SPECIAL REPORT: The Business Case for Education Finance #EMW2023

e-MFP logoMany families in low- and middle-income countries send their kids to low-cost private schools because the government is not meeting the need. However, many of these schools are not registered as businesses and don’t keep good records, so it is hard for them to borrow from banks to improve their facilities. Meanwhile, about one in five school-aged children – 260 million worldwide – are not in school.

Varthana is a lender in India that specializes helping schools expand. Its loans are often in the range of USD 20,000 to USD 100,000. The firm has developed a track record and so now is able to

SPECIAL REPORT: Digitizing Microfinance to Meet Customer Needs via an Incremental Approach #EMW2023

e-MFP logoAt today’s European Microfinance Week panel on transforming microfinance institutions (MFIs) into digital financial services providers, the focus was on meeting customer needs – not just implementing digital products, but attaining measurable success for clients and MFIs. Given that 80 percent of many microfinance portfolios comprises renewals, the renewal of microloans is a great process to digitize. This can free up staff to focus on recruiting new clients.

The consensus of the panelists was that going digital cannot be addressed primarily as a technology problem; rather it must be looked at as a business problem. The Vitas Group of Middle Eastern MFIs made the conscious choice to build a parallel system rather than

SPECIAL REPORT: Green Action Group Celebrates 10th Anniversary at European Microfinance Week #EMW2023

e-MFP logoToday’s opening plenary of European Microfinance Week included a celebration of the accomplishments of the European Microfinance Platform’s (e-MFP’s) Green Inclusive & Climate Smart Finance Action Group. The group has grown to 150 people and still is accepting new members.

One of the main outputs of the group is the Green Index, which helps financial services providers (FSPs) evaluate their performance in terms of green inclusive finance. The Action Group introduced the index in 2014 and most recently updated it in 2022. One of the group’s most recent outputs is the

SPECIAL REPORT: European Microfinance Week 2023 Opens With Action Group Meetings, Including Investors Sharing Strategies for Measuring Social Performance #EMW2023

e-MFP logoThe first day of European Microfinance Week 2023 began this morning with meetings of several of the European Microfinance Platform’s (e-MFP’s) Action Groups. At the Investors Action Group session, Cécile Lapenu of CERISE discussed the recent increase in demand for accountability regarding claims of positive client impact. What really makes an investor an impact investor? How can we measure impact in a way that is convincing and also efficient?

The recently published 60 Decibels Microfinance Index 2023 addresses some of these questions. The study, which is based on a survey of 32,000 microfinance clients in 32 countries, indicates that access to financial and non-financial services other than credit leads to deeper impact. Regarding credit services, group lending is associated with

MICROCAPITAL BRIEF: Liberation Community Finance Expanding Branch Network, Product Lineup for Farmers, Women, Youth in Uganda

Liberation Community Finance (LCF), a microfinance institution (MFI) in Uganda, has several new initiatives:

– a partnership with Uganda’s Agricultural Business Initiative (aBi) to develop environmentally sensitive financial products for LCF’s clients who farm crops such as maize and pumpkins;

– a Women Commander model through which women who borrow in groups can earn commissions for monitoring loan repayments and recruiting additional borrowers; and

– a partnership with Uganda’s

MICROCAPITAL BRIEF: OPEC Fund Lending $22m to Raiffeisen Bank for SMEs in Albania

As its first loan to a financial institution in Albania, the Austria-based OPEC Fund for International Development recently channeled EUR 20 million (USD 21.7 million) to the Albanian unit of Raiffeisen Bank to provide loans to small and medium-sized enterprises (SMEs) in the country. The scheme especially targets

MICROCAPITAL BRIEF: Aflatoun, Fintech Robos to Collaborate on Financial Literacy in Middle East, North Africa

The Dutch NGO Aflatoun International and Bahrain-based financial advisory firm Fintech Robos recently agreed to collaborate on their efforts to expand financial literacy in the Middle East and North Africa (MENA). The partners plan to promote financial education through the development of “curriculum and training materials”

