Category: Latin America

MICROCAPITAL BRIEF: AccessHolding Enters Latin America Acquiring 93% Equity Stake in Accion Microfinancas of Brazil

Access Microfinance Holding AG (AccessHolding), a German company that invests in microfinance institutions (MFIs), recently announced that it has acquired 93 percent of the equity in Accion Microfinancas SCMEPP SA, a Brazilian MFI that operates as a subsidiary of US-based nonprofit Accion. Continue reading

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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

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MICROCAPITAL BRIEF: Movistar, MasterCard Collaborate to Launch Mobile Money Service “Tu Dinero Móvil” in Peru

Movistar, the Spanish mobile phone operator owned by Telefónica S.A., and MasterCard, the US-based payments and technology company, recently launched “Tu dinero móvil” (Your mobile money), which reportedly is the first electronic money service operating in Peru [1]. The service will allow Movistar’s 16 million mobile users in Peru to perform financial transactions such as depositing and withdrawing money, refilling mobile balances and purchasing goods in the 65,000 establishments in Peru that are affiliated with MasterCard [2].  Continue reading

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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

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MICROCAPITAL BRIEF: Brazilian Development Bank (BNDES) Loans $100m to Banco do Nordeste do Brasil to Expand Microcredit

Banco Nacional de Desenvolvimento Econômico e Social (BNDES), the Brazilian government’s development bank, reportedly has announced that it will loan USD 100 million to Banco do Nordeste do Brasil (BNB), a public bank operating in Brazil’s Northeastern Region. Continue reading

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MICROCAPITAL BRIEF: Nestlé Dominican Republic, Multilateral Investment Fund, Asociación Dominicana para el Desarrollo de la Mujer (ADOPEM) to Develop Microfranchise Distribution Project in the Dominican Republic

The Multilateral Investment Fund (MIF), a member of the US-based Inter-American Development Bank (IDB), recently announced that it has partnered with Asociación Dominicana para el Desarrollo de la Mujer (ADOPEM), a microfinance institution (MFI) in the Dominican Republic, and Nestlé Dominican Republic, a unit of the Switzerland-based multinational food and beverage company, to develop a project that will give low-income women in the country an opportunity to operate micro-franchises to distribute Nestlé products in their communities [1]. Continue reading

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MICROCAPITAL BRIEF: Absolute Portfolio Management’s Vision Microfinance Funds Invest $8.5m in Microfinance Institutions in Cambodia, Costa Rica, Ecuador, Peru

Absolute Portfolio Management (APM), an arm of Austria-based asset management group C-Quadrat, recently informed MicroCapital that it disbursed credits totaling the approximate equivalent of USD 8.5 million from its two Vision Microfinance funds, the Dual Return Fund-Vision Microfinance and the Dual Return Fund-Vision Microfinance Local Currency, to unspecified microfinance institutions (MFIs) in Cambodia, Costa Rica, Ecuador and Peru. Continue reading

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MICROCAPITAL BRIEF: Mobile Services Firm Digicel Invests $5m in Bima to Promote Microinsurance in Asia-Pacific, Caribbean, Central America

Digicel, a Bermuda-based cellular network provider that operates in 30 markets in the Caribbean, Central America and the Pacific, recently invested USD 5 million in Bima, a Sweden-based mobile microinsurance provider that operates in Africa, Asia, the Caribbean, Central America and the Pacific, to expand microinsurance product offerings in the Caribbean and the Asia-Pacific region. Continue reading

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MICROCAPITAL BRIEF: International Finance Corporation (IFC) Purchases Entire $42m Issuance of Bonds by Rural Microfinance Institution Bancamía of Colombia

The International Finance Corporation (IFC), a member of the US-based World Bank Group that offers financial services to businesses and governments in developing countries with the aim of increasing economic growth, recently announced that it purchased the entire stake of ordinary bonds recently issued by Bancamía S.A. (Corporation), a Colombian microfinance institution (MFI). Continue reading

