Category: Africa

MICROCAPITAL BRIEF: Ghana Institute for Management and Public Administration, Venture Capital Trust Fund Establish Centre for Impact Investing

Venture Capital Trust Fund (VCTF), an initiative of the government of Ghana to provide low-cost capital to private businesses, reportedly has signed a memorandum of understanding with the government-run business school Institute for Management and Public Administration (GIMPA), establishing a Centre for Impact Investing. Continue reading

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MICROCAPITAL BRIEF: Low Repayment Rates Threaten Ghana’s Governmental Microfinance and Small Loan Centre (MASLOC)

The Microfinance and Small Loans Center (MASLOC), a Ghanaian government-funded program established in 2004 to implement microfinance programs targeted at reducing poverty and creating jobs, reportedly has indicated that low loan repayment rates are threatening to collapse the program. Continue reading

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MICROCAPITAL BRIEF: Online Fundraiser Kiva Discloses Delinquencies of Microfinance Institutions Alidé of Benin, FECECAV of Togo

Kiva, a US-based online microlending fundraiser, recently reported on delinquent payments due to Kiva by non-profit institutions L’Association de Lutte pour la promotion des Initiatives de Développement (Alidé) of Benin and Faîtière des Caisses d’Epargne et de Crédit des Associations Villageoises (FECECAV) of Togo. Continue reading

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MICROCAPITAL BRIEF: South Africa’s Small Enterprise Development Agency (SEDA) to Disburse $81m to 15,000 Small Businesses

Chief Executive Officer Thankani Makhuvha of South Africa’s Small Enterprise Development Agency (SEDA), a government-funded entity, has reportedly stated that the organization intends to disburse approximately ZAR 737 million (USD 81 million) in loans to 15,000 small businesses in South Africa during the year ending March 31, 2014. Continue reading

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MICROFINANCE PAPER WRAP-UP: “Policy Brief: Advancing African Women’s Financial Inclusion;” published by Making Finance Work for Africa, GIZ, New Faces New Voices, East African Community, BMZ

Published by Making Finance Work for Africa (MFW4A), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), New Faces New Voices, East African Community, Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ); 2012; 40 pages; available at: http://www.gbaforwomen.org/images/library/873/Advancing-Womens-financial-inclusion-Final-English.pdf

This report presents an analysis of the potential positive impacts of advancing African women’s financial inclusion, including more inclusive and sustainable economic growth and higher levels of productive investment and asset accumulation. Continue reading

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MICROCAPITAL BRIEF: Hasal Microfinance Bank of Nigeria Leases $37k in Farming Equipment to Integrated Rice Farmers Association

Hasal Microfinance Bank Limited, a Nigerian microfinance institution (MFI), reportedly has provided NGN 6 million (USD 37,900) in asset financing to the Integrated Rice Farmers Association of Nigeria, a group of rice farmers based in the Nigerian state of Nassarawa, for farming equipment intended to boost productivity. Continue reading

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MICROCAPITAL BRIEF: $10.4m Uganda Rural Challenge Fund to Issue Matching Grants to Financial Institutions Developing New Financial Products

The Uganda Rural Challenge Fund, the first part of the 3-year Rural Finance Enhancement Programme (RFEP) of German development bank Kreditanstalt für Wiederaufbau (KfW) Bankengruppe, recently was launched by German ambassador to Uganda Klaus-Dieter Duxmann. Continue reading

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MICROFINANCE PUBLICATION ROUND-UP: Global Mobile Money Adoption Survey, Eye Care for El Salvador’s “Base of the Pyramid,” Financial Needs in Rwanda

“State of the Industry: Results from the 2012 Mobile Money Adoption Survey;” by Claire Penicuad; published by Global System for Mobile Communications Association’s (GSMA’s) Mobile Money for the Unbanked program; 2012; 36 pages; available at http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2013/02/MMU_State_of_industry.pdf

