Impact Asset Management (I-AM), a member of the Austria-based C-Quadrat Investment Group, recently disbursed loans from Vision Microfinance and Vision Microfinance Local Currency, the two sub-funds of the Dual Return Fund family, that total the equivalent of
Category: Eastern Europe and Central Asia
SPECIAL REPORT: AFI SDG Rating Analyst Pratibha Singh, FINCA Tajikistan CEO Sergey Kim Discuss the AFISAR Rating, Microfinance, Impact and Much More!
This is part of a series of features sponsored by Agents for Impact (AFI), a German impact investing firm whose products include the AFI Sustainability Alignment Rating (AFISAR©) Tool. The AFISAR© rating is a trust mark – in microfinance and other forms of social business – signifying a commitment to positive and enduring change for people and the planet based on the UN Sustainable Development Goal (SDG) framework.
AFISAR© helps MFIs leverage the market’s growing focus on sustainability performance to raise capital from international investors and, particularly, impact investors. The rating helps investors and social businesses understand their strengths and weaknesses and devise effective strategies to minimize negative impact and maximize positive impact to the benefit of the organization – its employees, clients and other stakeholders – as well as the environment.
The active dialogue and engagement embedded in the AFISAR© rating process enables the MFI as well as asset managers to embark on a journey that leads to long-term sustainable development. A rating above the sustainability threshold on the scale (see below) is favorable for the disbursement funds. To date, AFI has used the AFISAR© Tool to rate 30+ microfinance and SME finance institutions in the Caucasus, Central and South Asia, East Africa and Eastern Europe, helping the institutions demonstrate their SDG competency and alignment.
Pratibha Singh (pictured): How did you become interested in microfinance?
Sergey Kim: My professional career started in 1998 in the field of microfinance. I was working as a loan officer for a UN microcredit project, which made it possible for me to have a close look at the ground-level realities concerning credit operations. After finishing my graduate degree, I chose FINCA because the job was close to people.
I have worked with FINCA since 2006 and have been in Tajikistan for the last 12 years. FINCA Tajikistan has been active since 2004 and is now amongst the top
MICROCAPITAL BRIEF: Green for Growth Fund Lending MF Banka $5.5m to Promote Renewable Energy, Efficiency Among SMEs in Bosnia and Herzegovina
The Green for Growth Fund (GGF), a public-private partnership registered in Luxembourg, recently partnered with MF Banka a.d. Banja Luka, a bank that primarily serves small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina, to expand the bank’s lending for energy efficiency and renewable energy projects. MF Banka is borrowing EUR 5 million (USD 5.5 million) from GGF to fund
MICROFINANCE EVENT: 24th MFC Annual Conference: Microfinance Investing Through Uncertainty; June 29-30, 2022; Istanbul, Turkey
The conference is slated to cover investment opportunities and other strategies for addressing “gender, green finance and technological challenges” related to inclusive finance in the context of the COVID-19 pandemic. The event features seminars with titles such as
MICROFINANCE EVENT: 3rd CIS Islamic Banking and Finance Forum; May 25-27, 2022; Baku, Azerbaijan
The organizers of this forum aim to promote Islamic finance in the nine-member countries of the Commonwealth of Independent States (CIS). Islamic finance is that which is compliant with Shariah law, such as by an investor sharing profit and loss rather than charging interest for a loan. The main event is on May 25, followed by a post-event workshop on May 26 and May 27. The topics on the agenda for the first day of the forum include takaful – Islamic insurance – as well as how Islamic
MICROCAPITAL BRIEF: PayPal Expanding Money Transfer Options, Waiving Fees in Ukraine; Cutting Service in Russia
The US-based money transfer firm PayPal recently announced that Ukrainians in their home country and elsewhere will be able to receive British pounds, Canadian dollars, euros and US dollars into PayPal accounts to make purchases or transfer funds to bank accounts, credit cards and debit cards. Previously Ukrainians could
MICROCAPITAL BRIEF: EBRD Moves to Block Russia, Belarus from Funding, Technical Assistance; Boost Financing in Ukraine
In response to hostilities in Ukraine, the Board of Directors of the European Bank for Reconstruction and Development (EBRD), a UK-based multilateral development finance institution, recently proposed to the institution’s Board of Governors that it cut off assistance to Russia and Belarus, both of which are EBRD members. EBRD has outstanding investments of about EUR 900 million (USD 980 million) in each country as of January 2022. EBRD also is considering participating in
MICROCAPITAL BRIEF: Bailyk Finance Borrows from Incofin for On-lending to Small-scale Entrepreneurs, Farmers in Kyrgyzstan
Belgium’s Incofin Investment Management recently provided a loan of an undisclosed amount to Kyrgyzstan-based Bailyk Finance to support the microlender’s mission “to create affordable financial solutions for rural and small cities’ residents to improve their quality of life.” Established in 2011, Bailyk provides microloans and associated insurance for consumption, enterprise, farming, housing, solar energy, medical and other purposes to 45,000 consumers – mostly women – through 43 offices. The company’s loan formats include
MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lends $1.1m in Local Currency to Asian Credit Fund for Housing, Enterprise Microfinance in Rural Kazakhstan
The Luxembourg-based Grameen Credit Agricole (GCA) Foundation has announced it lent local currency approximately equivalent to USD 1.1 million to the microfinance institution Asian Credit Fund (ACF) of Kazakhstan for a term of three years. Founded in 1997 by the US-based NGO Mercy Corps, ACF provides financial and non-financial services supporting rural development, small business, and home ownership. These services include
MICROCAPITAL BRIEF: MFC, UNHCR to Convene Working Group on Access to Microfinance, Business Development for Refugees in Europe
The Microfinance Centre (MFC), a network of 95 microfinance providers in Europe and Central Asia, and the UN High Commissioner for Refugees (UNHCR) recently launched a project to support refugees in Europe by helping them become self-reliant via access to microfinance and business services. The partners will build a working group of financial services providers, regulators and other stakeholders
MICROCAPITAL BRIEF: Grameen Crédit Agricole Foundation Invests Local-currency Equivalent of $650k in Moldova’s Smart Credit
The Grameen Crédit Agricole (GCA) Foundation, a funder based in Luxembourg that promotes “financial inclusion and social impact entrepreneurship,” has granted local currency approximately equivalent to USD 650,000 to Smart Credit, a Moldovan microfinance institution. Founded in 2010, Smart Credit offers insurance products covering
MICROCAPITAL BRIEF: Lazika Capital of Georgia Borrows $1.6m in Local Currency from Grameen Crédit Agricole Foundation for Agricultural Lending, Microfinance
Lazika Capital, headquartered in western Georgia, has acquired loans totaling the approximate local-currency equivalent of USD 1.6 million from the Grameen Crédit Agricole (GCA) Foundation, whose head office is in Luxembourg. Established in 2000 by the British member of the NGO Stichting Oxfam International, Lazika is a
MICROCAPITAL BRIEF: European Investment Bank Launches EIB Global to Expand in Africa, Asia, Latin America
The EU’s European Investment Bank (EIB) recently launched a new unit, EIB Global, to expand its operations in Africa, Asia and Latin America with support from Team Europe, an initiative launched by the EU to help countries worldwide adjust to the COVID-19 pandemic. To support its expanded geographic scope,
MICROCAPITAL BRIEF: Microinvest of Moldova Borrows $3.4m from IIV for Microfinance, SME Lending
Agents for Impact (AFI), a Germany-based impact investing company, recently informed MicroCapital that it has lent the second of two tranches to Microinvest, a lender to households as well as small and medium-sized enterprises (SMEs) in Moldova, on behalf of Germany-based Invest in Visions (IIV). The disbursement of EUR 3 million (USD 3.4 million) completes an agreement between the parties valued at
MICROFINANCE EVENT: Webinar: How Technology Drives Financial Inclusion in Tajikistan – A Case Study of Humo Lab; January 20, 2022
Sponsored by Gojo & Company: Gojo is hosting this webinar to share how Microfinance Deposit Organization Humo, its newest partner company, has established Humo Lab to spearhead digitalization and innovation. At Humo Lab, several products have been developed and launched, including mobile banking apps, payment apps, kiosks and more. The webinar will focus
MICROCAPITAL BRIEF: EBRD Loans $5.6m to Banka per Biznes to Boost Competitiveness of SMEs in Kosovo
The European Bank for Reconstruction and Development (EBRD), a multilateral development finance institution, recently loaned EUR 5 million (USD 5.6 million) to Banka per Biznes, a commercial bank based in the city of Pristina, Kosovo. The loan is a joint initiative of EBRD and the EU under the Western Balkans SME Competitiveness Support Programme, which supports small and medium-sized enterprises (SMEs) in accessing markets in the Western Balkans – and Europe in general – by encouraging investment in “environmental
MICROCAPITAL BRIEF: AEB Onlending $5.7m from EBRD, EU to SMEs in Armenia, Mostly for “Green” Investments
The European Bank for Reconstruction and Development (EBRD), a UK-based development finance institution, recently agreed to lend EUR 5 million (USD 5.7 million) to Armeconombank (AEB), an Armenian bank. The purpose is to finance small and medium-sized enterprises (SMEs) in acquiring technology that will upgrade employees’ working conditions, boost competitiveness and increase exports – including by reaching EU standards. AEB has agreed to direct at least 70 percent of the loan proceeds to
MICROCAPITAL BRIEF: Agents for Impact Loans $3m from Invest in Visions to Imon International for Microfinance in Tajikistan
Two German impact investment firms, Agents for Impact (AFI) and Invest in Visions (IIV) recently collaborated to disburse USD 3 million in loan funds to Imon International, a microfinance institution (MFI) in Tajikistan. Imon offers individuals as well as small and medium-sized enterprises loans, savings, internet banking and