PaygOps, the primary product of UK-registered Solaris Offgrid, recently released a service through which providers of pay-as-you-go (PAYGO) solar products can raise funds by selling receivables. The software from PaygOps allows investors to study and purchase PAYGO providers’ contracts. This reduces the extent of due diligence lenders must perform on the providers relative to the more common practice of using the contracts as collateral for a loan. PaygOps envisions this reducing investment costs sufficiently to bring the minimum profitable PAYGO investment size from approximately USD 500,000 to less than
Category: Africa
MICROCAPITAL BRIEF: Bank of Abyssinia to Loan $13m to 4 Microfinance Institutions in Ethiopia for Lending to MSMEs Based on Movable Collateral
Bank of Abyssinia (BOA), a financial services provider in Ethiopia, recently agreed to loan ETB 600 billion (USD 13 million) to four Ethiopian microfinance institutions (MFIs) to increase financial access for micro-, small and medium-sized enterprises (MSMEs) by harnessing moveable collateral such as
MICROCAPITAL BRIEF: Tagit Developing Mobile App for Advans Microfinance Institutions in Africa, Asia
Advans Group, a Luxembourg-based microfinance organization with operations in nine low- and middle-income countries, recently partnered with Tagit, a Singapore-based mobile technology company, to develop a mobile banking application for Advans customers. The app will be based on
MICROFINANCE PAPER WRAP-UP: “Microfinance Clients Facing the COVID-19 Crisis: From Findings to Action for MFIs;” by Mathilde Bauwin, Thu Hien Dao; Published by ADA
This paper explores the impact of the COVID-19 pandemic on clients of microfinance institutions (MFIs) in terms of: “Which client segments are most affected? How are they coping with the situation? What are they doing to
SPECIAL REPORT: The SAM Innovators’ Village – What About the 2019 Iteration Convinced So Many to Return for the SAM 2021 Coming Up in October in Rwanda?
The SAM (Semaine Africaine de la Microfinance – African Microfinance Week in French) is a major five-day gathering dedicated to inclusive finance in Africa. Since the first SAM in 2013, the SAM has consistently offered a true ecosystem of events, including a two-day conference that this year will deeply explore the resilience of the sector and the populations it serves, thanks to the participation of a range of high-level speakers and panelists. Before and after the conference, participants will meet new partners and learn new skills at the Investors’ Fair, the Innovators’ Village and a wide assortment of free training sessions and workshops.
The Innovators’ Village is a key element of the SAM, showcasing innovative solutions that strengthen the resilience of individuals and organisations in the inclusive finance sector. It is also a meeting place, creating opportunities for synergies among a myriad of actors in the sector. At the Innovators’ Village, you’ll find a range of organisations that can strengthen the resilience to shocks of African institutions and populations through concrete tools, methodologies, products and services. Exhibitors will meet new potential customers and investors to develop their businesses, as well as partners for new projects. Practitioners likewise will identify innovative solutions that meet their needs and find potential partners and investors. Funders can identify innovative solutions with high potential for both social and financial returns.
Probably the most effective way to understand the value of the Innovators’ Village is through the words of leaders who have participated as exhibitors in the past and will return for this next edition of the SAM, which will take place in Kigali, Rwanda, from October 18 to 22, 2021.
Jarek Chuchla, Microfact Coordinator: Every single edition of the SAM is a
MICROFINANCE EVENT: The SAM (Semaine Africaine de la Microfinance); October 18-22, 2021; Kigali, Rwanda
This year’s SAM (Semaine Africaine de la Microfinance) includes five days of conference sessions, an investors’ fair, an “Innovators’ Village,” research presentations, training sessions and workshops under the theme “Resilience of the African Inclusive Finance Sector.” The two-day conference portion of SAM includes sessions on topics such as how the COVID-19 pandemic has affected efforts to meet the UN Sustainable Development Goals, financing agricultural value chains, risk management, serving youth, digital infrastructure and post-crisis reconstruction. The other days of SAM include workshops on topics such as social performance,
MICROCAPITAL BRIEF: SoftBank Leads $400m Equity Funding Round for Fintech OPay of Nigeria as it Eyes International Expansion
The SoftBank Vision Fund 2, a vehicle of the Japanese conglomerate SoftBank, recently led an investment package totaling USD 400 million in the Nigeria-based financial technology (fintech) firm OPay, a mobile platform for sending payments. The funding round values
SPECIAL REPORT: Building Resilience for Microfinance Clients – the SAM 2021 Conference in Kigali, Rwanda, October 18-22
MicroCapital: How will the theme resilience be addressed during the SAM 2021?
Yombo Odanou: The EU has defined resilience as “the capacity of an individual, household, community, country or region to resist, adapt and recover quickly from crises and shocks.” The dual climate and COVID-19 crises and their effects on the global economy are forcing institutions to find new ways to take advantage of this austere environment.
Christophe Hebting: We believe the discussions at the SAM can build the resilience capacity of all actors in the inclusive finance sector. This includes addressing questions such as: How can resilience be increased through structural change? In the face of climate change? Through technological innovations?
