Category: Trends/Challenges

MICROCAPITAL BRIEF: Panelists at Toronto International Microfinance Summit 2011 Discuss Interest Rate Pricing, Technological Solutions, Commercial and Philanthropic Funding

In a presentation at the recent Toronto International Microfinance Summit, panelists weighed in on a range of current topics in the microfinance sector, including profitability, the effect of commercial investment and advances in technology. Continue reading

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MICROCAPITAL BRIEF: “Intercontinental Ballistic Microfinance” Video Shows Graphic Of Kiva’s Worldwide Microlending Activities

Kiva, a US-based online portal allowing individuals to make loans to microfinance institutions (MFIs), recently posted a video simulation of the flow of funds between its lenders and borrowers across the globe from its incorporation in 2005 until 2011. Continue reading

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MICROCAPITAL BRIEF: Government of Andhra Pradesh, India, Launches Cooperative Microfinance Bank for Self-Help Groups (SHGs)

Self-help groups (SHGs) in the Indian state of Andhra Pradesh will soon have an alternative source of microloans in the form of Stree Nidhi, a cooperative microfinance bank that has been formed by the state government and the Mandal Mahila Samkhyas (MMS), a representative federation of SHGs. Continue reading

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MICROCAPITAL BRIEF: Clinton Global Initiative (CGI) 2011 Annual Meeting Occurring on September 20 – 22 Includes Haiti Investment Workshop

Clinton Global Initiative (CGI), an effort established by former US President Bill Clinton in 2005 to bring together a community of global leaders to alleviate poverty, create a cleaner environment and increase access to health care and education, is holding its 2011 Annual Meeting in New York City, US, from September 20 to September 22, 2011.   Continue reading

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MICROCAPITAL BRIEF: Ahmed El Bardai of Egyptian Microfinance Institution Reefy Predicts Boom in Lending to Small and Medium-Sized Enterprises to Boost National Economy

Mr Ahmed El Bardai, founder and chief executive of the Egyptian for-profit microfinance institution (MFI) Reefy, expects the country’s next government to focus on small and medium-sized enterprises (SMEs) to boost the economy that is facing a huge budget deficit and declining gross domestic product [1]. Continue reading

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MICROFINANCE EVENT: Royal Netherlands Embassy, Global Alliance for Banking on Values (GABV) to Host Roundtable Discussion on “Real” Banking for the Real Economy: Can Values-based Banking Sustainably Finance the Future?, September 22, 2011, in Washington DC, USA

Event Name: “Real” Banking for the Real Economy: Can Values-based Banking Sustainably Finance the Future?

Event Date: September 22, 2011; 5:00 pm to 7:00 pm

Event Location: Washington, DC, USA Continue reading

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MICROCAPITAL BRIEF: FINCA Case Studies Explore Relationship Between Food Security and Microfinance, Analyze Client Data Using World Bank’s Human Opportunity Index

FINCA International, a US-based network of microfinance institutions (MFIs) in 21 countries, recently published two case studies: “Exploring the Linkages between Food Security and Microfinance: A Study by FINCA in Zambia and Guatemala” and “FINCA Client Data Viewed through World Bank’s Human Opportunity Index.” Continue reading

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MICROCAPITAL BRIEF: Housing Microfinance Not a Viable Solution for Slums, Opines Ruban Selvanayagam

Mr Ruban Selvanayagam, a Brazil-based real estate and land consultant with EXITUS Construction Brazil, recently laid out a series of arguments against housing microfinance being the best solution to deal with the “wide and growing presence of slums, shanty towns and other forms of substandard housing” [1]. Continue reading

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MICROCAPITAL BRIEF: Indian Microfinance Institution (MFI) Ujjivan Looking to Raise $138m from Private, Public Sector Banks

Ujjivan Financial Services, an Indian microfinance institution (MFI), reportedly plans to raise up to INR 6.2 billion (USD 138 million) from the Small Industries Development Bank of India (SIDBI), a government-owned financial institution, along with other unspecified private and public-sector banks. Continue reading

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MICROCAPITAL BRIEF: responsAbility Invests $2.5m in Microfinance Institution Asian Credit Fund of Kazakhstan, Bank Eskhata of Tajikistan, XacLeasing of Mongolia

responsAbility Social Investments AG, a Swiss investment company that manages four microfinance investment vehicles (MIVs), recently reported to MicroCapital that it has made debt investments totaling the equivalent of USD 2.5 million in microfinance institutions Asian Credit Fund LLP of Kazakhstan, Bank Eskhata (Eskhata) of Tajikistan and XacLeasing, a sister company of Mongolian microfinance institution XacBank [1]. Continue reading

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MICROCAPITAL BRIEF: ADB’s Pacific Private Sector Development Initiative (PSDI) Annual Report Covers Partnership with Microfinance Institutions (MFIs) in Papua New Guinea, Timor-Leste, Vanuatu

The Pacific Private Sector Development Initiative (PSDI), an initiative established in 2006 by the Asian Development Bank (ADB), recently outlined in its annual report its efforts to “encourage private sector led sustainable economic growth” in developing countries in the Pacific by “improving access to financial services, updating business laws and upgrading the delivery of services by state-owned enterprises (SOEs).” Continue reading

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MICROCAPITAL BRIEF: International Labour Organization (ILO) Backs Crop, Life, Property Microinsurance Scheme in Bolivia

The International Labour Organization (ILO), an agency of the United Nations promoting fair work conditions, is reportedly supporting a pilot microinsurance scheme in the Tarija region of southern Bolivia with unnamed local partners to provide insurance against loss of food crops, life and property. Continue reading

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MICROCAPITAL BRIEF: Microfinance Institutions (MFIs) in India Attempt to Raise Funds Using “Crowd Sourcing”

Microfinance institutions (MFIs) in India have increasingly been exploring “crowd sourcing” to raise funds since traditional sources of funding such as banks and private equity houses have significantly decreased their investments following the “microfinance crisis” that began in 2010 in the state of Andhra Pradesh. Continue reading

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MICROCAPITAL BRIEF: Dr Muhammad Yunus Advises Nigeria’s Microfinance Banks to “Look At Conventional Banking And Do It the Opposite Way”

Dr Muhammad Yunus, the founder and former chairman of Bangladeshi microfinance institution (MFI) Grameen Bank, recently offered guidance to the leaders of Nigeria’s microfinance banks (MFBs) relating to social mission, capital structure and interest rates. Continue reading

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MICROCAPITAL BRIEF: Association of Karnataka Microfinance Institutions Releases Client Survey Data from “Competition and the Role of External Agents: The 2009 Delinquency Crisis in Southern Karnataka” by CGAP, EDA Rural Systems

The Association of Karnataka Microfinance Institutions (AKMI), a community development organization in the rural Indian state of Karnataka, recently made public the client survey data from “Competition and the Role of External Agents: The 2009 delinquency crisis in southern Karnataka,” a study released in 2010 that was conducted by US-based nonprofit CGAP (Consultative Group to Assist the Poor) and EDA Rural Systems, an India-based research and capacity building organization. Continue reading

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MICROCAPITAL BRIEF: Vijay Mahajan of Microfinance Firm BASIX Says Firm to Explore Foreign Investors if Domestic Banks Refuse to Lend

Mr Vijay Mahajan, chairman of BASIX Group, an Indian company whose holdings include two microfinance institutions (MFIs), has reportedly announced that if the company does not get a capital infusion of INR 450 crores (USD 98 million) by end of September from domestic sources, it will have to explore partnering with foreign investors [1]. Continue reading

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