This paper explores the impact of the COVID-19 pandemic on past and potential future trends in international economic migration and remittances. The first section focuses on the general impact of the pandemic, considering topics such as changes in the earnings of migrant workers, declines in remittance flows and policy responses. The second section delves into the cost of remittances and migration patterns in six regions:
Category: Middle East
MICROFINANCE PAPER WRAP-UP: “The Impact of the COVID-19 Pandemic on Education Financing,” by Samer Al-Samarrai et al, published by the World Bank Group
This paper explores the economic implications of COVID-19 and arguments for mobilizing resources from government and development partners to alleviate educational losses in terms of educational services, student enrollment rates and student achievement. The authors also consider recent policy interventions and proposals in contrast to similar efforts made during past crises. The
MICROCAPITAL BRIEF: ADA, Grameen Crédit Agricole Foundation Respond to COVID-19 with Information Sharing, Funding, Partnerships
Luxembourg-based NGOs ADA (Appui au Développement Autonome) and the Grameen Crédit Agricole (GCA) Foundation have launched a range of resources in response to the COVID-19 pandemic including the following:
MICROCAPITAL BRIEF: J.P. Morgan, EBRD Deliver Advisory, Training Services to MSMEs Led by Women in Turkey
US-based financial services firm J.P. Morgan recently agreed to co-fund the Turkish operations of the Women in Business Programme of the UK-based European Bank for Reconstruction and Development (ERBD). Women in Business, which expanded to Turkey in 2014, supports micro-, small and medium-sized enterprises (MSMEs) operated by women in 18 countries. In Turkey, the support from J.P. Morgan will fund:
MICROCAPITAL BRIEF: Via Atlas, CGAP Begins Releasing Results from Biweekly “Pulse” Survey of Microfinance Institutions (MFIs) on COVID-19 Impact
In an effort to understand the needs of microfinance institutions (MFIs) and their clients during the COVID-19 pandemic, the US-based NGO CGAP (Consultative Group to Assist the Poor) recently launched a biweekly survey called the “Global Pulse Survey of Microfinance Institutions.” CGAP is releasing the results on the Atlas data platform, which is a service of Italy-based MFR (MicroFinanza Rating), in the form of 13 charts. These charts can be manipulated to group the data by
MICROCAPITAL BRIEF: EBRD Loans $100m to NBK Egypt for Short-term Financing Amidst Pandemic, with “Focus” on SMEs
The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral institution, recently loaned USD 100 million to the National Bank of Kuwait (NBK) Egypt, which provides Islamic and traditional financial services to consumers and corporations in Egypt. The loan will allow NBK Egypt to boost its short-term lending to businesses that are experiencing
MICROFINANCE PAPER WRAP-UP: “2020 Annual Impact Investor Survey,” by Dean Hand et al, published by the Global Impact Investing Network (GIIN)
The 10th edition of this survey includes responses from 294 impact investors, those that seek to “generate positive, measurable social and environmental impact alongside a financial return.” From the data the authors have collected, they reach the following conclusions:
MICROFINANCE PAPER WRAP-UP: “Increasing Financial Inclusion in the Muslim World: Evidence from an Islamic Finance Marketing Experiment;” by Dean Karlan, Adam Osman, Nour Shammout; published by the World Bank Group
In spite of the growth of the Islamic finance sector, which promotes loans, insurance and other services that comply with the religious laws known as Shariah, financial inclusion rates in predominantly Muslim countries remain low. In collaboration with Tamweelcom, a microcredit institution in Jordan, the authors analyze how the following factors influence people’s decisions to borrow:
MICROCAPITAL BRIEF: Sanad Technical Assistance Facility, Egyptian Credit Bureau I-Score Seek to Boost Finance for Farmers; Agricultural Micro-, Small, Medium-sized Enterprises (MSMEs) in Egypt
The Sanad Technical Assistance Facility, which is affiliated with the Luxembourg-domiciled Sanad Fund for MSME (Micro-, Small and Medium-sized Enterprise), has collaborated with the Egyptian Credit Bureau, also known as I-Score, to build an Agricultural Credit Evaluation and Risk Assessment System (ACERS). I-Score will implement this “web-based credit assessment and scoring tool,” with the goal of
SPECIAL REPORT: COVID-19 Edition of Financial Inclusion Compass Survey Launches – Looking at Challenges and Priorities of a Sector Under Threat – An Invitation to Participate