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MICROCAPITAL BRIEF: Développement international Desjardins (DID), Financière agricole du Québec-Développement international (FADQDI) to Offer Agricultural Microinsurance, Training in Colombia

Développement international Desjardins (DID), a Canadian nonprofit providing technical support and investment for the community finance sector in emerging economies, and Financière agricole du Québec – Développement international (FADQDI), a Canadian nonprofit that aims to promote rural economic development, recently announced that they will launch a joint project with the aim of supporting the agricultural sector in Colombia. Continue reading

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MICROFINANCE PAPER WRAP-UP: Peru, Colombia, the Philippines Top 2014 Global Microscope on Microfinance Business Environment

According to the Global Microscope on the Microfinance Business Environment 2014, a recent report by the UK-based Economist Intelligence Unit (EIU), Peru is the top country in enabling microfinance for the seventh consecutive year. Continue reading

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MICROCAPITAL BRIEF: Credit Suisse to Fund Opportunity International’s “Empowering Generational Change Through Education” in Africa, Asia, Latin America

Credit Suisse, a Swiss global financial services company with operations in 50 countries, has agreed to donate an undisclosed sum to Opportunity International, a US-based nonprofit providing microfinance in 22 countries, to launch a three-year program entitled “Empowering Generational Change Through Education” that focuses on lending for education initiatives. Continue reading

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MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Provide $18m to Peru-based La Positiva Seguros Generales through Convertible Subordinated Loan to Expand Insurance to Poor People

The International Finance Corporation (IFC), a member of the US-based World Bank Group that offers financial services to businesses and governments in developing countries with the aim of increasing economic growth, recently announced that it will provide USD 18 million to La Positva Seguros Generales, a Peru-based insurance company, through a convertible subordinated loan to expand the availability of insurance to disadvantaged populations within Peru. Continue reading

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MICROCAPITAL BRIEF: Absolute Portfolio Management’s Vision Microfinance Funds Invest $11m in Microfinance Institutions in Cambodia, Costa Rica, Ecuador, Kyrgyzstan, Mexico, India

Absolute Portfolio Management (APM), an arm of Austria-based asset management group C-Quadrat, recently informed MicroCapital that it disbursed credits totaling approximately USD 11 million from its two Vision Microfinance funds, the Dual Return Fund-Vision Microfinance and the Dual Return Fund-Vision Microfinance Local Currency, to unspecified microfinance institutions (MFIs) in Cambodia, Costa Rica, Ecuador, Kyrgyzstan, Mexico and India. Continue reading

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SPECIAL REPORT: Distinguishing Multiple Lending from Over-indebtedness at European Microfinance Week

“Multiple borrowing was endemic,” in Bangladesh as of 2008, says Shameran Abed, the director of microfinance at Bangladesh-based Brac International, “but we didn’t know if this was bad, although we knew it was a risk.” Mr Abed was speaking this morning at the opening plenary of the last day of European Microfinance Week, which is organized by the Luxembourgish NGO European Microfinance Platform (e-MFP). In the past, he explained, the members of borrowing groups were good at letting Brac staff know who was a good credit risk. As the market was getting saturated, “Groups became less cohesive, so we couldn’t totally rely on them to tell us if individuals were becoming overindebted.” Continue reading

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MICROCAPITAL BRIEF: Absolute Portfolio Management’s Vision Microfinance Funds Loan $1.5m to Microfinance Institution in Ecuador

Absolute Portfolio Management (APM), an arm of Austria-based asset management group C-Quadrat, recently informed MicroCapital that it has disbursed credits worth approximately USD 1.5 million to an unspecified microfinance institution (MFI) in Ecuador from its Vision Microfinance funds – the Dual Return Fund-Vision Microfinance and the Dual Return Fund-Vision Microfinance Local Currency [1]. Continue reading

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