MICROCAPITAL BRIEF: Myanmar Lowers Microloan Interest Rate Cap from 30% to 28%, Compulsory Savings Minimum from 15% to 14%

The Ministry of Planning and Finance of Myanmar reportedly decreed recently that microfinance institutions (MFIs) must start charging less for loans immediately. Daw Phyu Yamin Myat, the general secretary of the 107-member Myanmar Microfinance Association, reportedly stated that a minimum of

MICROCAPITAL BRIEF: 3,200 Graduate from Financial Literacy Course in Papua New Guinea (PNG) Under ADB-backed Microfinance Expansion Project

As part of the Microfinance Expansion Project (MEP), which is co-financed by the Asian Development Bank (ADB) and the governments of Australia and Papua New Guinea (PNG), 3,200 people in PNG recently completed a financial education program in the city of Wewak in the province of East Sepik. The goal of the training is to help people learn to use financial services and otherwise manage their finances. Since its inception in 2012, MEP has

MICROCAPITAL BRIEF: MASLOC Halves Interest Rates to 12% as Bank of Ghana Starts $172m Bailout of Microfinance Industry

The Ghanaian government’s Microfinance and Small Loans Centre (MASLOC), a provider of retail and wholesale microcredit, recently received approval to cut its annual interest rate from 24 percent to 12 percent. Meanwhile, the institution has received GHC 75 million (USD 14 million) from the government to expand its operations. This expansion includes a plan to have offices in 70 percent of the nation’s districts by the end of 2019 and

MICROFINANCE EVENT: MFC Annual Conference: “Demystifying Digital in Microfinance;” May 30 – 31, 2019; Istanbul, Turkey

The 22nd annual conference of the Poland-based nonprofit Microfinance Center (MFC) will focus on challenges and trends relating to digitalization in financial inclusion. In addition to traditional conference sessions, the event will include a Social Investors Fair and a Fintech Marketplace. Sample workshop topics include Responsible Digital Financial Services; Fintechs [Financial Technology Firms] and Financial Inclusion in Turkey and Beyond; and EU Funding for Microfinance. Pre- and post-conference events include

MICROCAPITAL BRIEF: Microfinance Institutions (MFIs) in Nicaragua Lose $30m During Year of Political Turmoil

La Cámara de Microfinanzas, a network of 27 microfinance institutions (MFIs) in Nicaragua that is also known as ASOMIF, recently reported that its members lost USD 30 million during 2018. Among the reasons cited for the decline are the country’s political unrest that began in April 2018 and

MICROCAPITAL BRIEF: Abaco Savings & Credit Cooperative of Peru Borrows $1.5m from Desjardins Fund for Inclusive Finance

Peru’s Abaco Savings & Credit Cooperative recently agreed to borrow USD 1.5 million for six years from the Desjardins Fund for Inclusive Finance, one of two funds of Développement international Desjardins (DiD), a member of the Canadian cooperative Desjardins Group. The subordinated loan is intended to support the growth of Abaco, as well as to

SPECIAL REPORT: SAM (African Microfinance Week) Scheduled for October 21-25, 2019, in Ouagadougou, Burkina Faso

Luxembourgish NGO ADA recently announced that the next SAM (Semaine Africaine de la Microfinance) will be held in Ouagadougou, Burkina Faso, from October 21 to 25, 2019. The themes for this fourth SAM include Agricultural Finance; Macro-Level Alignment with the UN Sustainable Development Goals; Digital Finance and Fintech; Cash Transfers; Gender Inequality; and Small & Medium Enterprise Development and Youth Employment. In addition to the conference sessions on October 22 and October 23, there will be an Investor’s Fair, an Innovator’s Fair, “Research Meets Africa” discussions and 20 free

SPECIAL REPORT: European Microfinance Week; November 20 – 22, 2019: Save the Date

The European Microfinance PlatformEuropean Microfinance Platform (e-MFP) will hold the next European Microfinance Week from November 20 through November 22, 2019, at the Abbaye de Neumunster in Luxembourg. This will include the presentation of the European Microfinance Award. Details on how to participate

MICROFINANCE EVENT: LendIt Fintech USA; April 8-9, 2019; San Francisco, California, United States

This conference on financial services innovation will cover topics such as the digitization of credit unions and community banks, payments innovation for small businesses, small business lending innovation, blockchain in financial services, financial health and inclusion, and policy and regulation.