This report presents the results of the Global Mobile Money Adoption Survey, launched by GSMA’s Mobile Money for the Unbanked program “to allow mobile money service providers to benchmark their performance against their peers in the industry.” Continue reading

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MICROCAPITAL BRIEF: Unit Trust of Tanzania Launches UTT Microfinance, Offering Loans up to $30k to Individuals, $1.23m to Businesses

Unit Trust of Tanzania (UTT), a government-owned investment institution, reportedly has launched UTT Microfinance, a microfinance unit that will charge 18 percent annual interest to borrowers and use mobile money platforms for the distribution and repayment of loans. Continue reading

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MICROCAPITAL BRIEF: Mennonite Economic Development Associates (MEDA) Maroc Launches “Financial Solutions Youth” Project in Morocco

Mennonite Economic Development Associates (MEDA), a Canada-based nonprofit that aims to alleviate poverty through financial investment via 227 partner institutions in 56 countries, and its Morocco division, MEDA Maroc, are launching the “Financial Solutions Youth” project in an effort to support Moroccan microfinance institutions (MFIs) in improving access to financial services for youth. Continue reading

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MICROFINANCE PUBLICATON ROUND-UP: Drivers of Over-Indebtedness in Cambodia, Accelerating Impact Investing, Mobile Banking in Tanzania

“Study on the Drivers of Over-Indebtedness of Microfinance Borrowers in Cambodia: An In-depth Investigation of Saturated Areas;” by Dannet Liv; published by BlueOrchard Microfinance Investment Management, Incofin Investment Management, Oikocredit; March 2013; 83 pages; available at: http://www.blueorchard.com/jahia/webdav/site/blueorchard/shared/Publications%20and%20Resources/News%20%26%20Press%20releases/OID-Final%20Report.pdf

This report presents an analysis of the factors that drive microfinance borrowers in Cambodia to take on excessive levels of debt. Continue reading

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MICROCAPITAL BRIEF: Ghana Association of Microfinance Companies, Star Microinsurance to Help Microbanks Offer Insurance

Ghana Association of Microfinance Companies (GAMC), an association with 560 member microfinance institutions (MFIs), and Star Microinsurance Services Limited, a Ghana-based insurance provider that serves approximately 550,000 clients, recently signed a memorandum of understanding regarding the provision of microinsurance products to clients of various MFIs. Continue reading

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MICROCAPITAL BRIEF: Democratic Republic of Congo Fights Corruption by Paying 1m Civil Servants via Mobile Banking

Since Prime Minister Augustin Matata Ponyo vowed in 2012 to replace all cash wage payments in the hopes of minimizing corruption, the Democratic Republic of Congo (DRC) has issued wage payments to 270,000 of 1 million civil servants via mobile banking. Continue reading

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MICROCAPITAL BRIEF: Nigeria’s Mutual Benefit Assurance Plc. Establishes Microfinance Bank In Effort to Drive Microinsurance

Mutual Benefit Assurance Plc, a Nigeria-based provider of insurance and other financial services, recently announced that it has established a microfinance bank (MFB) to promote its microinsurance offerings, which carry premiums as low as NGN 50 (USD 0.30) per three day period covering up to NGN 100,000 (USD 600) in hospital expenses and in the event of loss of life. Continue reading

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MICROCAPITAL BRIEF: Deutsche Investitions-und Entwicklungsgesellschaft, International Finance Corporation, African Capitalization Fund Buy 34% of UT Bank of Ghana for $23m

Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG), a German development finance institution; the International Finance Corporation (IFC), the commercial arm of the US-based World Bank Group, and the African Capitalization Fund (ACF), a US-based investment fund managed by IFC subsidiary IFC Asset Management Company, recently placed an equity investment totaling approximately GHS 46 million (USD 23.3 million) in UT Bank Limited, a publicly-traded Ghanaian bank that offers microfinance services and was formerly known as Unique Trust Financial Services. Continue reading

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