by the MicroCapital Team -

SPECIAL REPORT: Saluting MFI Staff, Promoting Flexible Products, “Keeping the Client at the Heart” as European Microfinance Week Closes

e-MFP logoA panel of microfinance luminaries shared their moments of pride and disappointment at the closing plenary of this year’s European Microfinance Week. Yannick Milev of the Cambodian microfinance institution Chamroeun expressed his admiration for the staff members of Chamroeun, who continued to work through the COVID-19 pandemic at significant risk to their and their families’ health because “stopping operations completely would have had a terrible effect on us and on our clients.” Mr Milev added that Chamroeun issued many loans during the early days of the pandemic to help clients diversify in response to the economic effects of COVID-19.

Marc Labie of Belgium’s University of Mons described the pandemic as “a chance for the industry to

by the MicroCapital Team -

SPECIAL REPORT: Financial Inclusion for Women Requires Engaging All Levels of the Microfinance Institution

e-MFP logoDuring a plenary session on financial inclusion for women at European Microfinance Week 2022, the presenters highlighted the need to collect and use good data. Not only must financial services providers (FSPs) disaggregate data by gender, but they must segment it further, as not all women have the same needs. Mary Ellen Iskenderian of Women’s World Banking cited the example of regulators in Chile realizing their data pointed to a need for housing loans, which the entity then successfully encouraged FSPs to develop.

Carine Roenen of Fonkoze Foundation spoke to the importance of rich data – not just numbers but qualitative data as well. Fonkoze has had success encouraging line staff to report important client experiences to supervisors. For example, when thieves started targeting clients

by the MicroCapital Team -

SPECIAL REPORT: Agents for Impact: Well-equipped for Future Business Development

Agents for Impact GmbH (AFI), which acts as an intermediary be­tween investors and the world of impact investing, successfully has won FS Invest Holding as an investor. With an eye on the long-term, as of August 2022, FS Invest took a 75-percent stake in our consulting bou­tique, which is focused on sustain­ability, impact investing and financial inclusion.

FS Invest is part of the Helmig family’s group of companies, which is already active in sev­eral other holdings in the financial sector, in­cluding through its ATON Group.

“We are pleased to have an experienced investor at our side that will carry Agents for Impact into the future and enable us to expand our business,” says Dr Andrij Fetsun, AFI’s CEO (pictured).

About AFI

AFI was founded in 2018 by Dr Fetsun and Ms Edda Schröder with the purpose of: (1) increasing impact investments in emerging and developing markets by building bridges between impact investors and the world of impact investing in order to enable financial inclu­sion for under­served populations across the world; and (2) contri­buting to the UN Sustainable Development Goals (SDGs) with the help of the firm’s proprietary SDG rating system, the Agents for Impact Sustainability Alignment Rating (AFISAR©) Tool.

AFISAR© helps microfinance institutions (MFIs) leverage the growing importance of strong sus­tainability performance vis-à?vis international investors, particularly im­pact investors. The rating tool analyses an MFI’s operations (at both the institu­tional and portfolio levels) based on a compre­hensive set of

by Renata Samadova -

MICROFINANCE PAPER WRAP-UP: “A Brief Introduction to WASH for Impact Investors;” by Joana Afonso, Sachin Kumar, Alvaro Ma; Published by e-MFP, Aqua for All

This report on funding water, sanitation and hygiene (WASH) cites the UN’s Sustainable Development Goal (SDG) 6 – Clean Water and Sanitation – as well as data indicating 3.6 billion people worldwide have limited access to

by the MicroCapital Team -

SPECIAL REPORT: Agents for Impact Sustainability Alignment Rating (AFISAR©): Applying a Gender-smart Approach in the Microfinance Sector

UN Sustainable Development Goal (SDG) 5, “Achieve Gender Equality and Empower All Women and Girls,” is not only a standalone goal but is inextricably linked to the other SDGs. Though moving toward gender equality has long been associated with achieving social or political goals, its proven economic benefits remain under-appreciated. Accord­ing to the World Bank’s 2021 Global Findex Database, more than 1 billion women worldwide still lack access to the financial system. In fact, wo­men make up the largest unbanked population in the world, with more than 70 percent of woman-owned small and medium-sized enterprises estimated to have inadequate or no access to financial services. The financial gap just for women-owned formal small businesses is estimated to be USD 300 billion.

In the absence of financial tools, women face difficulty generating income, boosting savings, growing businesses and improving the living conditions of their families. If the am­bitious targets set within the SDGs are to be achieved, then a concerted effort is required to

by Renata Samadova -

MICROFINANCE EVENT: MEDA Convention: Celebrating Entrepreneurship; November 2-6, 2022; Lancaster, Pennsylvania, USA

With the aim of advancing the success of entrepreneurs, this event offers plenary sessions such as: (1) Revolutionizing Investment in Sub-Saharan Africa: Bridging the Finance Gap for Women Entrepreneurs; and (2) Food Security: Addressing the Risks in Our Global Food Systems and What It Means for Entrepreneurs. On November 5, the MEDAx Pitch Competition offers prizes

by Benjamin Greissman -

MICROFINANCE PAPER WRAP-UP: “Agri-SME Finance: Navigating Volatility in the Wake of the War in Ukraine;” Published by IFAD, IFC, SAFIN

The authors describe the recent turmoil in global food markets and the resulting “worst food crisis in generations.” The war in Ukraine has had a major impact on markets in Russia and Ukraine, which together previously produced a quarter of the wheat and most of the sunflower oil sold worldwide. Meanwhile, increases in

by Renata Samadova -

MICROFINANCE EVENT: International Conference on Inclusive Insurance (ICII); October 24-28, 2022; Kingston, Jamaica

The upcoming iteration of this event – the first in-person since 2019 – will include 26 sessions on the increasing role of insurance in developing markets. The first day features pre-conference workshops such as:

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “Leveraging Digital ID and e-KYC for the Financial Inclusion of Forcibly Displaced Persons: Risks and Opportunities;” Published by Alliance for Financial Inclusion

The authors of this paper discuss the use of electronic know-your-customer (e-KYC) procedures and digital forms of identification (ID) to support financial inclusion for forcibly displaced persons (FDPs) in Eswatini, Mauritania and Rwanda.