MC: How are you addressing concerns attendees may have regarding the potential transmission of COVID-19 during the event?
YO: Since the beginning of this pandemic, MAIN has initiated actions to enable its members to minimise the risk of infection, allowing them to continue
MICROCAPITAL BRIEF: Forest Capital Acquires Kayvee Microfinance Bank of Nigeria as Part of Farmforte Plan to Boost Agricultural Value Chains via Technology, Financial Access
Forest Capital, a unit of Nigeria-based Farmforte Limited, recently acquired Nigeria’s Kayvee Microfinance Bank for an undisclosed price. Based in Nigeria, Farmforte’s goal is
MICROCAPITAL BRIEF: Judge in Nigeria Sentences Former Director of Workman Microfinance Bank to 5 Years in Prison
Sarita Aliyu Bello, the former Managing Director of Nigeria’s Workman Microfinance Bank, recently was sentenced to five years in prison after pleading guilty to
MICROFINANCE EVENT: Africa SACCOs Week; April 25-27, 2022; Nairobi, Kenya
Africa SACCOs Week focuses on the development of Savings and Credit Co-Ooperatives (SACCOs) in Africa. A SACCO is a “member-based financial institution which operates on cooperative values, identity and principles, which include social responsibility, openness, honesty and caring for each other.” The theme of this year’s conference is
MICROCAPITAL BRIEF: Cenfri, Cornerstone, GLEIF, London Stock Exchange Collaborate on Legal Entity Identifiers (LEIs) to Boost Financial Inclusion of SMEs in Africa
Four organizations recently launched an effort to equip small and medium-sized enterprises (SMEs) in Africa with Legal Entity Identifiers (LEIs), which are 20-digit codes linked to “business card and ownership structure information about a legal entity which can be verified quickly and efficiently by anyone, anywhere, enabling organizations to know precisely with whom they are doing business.” The participating entities are
MICROCAPITAL BRIEF: IFC, FMO Loaning $50m to I&M Bank to Support SMEs in Kenya
The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, along with Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership, recently announced a loan package of USD 50 million for I&M Bank Limited, which is owned by the Kenya-based I&M Group. The funds are intended to
SPECIAL REPORT: “Financial Inclusion Compass 2021” Reveals a Sector Grappling with the Consequences of COVID-19 – and Trying to Look Beyond It
In
2018, e-MFP launched the first Financial Inclusion Compass, a new annual publication series to collate sector opinions on emerging short-, medium- and long-term trends in the financial inclusion sector. e-MFP is delighted to now publish the English language version of the Financial Inclusion Compass 2021 – the fourth in the series.
The survey on which this paper is based was open in May 2021, with financial services providers (FSPs), investors, donors, researchers and support services providers evaluating and describing the importance of various current Trends, rating future New Areas of Focus, and providing open-comment qualitative input on the expected (and hoped-for) direction of financial inclusion progress.
The survey had two main sections: in Section 1, respondents rated from 1-10 the current importance of a list of 20 Trends and evaluated a list of 16 future New Areas of Focus to rank their highest five in terms of future significance. Optional comments on each were possible. Section 2 had three optional and open-ended questions, with a focus on the impact of the pandemic.
The Compass received 125 responses from 39 countries. A plurality of respondents were FSPs, followed by consultants/support services providers, infrastructure organisations, funders and researchers. On the main geographic focus of respondents’ work, a plurality selected Global, followed by Sub-Saharan Africa, Asia and Latin America.
Trends
Two new trends, introduced in response to the uniquely challenging context of the pandemic, took the top two spots
MICROCAPITAL BRIEF: POSRocket Raises $5m to Expand Point-of-sale Payment Systems, Related Technology for Small Businesses in MENA
POSRocket, a Jordan-based provider of point-of-sale (POS) technology, recently raised USD 5.1 million in an equity round led by Algebra Ventures, an Egypt-based firm that invests in technology, and Sanad Fund for MSME, a Luxembourg-based vehicle targeting micro-, small and medium-sized enterprises (MSME) in the Middle East and North Africa (MENA). The other participating investors are
MICROCAPITAL BRIEF: Alpha Direct of Botswana Expands Insurance Service to Zambia, Plans Equity Raise
Botswana-based insurance underwriter Alpha Direct recently expanded its operations to Zambia under the name Alpha Insurtech Zambia. Alpha Insurtech is partnering with Zambia-based General Alliance Insurance to
MICROCAPITAL BRIEF: REGMIFA Raises $10m from FMO to Invest in MSMEs in Sub-Saharan Africa
Recently, the Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA), a fund that invests in micro-, small and medium-sized enterprises (MSMEs) in 19 countries, accepted an investment of USD 10 million from Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership. The purpose of REGMIFA is to
MICROCAPITAL BRIEF: IFAD Private Sector Financing Programme to Support Rural Businesses, Launching with $5m Loan to Babban Gona, Facilitator of Agriculture in Nigeria
The UN’s International Fund for Agricultural Development (IFAD) recently launched the Private Sector Financing Programme (PSFP) to support rural businesses; combat hunger, poverty and climate change; and promote the inclusion and empowerment of vulnerable groups in poor countries. The program will issue