Category: Africa

MICROCAPITAL BRIEF: Fonds pour l’inclusion Financière en République Démocratique du Congo (FPM) Receives Authorization from Central Bank of the Congo to Issue Wholesale Financing to Lenders Serving Micro-, Small, Medium-Sized Enterprises (MSMEs)

Fonds pour l’inclusion Financière en République Démocratique du Congo (FPM) SA, a nonprofit organization based in the Democratic Republic of the Congo (DRC) that was formerly known as Fonds de Promotion de la Microfinance, recently received authorization to operate as a financial company from the Central Bank of the Congo, DRC’s central banking authority. Continue reading

Share

MICROCAPITAL BRIEF: Amret Microfinance, Econet Wireless, myAgro, Urwego Opportunity Bank to Engage Human-Centered Design Firms to Improve Digital Financial Services for Smallholder Farmers in Cambodia, Africa

CGAP (The Consultative Group to Assist the Poor), a US-based nonprofit that aims to facilitate the expansion of financial access, recently selected the following financial service providers to receive an unspecified level of support from human-centered design firms to improve their digital financial services for small-scale farmers: (1) Amret Microfinance, a Cambodian microfinance institution; (2) the Zimbabwean arm of South African mobile network operator Econet Wireless and US-based relief and development nonprofit Mercy Corps; (3) myAgro, a nonprofit organization in Mali that sells agricultural inputs via a mobile technology; and (4) Urwego Opportunity Bank (UOB), a microfinance institution that was created as a result of a merger between Urwego Community Banking and Opportunity International Bank of Rwanda [1]. While the Econet-Mercy partnership will engage human-centered design firm IDEO.org, the other three programs have not yet released the names of the organizations with which they will work.  Continue reading

Share

MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $5m to Enda Inter-Arabe to Serve More Low-income Microentrepreneurs in Tunisia

The Sanad Fund for MSME (micro-, small and medium-sized enterprise), a Germany-based provider of “medium- and long-term” and equity financing in the Middle East and North Africa, recently agreed to loan the equivalent of USD 5 million in local currency to Enda Inter-arabe, to help it expand its lending into additional underserved areas of Tunisia.

Continue reading

Share

MICROCAPITAL BRIEF: Orange, Ecobank Partner to Launch Mobile Money Service in Mali with Plans to Expand Across Africa

Orange, a French provider of telephone and Internet service in 30 countries, and EcoBank Transnational Incorporated (EcoBank), a Togo-based bank operating in 28 countries, recently launched a mobile banking service that will enable Orange Money subscribers to transfer money between Ecobank accounts. As of February 5, both companies signed a partnership agreement to launch the service in Mali, and they plan to expand to Cameroon, Côte d’Ivoire, Guinea Conakry, Niger, Senegal and the Democratic Republic of the Congo in the future. Customers also will be able to check their account balances, receive “mini-statements” via short message service (SMS, also known as text messaging) and top-up their Orange Money e-wallets [1].  Continue reading

Share

SPECIAL FEATURE: Are Microfinance Institutions and Investors Removed from Business Reality?

This opinion piece was contributed by David MacDougall, a consultant based in the US city of New York.

Microfinance inspires optimism. Investors – especially private equity investors – anticipate handsome returns; aid agencies see strong social impact; and microfinance institution (MFI) managers are certain they can grow themselves out of every tight situation. While microfinance can play an important role in development, most MFIs nevertheless are relatively simple financial institutions that need to be grounded in sound market and business principles rather than pie-in-the-sky expectations. These “Business 101″ principles, which may sound like common sense truisms, in my experience, have not trickled down to many MFIs. In over 10 years of examining the viability of MFI business models as an analyst and risk manager, I have seen decision makers fail again and again to do reality checks. What’s still urgently needed is sound market analysis and professional risk management. Continue reading

Share

MICROCAPITAL BRIEF: International Fund for Agricultural Development (IFAD) Loans $29m to Government of Uganda in Effort to Bring Financial Inclusion, Improved Nutrition to 576k Rural Households

The International Fund for Agricultural Development (IFAD), an agency of the United Nations that aims to alleviate poverty in rural areas, recently extended a loan of USD 29 million to the government of Uganda to support the Project for Financial Inclusion in Rural Areas (PROFIRA). Continue reading

Share

MICROCAPITAL BRIEF: Nigeria’s Bank of Industry (BOI) Earmarks $105m for Micro-, Small, Medium-sized Enterprises (MSMEs) in the Country

The Bank of Industry (BOI), which was established by the Nigerian government to promote domestic sectors such as agriculture and finance in Nigeria, recently earmarked NGN 19.8 billion (USD 105 million) to support micro-, small and medium-sized enterprises (MSMEs). Continue reading

Share

MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $45.3m to Union bancaire pour le commerce et l’industrie (UBCI) of Tunisia for On-lending to Micro-, Small, Medium-sized Enterprises (MSMEs)

The European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London, has announced that it will loan EUR 40 million (USD 45.3 million) to Union bancaire pour le commerce et l’industrie (UBCI), the Tunisian commercial banking subsidiary of BNP Paribas, a French financial group. Continue reading

Share

MICROCAPITAL BRIEF: Développement international Desjardins (DID) to Establish 4 More Entrepreneur Financial Centers in Tunisia, Elsewhere in Africa, Latin America

Développement international Desjardins (DID), a Canadian nonprofit providing technical support and investment for the community finance sector in emerging economies, has announced that it will establish four new entrepreneur financial centers (EFCs) in Africa and Latin America. Continue reading