In Eswatini, refugees and asylum-seekers may apply for refugee ID cards and non-Swazi ID cards, respectively. After acquiring IDs, individuals may access

by the MicroCapital Team -

SPECIAL REPORT: Pratibha Singh of Agents for Impact, Arunkumar Padmanabhan of Svasti 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. AFISAR© 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 conversation below outlines the AFISAR© rating process carried out in the “direct partnership” format by a leading MFI like Svasti Microfinance. Direct partnership offers a conti­nu­ous and immersive experience to facilitate sustain­able transi­tions. The active dialogue and engagement embedded in the AFISAR© process enable the MFI as well as asset mana­gers to embark on a journey that leads to long-term sustainable develop­ment. AFI highly values long-term partnerships with organizations sharing our mission of achieving the UN SDGs. We take this so serious­ly that a rating above the sustain­ability threshold is required for the disbursement funds.

To date, AFI has used AFISAR© to rate 35+ microfinance and SME finance institutions in 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?
Arunkumar Padmanabhan: I was a lawyer and had worked for some years with ICICI Bank. Based on that experience, I wanted to set up a com­mercial business in the social impact space. We started in the slums of Mum­bai, and now we have expan­ded to eight states in India with 220,000 borrow­ers across 120 branches.

PS: What makes the Svasti model unique?
AP: The key to success in this field is based on three aspects: people, process and technology. Our vision follows the “people-first” approach. Tech­nology and innovation are driving forces as well, and we have built all of our systems from the ground up. That gives us a signifi­cant competitive advantage. Meanwhile, we have focussed on client protection and social impact from a very early stage in our develop­ment. With AFISAR©, we have become one of the few companies that is measuring its perfor­mance based on the SDGs. Constantly trying to improve in impact-driven areas is of great strategic importance.

PS: What is at stake for
by the MicroCapital Team -

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

by Vighnesh Avadhanam -

MICROFINANCE EVENT: SOCAP22; October 17-20, 2022; San Francisco, California, USA

This event has been held each year since 2008. Although the 2022 agenda has not been announced yet, SOCAP21 included panels on topics such as: “The New Tech-touch Balance: How to Deliver Inclusive Fintech (Financial Technology) Solutions for Underserved Populations,” “Driving Social Impact by

by Adhya Singh -

MICROCAPITAL BRIEF: InsuResilience Investment Fund Acquires 40% Equity Stake in Ghana-based Insurance Company Vanguard

Switzerland’s BlueOrchard Impact Investment Advisors recently disbursed an undisclosed sum from the InsuResilience Invest Fund (IIF), a Luxembourg-domiciled public-private partnership, for IIF to buy 40 percent of the shares of Vanguard Assurance, an insurer in Ghana that provides microinsurance as well as traditional coverage. The deal, under which IIF controls multiple seats on Vanguard’s Board of Directors, is intended to grow

by the MicroCapital Team -

MICROFINANCE EVENT: World Finance Conference; August 1-3, 2022; Turin, Italy

This conference promotes the exchange of ideas in research, teaching and managerial practices relating to finance, economics and banking. Although the detailed agenda for this year has not yet been finalized, the last iteration of the event included topics such as microsavings, interest rates,

by the MicroCapital Team -

SPECIAL REPORT: Measuring Impact with Agents for Impact’s AFISAR Tool

Agents for Impact: Driving Positive Impact… Together!

The 17 Sustainable Development Goals (SDGs) outlined by the UN in 2015 provide a blueprint for a just and sustainable world. While actors across a range of professional arenas are rushing to catch up with the SDGs, the term “impact” is being thrown around loosely to give the impression that the desired goals have been reached. It is tempting to assume certain businesses have a positive impact on the SDGs, simply based on intuition. However, some might negatively impact the SDGs or elicit both positive and negative outcomes in the long run. Without proper tools for impact measurement and assessment, we can only get so far!

Agents for Impact (AFI) understands how essential it is to improve the practice of impact measurement through stable and coherent frameworks. To deliver on this promise, we have designed a specialized investment approach to support microfinance institutions (MFIs) that exhibit strong commitment to and proven track records of progress toward the SDGs. To evaluate an MFI’s performance, AFI peels back the surface to deploy a strong assortment of cohesive and rigorous assessment tools, including financial analysis and addressing social performance indicators; sustain­ability factors; and

by the MicroCapital Team -

SPECIAL REPORT: Agents for Impact: Driving Positive Impact… Together!

Founded in 2018, we are a Germany-based impact investing company. Agents for Impact (AFI) offers pre­mium impact invest­ment solutions, sustainability consul­ting and impact measurement services tailor-made for clients in the sustainable finance industry.

We provide our partners with a combination of expertise and experience across the following three pillars: RISK – RATING – RESEARCH.

We have Agents spread across Africa, India, South­east Asia, Central Asia and Europe, each with in-depth technical expertise and located in close geographical proximity to our key partners and target countries to ensure optimal support.

We pride ourselves on being the partner of choice for impact investors and financial services pro­viders (FSPs) seeking innovation and cooperation. Together with these partners, we pursue positive impact, contributing