by MicroCapital Research -

MICROFINANCE PAPER WRAP-UP: “Her Home: Housing Finance for Women,” published by IFC

By Henriette Kolb et al, published by the International Finance Corporation (IFC), November 2019, 68 pages, available at https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/financial+institutions/resources/her+home+-+housing+finance+for+women

The authors of this paper analysed the housing finance markets in Colombia, India and Kenya, identifying barriers that women face in accessing loans for purchases, construction and improvements of housing. The authors observed that the rate of

by the MicroCapital Team -

MICROCAPITAL BRIEF: IFC Boosts COVID-19 Response to $8b for Working Capital, Risk-sharing, Trade Finance, “Real Sector” Finance Worldwide; Including $294m Deployed to Target SMEs in Vietnam

The World Bank Group’s International Finance Corporation (IFC) recently increased to USD 8 billion its financial commitment to counter the effects of COVID-19. David Malpass, President of the World Bank Group, said, “It’s essential that we shorten the time to recovery.” He added, “Support operations are already underway, and the expanding funding tools…will help sustain economies, companies and jobs.”

The funding package is divided into four categories, with USD 2 billion allocated each to: (1) cash for

by Chee Meng Ng -

MICROCAPITAL BRIEF: Fintech Liwwa Raises $21m in Debt, Equity for SME Lending Platform in Egypt, Jordan from Investors Including FMO, 500 Startups, Edgo, EFG-EV, Chris Larsen, Wamda

Jordan-based financial technology (fintech) firm Liwwa recently borrowed USD 15 million to expand its facilitation of loans to small and medium-sized enterprises (SMEs) in Egypt and Jordan. Liwwa also raised equity totaling USD 6 million from its previous investors Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), the Netherlands Development Finance Company; Jordan-based Bank al Etihad; Jordan-based Dash Ventures; and US-based VC firm

by Will Boudreau -

MICROCAPITAL BRIEF: US International Development Finance Corporation (DFC) Loans $30m to SEWA’s Sitara for Housing Microfinance for Women in India

The government-backed US International Development Finance Corporation (DFC), which recently took over the work of the Overseas Private Investment Corporation, has loaned USD 30 million to Sitara, an initiative of India’s SEWA (Self Employed Women’s Association), for on-lending to improve the housing conditions of poor women in urban areas. Formerly known as SEWA Grih Rin, Sitara offers loans for housing, business, education and other purposes in amounts from

by Chee Meng Ng -

MICROCAPITAL BRIEF: Northern Arc Raises $23m for India Impact Fund to Invest in SMEs

India-based Northern Arc Investments recently completed the first close of its eighth fund, the Northern Arc India Impact Fund, which is its first fund to accept investments from outside the country. The firm plans to use the five-year debt fund to support Indian lenders for microenterprise, small business, agri-business and vehicles. Northern Arc Investments has raised USD 23 million for the India Impact Fund and will look to increase this to a total of USD 100 million to USD 150 million. By 2021, the company plans to execute

by the MicroCapital Team -

MICROCAPITAL BRIEF: BNP Paribas Loans $9.4m to CreditAccess Grameen of India for Microfinance

BNP Paribas, a bank based in France, recently informed MicroCapital that it has disbursed a two-year loan of INR 700 million (USD 9.4 million) to CreditAccess Grameen, the Indian member of CreditAccess Asia, which operates microfinance institutions (MFIs) in India, Indonesia and the Philippines. CreditAccess Grameen, formerly known as Grameen Koota, offers group microenterprise loans of USD 1,150; individual small business loans of up to

by the MicroCapital Team -

MICROCAPITAL BRIEF: Tarayana Foundation Offers Rural Microfinance, Mobile Repayments via B-Ngultrum of Bhutan Telecom

Tarayana Micro Finance recently became licensed as a microfinance institute (MFI), independent of its incubator, the Tarayana Foundation of Bhutan. The MFI provides individual and group loans in rural areas, with interest rates of 15 percent. Smaller “classic” loans support existing enterprises, while larger loans are available for “pre-selected livelihood models with a proven market and reliable value chain.” These larger “development” loans are disbursed in the form of “materials and

by Chee Meng Ng -

MICROCAPITAL BRIEF: A91 Partners Buys Equity Stake in Fintech Lender Aye Finance, Completing Accion Exit

Accion Venture Lab, the seed-stage investment initiative of US-based NGO Accion, recently sold its stake in Aye Finance, an India-based lender, to A91 Partners, an Indian venture capital fund. Accion Venture Lab bought a 15-percent stake in Aye in 2015 and

by the MicroCapital Team -

MICROCAPITAL BRIEF: Bangladesh Capping Interest Rates at 9%, Observers Warn Microfinance Lending Would Become “Unviable Overnight”