Share

MICROCAPITAL BRIEF: Etisalat, First Bank of Nigeria Merge Easywallet, Firstmonie Mobile Money

Etisalat, a United Arab Emirates-based telecommunications services provider, and First Bank of Nigeria (FBN), a commercial bank based in the Nigerian state of Lagos, recently fused FBN’s “Firstmonie Mobile Money,” a service that allows customers to access their FirstBank accounts as well as transfer funds through their mobile devices [2], and Etisalat’s “Easywallet,” a service allowing money transfers, airtime top-up, and payment for goods and services via mobile phones [3]. Continue reading

Share

MICROCAPITAL BRIEF: Grameen Crédit Agricole Microfinance Foundation Loans $1.2m to Oxus DRC, DRC’s Hekima, Burkina Faso’s ACFIME

The Grameen Crédit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to microfinance institutions (MFIs) and other social businesses, recently informed MicroCapital that it has issued the following three loans: (1) EUR 630,000 (USD 732,000) over a two-year period to Oxus DRC, a for-profit MFI based in the Democratic Republic of the Congo (DRC) that was launched in 2013 by the France-based Oxus Group; (2) EUR 271,000 (USD 314,000) over a three-year period to Hekima, a nonprofit specialising in providing group loans to “economically active” poor people in eastern DRC; and (3) EUR 198,000 (USD 230,000) over a three-year period to Agence Communautaire pour le Financement de la Micro Entreprise (ACFIME), a microfinance institution serving low-income populations in Burkina Faso [1]. Continue reading

Share

MICROCAPITAL BRIEF: Grameen Crédit Agricole Microfinance Foundation Loans $1.2m to Kenya’s Juhudi Kilimo, Uganda Microcredit Foundation (UMF), Uganda’s Encot

The Grameen Crédit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to microfinance institutions (MFIs) and other social businesses, recently informed MicroCapital that it has issued the following three loans in local currency equivalent to: (1) EUR 482,000 (USD 555,000) over a two-year period to Juhudi Kilimo, a for-profit provider of microloans and microinsurance in Kenya; (2) EUR 293,000 (USD 339,000) over a three-year period to Uganda Microcredit Foundation (UMF), a microfinance institution offering financial services to “economically active” Ugandans; and (3) EUR 257,000 (USD 297,000) over a three-year period to Encot, a provider of microloans to rural enterprises in Uganda [1].  Continue reading

Share

MICROCAPITAL BRIEF: Swaziland Ministry of Finance to Develop Credit Information Sharing Program as Plan to Increase Financial Inclusion to 75% by 2022

Swaziland’s Ministry of Finance reportedly will launch a program to protect Swazi consumers from over-indebtedness by making consumer credit information available to all credit providers in the country, including development finance institutions, microlenders, savings cooperatives and retailers [1]. Another aim of the effort is to lower the cost of credit to support a government effort to increase financial inclusion in the country from 50 percent in 2011 to 75 percent by 2022 [2]. The principal secretary in the Ministry of Finance, Bheki Bhembe, reportedly said that “The project aims to strengthen credit information flow in Swaziland. By so doing, the project aims to increase access to affordable credit among the under-served market segments.” Continue reading

Share

MICROCAPITAL BRIEF: Triodos Investment Management Invests in Tunisia’s Enda Inter-Arabe, Uganda’s Entrepreneurs Financial Centre

Triodos Investment Management, a subsidiary of Netherlands-based Triodos Bank, recently disbursed loans of unspecified sizes to Enda Inter-Arabe, a Tunisian financial services provider that is part of Senegal-based non-governmental organization Enda Third-World, and Entrepreneurs Financial Centre (EFC) Uganda, a microfinance institution that provides financial services to micro-, small and medium-sized enterprises (MSMEs).  Continue reading

Share

MICROFINANCE PAPER WRAP-UP: Exploring New Frontiers – The Potential of Impact Investments in Microinsurance

By Jeremy Leach, Sandisiwe Ncube and Anand Menon; published by the Microinsurance Network; 2014; 49 pages; available at http://www.microinsurancenetwork.org/sites/default/files/MICRO_NetworkInvestor_PaperWEB.pdf

Microinsurance, a risk mitigation and management tool for people with low incomes, has grown from 78 million lives covered in 2005 to approximately 263 million lives in 2013, with a potential market estimated at 3 billion to 4 billion policies generating USD 30 billion to USD 50 billion in annual premium revenue. Total demand for microinsurance is growing approximately 10 percent per year, which the authors argue points to increasing investment opportunities and a promising business case for investors. Continue reading

Share

MICROCAPITAL BRIEF: Triodos Sustainable Trade Fund Opens $2m Credit Line for Thai Organic Rice Company Urmatt, Cocoa Producer ICAM Uganda

The Triodos Sustainable Trade Fund, which provides trade finance loans to co-operatives and private companies operating in “sustainable” agricultural value chains, recently opened a credit line for Urmatt Limited, a Thai company producing and processing certified organic rice, and ICAM Chocolate Uganda Limited, a subsidiary of the Italian firm Industria Cioccolato e Affini Morbegno (ICAM) that sources organically grown green cocoa beans directly from local farmers in Uganda. The funding, which is capped at USD 2 million [3], is intended to enable these two companies to pay “fair” prices to farmers and improve their cash flow management [1]. Continue reading

Share