanda

Event Name: Young Africa Works Summit

Event Date: February 16 – February 17, 2017

Event Location: Kigali, Rwanda

Summary of Event: This second iteration of this event will convene young agricultural entrepreneurs with leaders of NGOs and government agencies to address how young people Continue reading

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MICROCAPITAL BRIEF: AYo Offers Free Mobile Health, Life Insurance to MTN Phone Subscribers in Uganda: “Recharge with Care” & “Send with Care”

AYo, which is a joint venture between two South African firms, insurer MMI Holdings and the MTN (Mobile Telecommunications Network) Group, recently launched its first two products, both in Uganda: (1) Recharge with Care, which provides life and/or hospitalization insurance when an MTN phone subscriber buys airtime; and (2) Send with Care, which Continue reading

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MICROFINANCE EVENT: 38th Midi de la Microfinance et de l’Inclusion Financière; March 8, 2017; Luxembourg

Event Name: 38th Midi de la Microfinance et de l’Inclusion Financière

Event Date: March 8, 2017

Event Location: Banque de Luxembourg, 14 Boulevard Royal, Luxembourg

Summary of Event: This 38th “Midi,” which is titled “Entreprenante Afrique: The Age of SMEs” consists of a one-hour discussion on the role that investors can play in the development of small and medium-sized enterprises Continue reading

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Written by Comments Off on MICROFINANCE EVENT: 38th Midi de la Microfinance et de l’Inclusion Financière; March 8, 2017; Luxembourg Posted in Africa, Events, Key Players

MICROCAPITAL BRIEF: EBRD Lends $10.9m to Compagnie Internationale de Leasing to Support MSMEs in Tunisia

The European Bank for Reconstruction and Development (EBRD), a UK-based financial institution, recently announced that it is providing a senior unsecured loan of TND 25 million (USD 10.9 million) to Compagnie Internationale de Leasing (CIL), a Tunisian company that rents and leases industrial equipment and goods. The loan is intended to allow CIL Continue reading

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