MICROCAPITAL BRIEF: Government of Ghana Restores Losses to Customers of Failed Microfinance Institutions (MFIs), but $150m of Savings Remain “in Jeopardy” in Advance of Deposit-insurance Rollout

After the collapse of approximately 100 licensed microbanks in Ghana over four years, the country’s central bank, the Bank of Ghana, has announced it will refund deposits of up to GHS 10,000 (USD 2,000) per retail

MICROFINANCE PAPER WRAP UP: “Cyber Security in Emerging Financial Markets,” Published by CGAP

This is a summary of a paper by Hildah Nduati, published by CGAP (Consultative Group to Assist the Poor), May 2018, 8 pages, available at https://www.findevgateway.org/sites/default/files/publication_files/cybersecurity_in_emerging_markets_06-30.pdf

The availability of digital financial services (DFS) has altered the way many payments are collected and processed in developing countries. Ms Nduati argues that, although DFS have helped millions of people stabilize their income and break out of their stagnant socioeconomic positions, there remain many issues outstanding

MICROFINANCE PAPER WRAP UP: “A New Kind of Conglomerate: Bigtech in China,” published by Institute of International Finance

This is a summary of a paper published by the Institute of International Finance, November 2018, 33 pages, available at https://www.iif.com/portals/0/Files/private/chinese_digital_nov_1.pdf

This paper focuses on the five largest technology firms in China – Alibaba, Tencent, Baidu, Ping An and JD.com – and their reach into both the daily life and broader economy of China. The number of internet users in China

MICROFINANCE PAPER WRAP UP: “The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities;” published by International Monetary Fund (IMF), World Bank Group

This is a summary of a paper published by the International Monetary Fund (IMF) and the World Bank Group; October 2018; 43 pages; available at:
http://www.findevgateway.org/sites/default/files/publication_files/pp101118-bali-fintech-agenda_1.pdf

The authors of this paper, whose title refers to its release at a conference in Bali, Indonesia, argue that financial technology (fintech) offers emerging markets both opportunities and risks, including risks to “financial

MICROCAPITAL BRIEF: Government of Luxembourg Pledges $1.4m to UNCDF for Work Toward SDGs Including Microfinance

The government of the Grand Duchy of Luxembourg recently announced its 2019 contribution to support the UN Capital Development Fund (UNCDF) in working toward the UN sustainable development goals (SDGs) in least developed countries

MICROCAPITAL BRIEF: Bangladesh to Mandate More Bank Lending to Farmers at Interest Rates Below 10%

Bangladesh Bank, the central bank of the country, reportedly is drafting a policy to reduce the microloan interest rates that some farmers pay from a range of 20 percent to 25 percent to a range of 9 to 9.5 percent.

Banks currently must direct 2.5 percent

MICROFINANCE PAPER WRAP-UP: “Blended Finance 2.0: Giving Voice to the Private Sector;” by Maria Teresa Zappia, Nadina Stodie; published by BlueOrchard

This is a summary of a paper written by Maria Teresa Zappia and Nadina Stodie, published by BlueOrchard, 2018, 30 pages, available at: http://www.blueorchard.com/wp-content/uploads/181016_BlueOrchard_Blended_Finance-2.0.pdf

This paper focuses on research conducted by BlueOrchard, a Switzerland-based impact-investing firm, regarding how the public and private sectors can use “blended finance” to partner on achieving the UN’s Sustainable Development Goals (SDGs). Although work on the SDGs is dominated by the public sector, the authors argue for increasing

SPECIAL REPORT: A Model from Cambodia for Preventing Overheating – Not Just Multiple Lending; to be Presented at European Microfinance Week; November 14-16, 2018

Since European Microfinance Platform2016, the 95-member Cambodia Microfinance Association (CMA), Incofin, MIMOSA, the Credit Bureau of Cambodia, and several other stakeholders have been developing the CMA Lending Guidelines, under which microfinance institutions (MFIs) are working together to prevent over-indebtedness in Cambodia. The project is funded by Incofin, PROPARCO, BIO, FMO and ADA.

MicroCapital: How long have you been concerned about possible overheating in the Cambodian microfinance market?

Kea Borann: Concerns of the market overheating started at least as early as 2015. Since then, the total outstanding portfolio of the industry has been growing at an average of 25 percent per year, even as the number of loans has remained unchanged at 2.3 million. This seems to mean that the same clients are taking on more debt when their loans are renewed. The average loan size grew from USD 1,691 to

MICROFINANCE EVENT: Investing in Responsible Finance and Innovation for Africa’s Digital Economies; October 2, 2018; Dar es Salaam, Tanzania

Summary of Event: The Ninth Annual Responsible Finance Forum brings together investors, policymakers, practitioners, and innovators to discuss opportunities for growth as well as risks of abuse relating to digital financial services in Africa. Participants will learn about technology solutions and business models for accelerating