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the European Microfinance Platform (e-MFP): e-MFP has launched the third e-MFP survey of financial inclusion trends, but as a special edition focused solely on the challenges and priorities facing the sector as a result of the COVID-19 public health and economic crisis. Several months into this global crisis, with its critical threat to vulnerable populations, financial inclusion providers and the entire ecosystem that supports them, the scale of the challenges ahead is becoming increasingly clear, and stakeholders can think not just about the immediate effects, but their priorities in the medium term as the sector recovers from this and puts in place measures to
MICROCAPITAL BRIEF: 26 Inclusive Finance Players Pledge to Support Microfinance Institutions (MFIs), Clients Throughout Pandemic
At the initiative of the Luxembourg-based Grameen Crédit Agricole (GCA) Foundation, microfinance lenders and other operators in the inclusive finance sector have agreed to a set of “Key Principles to Protect Microfinance Institutions and Their Clients in the COVID-19 Crisis.” The commitment involves measures including: operating in a customer-centric manner, protecting staff members, sharing
MICROCAPITAL BRIEF: Netherlands Development Finance Company (FMO) Loans $5m to Vitas Palestine for Microfinance
The Netherlands Development Finance Company, which also is known by its Dutch acronym FMO, recently loaned USD 5 million to the microfinance institution (MFI) Vitas Palestine. FMO sourced the funding from MASSIF, an investment vehicle it manages for the Dutch government that is meant to
MICROFINANCE PAPER WRAP-UP: “Humanitarian Cash Transfers and Financial Inclusion, Lessons from Jordan and Lebanon;” published by CGAP
Since 2014, cash and voucher assistance (CVA) has played an important role in the management of humanitarian crises. Worldwide, CVA has grown to constitute
MICROCAPITAL BRIEF: Pakistan Launches Electronic Registry of Movable Assets, with Support from IFC
The Securities and Exchange Commission of Pakistan recently created an electronic registry to encourage the country’s banks, microfinance institutions (MFIs) and leasing companies to accept moveable assets as collateral for loans. The collateral registry will help these institutions “to register rights in moveable assets in offering credit to people, as well as micro-, small and medium-sized enterprises” (MSMEs). Moveable assets may include
MICROCAPITAL BRIEF: 40 Funders Commit $75m via World Economic Forum COVID Response Alliance for Social Entrepreneurs
The World Economic Forum, a Switzerland-based nonprofit, recently convened the COVID Response Alliance for Social Entrepreneurs, through which 40 organizations are aligning their efforts to reduce the economic and other impacts of the COVID-19 pandemic. These 40 organizations support 15,000 entrepreneurs who have served a total of 1.5 billion customers in 190 countries by “protecting livelihoods; mitigating millions of tonnes of carbon dioxide; improving access to health, sanitation, education and energy; [and having] driven social inclusion movements for the disabled, homeless or those with refugee status.”
The alliance members have committed a total of USD 75 million in response to the pandemic. In addition, they are working together to assess needs; increase recovery funding; coordinate legal, technological and
MICROCAPITAL BRIEF: 9 Microfinance Investment Vehicles Coordinate Response to Effects of Pandemic on MFIs, MSMEs in 80 Countries
The COVID-19 pandemic and efforts to reduce its health impacts have had major negative economic consequences for micro-, small and medium-sized enterprises (MSMEs). These enterprises thus are having difficulty repaying the loans they have outstanding from microfinance institutions (MFIs) and other retail lenders, leading to liquidity challenges for these lenders. In response, nine investors in these lenders, which have an aggregate of USD 15 billion invested in 80 low- and middle-income countries, are working together to support the long-term viability of the retail financial services providers (FSPs).
The nine investors, which manage a range of microfinance investment vehicles (MIVs) and other funds seeking to generate positive social impact, have arrived at a non-binding agreement to
MICROCAPITAL BRIEF: Calvert Impact Capital Opens $15m Credit Line for FINCA, Owner of 20 Microfinance Institutions (MFIs)
Calvert Impact Capital, a US-based NGO, recently opened a five-year credit line of USD 15 million for FINCA Impact Finance to use in support of its 20 microfinance institutions in Africa, the Americas and Eurasia. The funding is available for on-lending to micro- and small enterprises (MSEs) as well as for
MICROCAPITAL BRIEF: In Response to COVID-19, Western Union Transitions to Home Delivery of Money Transfers in Jordan
The Western Union Company, a US-based financial services and communications firm, recently announced that the company’s agents will deliver money transfers directly to customers’ homes in Jordan. Each delivery is to occur within