by the MicroCapital Team -

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

by Madigan Ruch -

MICROCAPITAL BRIEF: Aviator EMF Invests $3.1m in Midland Microfin for Microfinance for Women in India

Aviator Emerging Market Fund (EMF), a Mauritius-based entity, recently invested USD 3.1 million in Midland Microfin Limited, a microfinance institution (MFI) that provides women in India with small business loans and insurance services. Most of the loans that the MFI issues are

by the MicroCapital Team -

MICROCAPITAL BRIEF: Center for the Advancement of Social Entrepreneurship (CASE) Offers Covidcap.com Database of $1t in Cash Relief for Small Businesses Impacted by COVID-19

The US-based Center for the Advancement of Social Entrepreneurship (CASE) recently created a database of funding sources for small businesses needing assistance because of the COVID-19 pandemic. These listings include 550 funding sources in 62 countries offering a total of approximately USD 1 trillion. This funding takes the form of loans and grants and is available to

by the MicroCapital Team -

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

by Madigan Ruch -

MICROCAPITAL BRIEF: Reserve Bank of India Moves to Increase Liquidity for MSMEs, Farmers Impacted by COVID-19 via MFIs, NBFCs

In response to the COVID-19 pandemic, the Reserve Bank of India (RBI), India’s central banking authority, recently moved to increase the supply of credit to farmers and micro-, small and medium-sized enterprises (MSMEs) via microfinance institutions (MFIs) and non-banking finance companies (NBFCs). These steps include

by the MicroCapital Team -

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

by Madigan Ruch -

MICROCAPITAL BRIEF: BlackRock Launches $20m Global Impact Fund Investing in Companies Working Toward UN Sustainable Development Goals

BlackRock, an investment management firm based in the US city of New York, recently launched its Global Impact Fund with USD 20 million in assets. The goal of the fund is to generate returns through long-term capital growth as well as income. BlackRock will invest at least

by Madigan Ruch -

MICROCAPITAL BRIEF: MFIs in Bosnia and Herzegovina, Georgia, India, Panama, Tajikistan, Uzbekistan Refinance $38m in Microloans via Sales to IIV Mikrofinanzfonds

Microfinance institutions (MFIs) in six countries recently sold non-securitized loan claims for USD 7.8 million-plus EUR 28 million (USD 30.4 million) to IIV Mikrofinanzfonds, a fund managed by Germany-based Invest in Visions (IIV). While the MFIs have not been named, they are located in

by Kiersten Greene -

MICROCAPITAL BRIEF: Palau, TaiwanICDF Partner to Lend to MSMEs, Provide Business Training with Foci on Young Entrepreneurs, Women

Two government institutions, the National Development Bank of Palau (NDBP) and Taiwan’s International Cooperation and Development Fund (TaiwanICDF), recently crafted a financial inclusion plan

by Simrun Kothari -

MICROCAPITAL BRIEF: Cambodia Implements $100m Co-financing Scheme for Small and Medium-sized Enterprises (SMEs) in Partnership with Private Banks, Microfinance Institutions

Through its SME Bank, Cambodia’s Ministry of Economy and Finance is carrying out a Co-financing Scheme for Small and Medium-sized Enterprises (SMEs) in partnership with about 30 banks and microfinance institutions (MFIs). The program, which has a budget of USD 100 million, is open to

by the MicroCapital Team -

MICROCAPITAL BRIEF: Kookmin Paying $603m to LOLC for 70% Equity Stake in Microfinance Institution Prasac of Cambodia

South Korea’s KB Financial Group, whose name derives from its Kookmin Bank, recently issued the first of two tranches it agreed pay for 70 percent of the shares of Prasac, a microbank in Cambodia. Sri Lanka’s LOLC Group, whose name comes from the former Lanka Orix Leasing Company, will take in a total of USD 603 million on the deal, which has been approved by all pertinent regulators. Prasac has 180 branches and 150 automated teller machines (ATMs). As of 2019, it had total assets of USD 3.1 billion, USD 1.8 billion in deposits and a loan portfolio of USD 2.5 billion outstanding to 417,000 borrowers.

KB President Hur Yin said, “With long-term plans to turn Prasac into a

by Chee Meng Ng -

MICROCAPITAL BRIEF: Thailand-based Thitikorn Buying Microfinance Institution Myanmar Financial International Limited (MFIL)

Thai vehicle-finance firm Thitikorn recently secured agreement from the shareholders of Myanmar Financial International Limited (MFIL), a microfinance provider in Myanmar, to buy the company for no less than two times its audited book value.

by Madigan Ruch -

MICROCAPITAL BRIEF: World Bank to Loan $300m to Indonesia for Financial Sector Reform, Including Promoting Long-term Savings, Disaster Microinsurance

The World Bank recently agreed to loan USD 300 million to the government of Indonesia for “financial sector reforms that will help sustain economic growth and achieve the country’s shared prosperity goals.” Planned strategies include increasing the range of

by the MicroCapital Team -

MICROCAPITAL BRIEF: To Help Distribute $4b in COVID-19 Aid, RCBC Rolling Out 2k “ATM Go” POS Devices to Cooperatives, Microfinance Institutions, Rural Banks in the Philippines

The Rizal Commercial Banking Corporation (RCBC) of the Philippines recently partnered with organizations representing over 1,500 financial services providers (FSPs) to give their member FSPs access to RCBC’s ATM Go point-of-service devices to help distribute cash government aid intended to minimize the effects of the COVID-19 pandemic. ATM Go devices are portable, mobile-enabled machines that offer many of the services of traditional automated teller machines (ATMs), such as cash withdrawals, balance inquiries, and transfers of funds to pay bills or buy mobile airtime. RCBC has put 1,250 of the devices in service over the past two years, including to deliver government-to-person

by the MicroCapital Team -

MICROCAPITAL BRIEF: How MFIs Grassland Finance, CD Finance of China Responded to the Pandemic

Because of the lockdown imposed in China due to the spread of COVID-19, “overdue loan payments increased greatly” at Grassland Finance and CD Finance, two microfinance institutions (MFIs) in the country. The timing was unfortunate for farmers because

by Chee Meng Ng -

MICROCAPITAL BRIEF: Cross-border Payment Settlement Network EMQ Expands Into Africa

EMQ, a financial settlement network based in Hong Kong, recently announced its expansion into Africa, including the nations of Ethiopia, Ghana, Kenya, Nigeria and Uganda. The firm facilitates access to “millions” of mobile wallets in Asia and Europe, and it plans to expand into

by the MicroCapital Team -

MICROCAPITAL BRIEF: Microfinance Providers Report Wide Range of COVID-19 Effects via Grameen Crédit Agricole Foundation Survey

From March 11 to March 19, the Grameen Crédit Agricole Foundation, whose head office is in Luxembourg, collected observations from 56 microfinance institutions (MFIs) regarding the effects of COVID-19. Markets are closed, putting traders out of work; and group borrowers’ meetings are canceled. While these are replaced in some instances with door-to-door trans­actions, other MFIs are reducing in-person transactions to minimize virus transmission. Remittance inflows are down. Tourism enterprises are being asked to return deposits for canceled