MICROCAPITAL BRIEF: Opportunity International, UPS Foundation Announce “Unstoppable Women Initiative” to Expand Financial Services in Colombia, India, Indonesia, Nigeria

Two US-based NGOs, Opportunity International and the UPS Foundation, recently partnered to launch the Unstoppable Women Initiative to support female entrepreneurs in underserved communities in Colombia, India, Indonesia and Nigeria. The program includes training, business support and

MICROCAPITAL BRIEF: UNI2 Microcrédito of Colombia Raises $3m in Debt from Triodos Microfinance Fund, Triodos Fair Share Fund

Netherlands-based Triodos Investment Management recently disbursed a total of USD 3 million from its Triodos Microfinance Fund and Triodos Fair Share Fund to UNI2 Microcrédito, a Colombian microfinance institution (MFI), to support the growth of the MFI’s loan portfolio. Established in 2014, UNI2 provides microcredit for purposes such as

MICROCAPITAL BRIEF: Online Today in Spanish, November 22 in French – JuST Institute Announcing Mentoring Program for MFIs Embracing Biodiversity, Climate Adaptation

The France-based NGO Just Sustainability Transitions (JuST) Institute is launching a mentoring and training program for financial services providers (FSPs) looking to orient their work toward “climate adaptation and biodiversity conservation.” The program, which is for loan officers and their managers, takes place online over a period of four to six months. Participation can be part of an MFI becoming certified for

MICROCAPITAL BRIEF: DAI’s MicroVest Loans $4m to Bayport Colombia, Payroll Lender to Public Sector Workers

US-based MicroVest, a unit of Development Alternatives Incorporated (DAI), recently lent USD 4 million to Bayport Colombia, a financial services provider seeking to “expand credit accessibility and financial empowerment” among public sector employees. This transaction marks MicroVest’s third investment in Bayport since 2016.

Established in 2007, Bayport Colombia lends to employees

MICROFINANCE EVENT: Skoll World Forum; April 9-12, 2024; Oxford, United Kingdom

This annual gathering focused on using entrepreneurship to effect change around global challenges such as climate change and healthcare will take place both in-person and online. The detailed agenda has not been released, but the 2023 iteration included sessions including:

MICROCAPITAL BRIEF: World Bank ARISE Program Includes $230m Loan for Farmers in Ukraine

The Ukraine Agriculture Recovery Inclusive Support Emergency (ARISE) Project – to be implemented by Ukrainian government’s Business Development Fund and Ministry of Agrarian Policy and Food – is intended to provide loans and grants to 90,000 farmers to increase production levels during 2023 and 2024. The project includes a loan of USD 230 million from the World Bank, supported by the

MICROCAPITAL BRIEF: Michael Apel Named CEO of DAI’s MicroVest Asset Management

The US-based impact investing firm MicroVest recently selected Michael Apel as its new CEO and Chief Investment Officer. In taking on these roles, Mr Apel will be in charge of the company’s daily operations, including entering into new markets to expand the company’s deployment of private capital to boost micro-, small and medium-sized enterprises (MSMEs). Mr Apel has 25 years of experience at IDB Invest,

MICROCAPITAL BRIEF: Baobab+, TradeLenda Partner on Solar Energy Solutions for SMEs in Nigeria

Baobab+, a French energy and technology company active in six African countries, recently partnered with TradeLenda, a Nigerian financial services company serving small and medium-sized enterprises (SMEs), to expand lending to SMEs to buy solar generators, freezers and refrigerators. SMEs will be able to

MICROFINANCE PAPER WRAP-UP: “The Global State of Financial Inclusion and Consumer Protection 2022,” by Buddy Buruku et al, published by the World Bank Group

This update of similar reports published in 2013 and 2017 covers legal and regulatory issues related to financial inclusion and consumer protection across the world. The authors surveyed financial regulators and supervisors across 130 economies.