As of April 1, all lending in Bangladesh is to occur at a cost of no more than 9 percent per year. The only exception is for loans via credit card. In advance of the deadline, the average lending rate for cottage, micro- and small enterprises (CMSEs) reportedly stands at 16 percent. Economist Zahid Hussain argued, “The 9 per cent interest rate cap will

by Anna Gravois -

MICROFINANCE PAPER WRAP-UP: “China’s Long March to a Cashless Future: Regulatory Responses to DFS Innovation and the Challenges of Rural Distribution,” Published by CGAP

By Patrick Meagher, published by CGAP (Consultative Group to Assist the Poor), December 2019, 24 pages, available at: https://www.findevgateway.org/sites/default/files/publication_files/dfs_distribution_china_final_dec_2019.pdf

Over the last several years, China has experienced a large-scale migration of financial services to digital platforms. As these digital financial services (DFS) have become available in typically underserved rural areas, financial access has

by Anna Gravois -

MICROFINANCE PAPER WRAP-UP: “Micro-business 2.0: A New Generation of Women “Social Commerce” Entrepreneurs in India & Indonesia,” Published by Women’s World Banking (WWB)

By Sophie Theis, published by Women’s World Banking, November 2019, 18 pages, available at https://www.womensworldbanking.org/insights-and-impact/women-social-commerce-entrepreneurs-in-india-and-indonesia/

Female entrepreneurs in India and Indonesia historically have faced a multitude of challenges such as “low access to capital, restricted mobility, limitations on property rights, time poverty and gender norms.” In both countries, women own less than

by Alex Chowdhury -

MICROCAPITAL BRIEF: Invest in Visions’ IIV Mikrofinanzfonds Loans $11m to Microfinance Institution ASA International India

Mikrofinanzfonds, a fund managed by Germany’s Invest In Visions (IIV), recently loaned EUR 10 million (USD 11 million) to ASA International India, a microlending unit of ASA International. ASA India was founded in 2008 and serves

by the MicroCapital Team -

MICROCAPITAL BRIEF: UN’s PFIP, Catalpa Launching 6-month Pilot of Olgeta, Financial Education App for Young Women in Rural Solomon Islands

Catalpa, a development organization based in Timor-Leste, is partnering with the Pacific Financial Inclusion Program (PFIP), a UN effort based in Fiji, to pilot-test an app called Olgeta, which will provide education via mobile phones to young women in rural parts of the Solomon Islands. The service will cover topics “such as leadership, financial literacy and digital marketing,” including “how to budget, bank, and save…”. The six-month pilot will target the 120 people served by two

by the MicroCapital Team -

MICROCAPITAL BRIEF: US International Development Finance Corporation (DFC) Launches, Combining Efforts of OPIC, USAID’s DCA with Investment Cap of $60b to Focus on Low-income, Lower Middle-income Countries

The government-backed US International Development Finance Corporation (DFC) recently launched with goals to “help businesses expand into emerging markets, foster growth and improve lives in the developing world, while reinforcing US foreign policy and national security interests.” DFC is taking over the work of the Overseas Private Investment Corporation, which had similar goals and an investment cap of USD 29 billion, and the

by Alex Chowdhury -

MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Loans $3.8m to Proximity, Chamroeun for Microfinance in Myanmar, Cambodia

The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, recently issued the following loans: (1) MMK 3 billion (USD 2 million) to Proximity Designs, a US-registered NGO that operates exclusively in Myanmar; and (2) USD 1.8 million to Chamroeun of Cambodia to help

by Alex Chowdhury -

MICROCAPITAL BRIEF: XacBank of Mongolia Secures $30m Loan from Asian Development Bank to Increase Microfinance, SME Lending

XacBank, a Mongolia-based institution offering traditional banking and insurance services as well as microfinance, recently secured a loan of USD 30 million from the Asian Development Bank (ADB), a multilateral institution seeking to promote social and economic development on the continent. The loan proceeds are

by the MicroCapital Team -

MEDIA OF THE MONTH: Digital Exhibit – Exemplary Women Addressing Social, Economic, Environmental Challenges – “Little Big Movement” from BNP Paribas

In celebration of 30 years of supporting microlending, BNP Paribas has created an exhibit showcasing women who are making positive changes in their communities: https://group.bnpparibas/en/microfinance30years.

This is the first of a monthly series from MicroCapital on quality media that might not have fit into our usual news format. Enjoy!

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