The National League for Democracy (NLD), a banned political opposition party in Myanmar (formerly known as Burma), is reported to be planning the launch of a microcredit program to provide small, interest-free-loans in South Okkalapa Township of Burma’s capital city, Rangoon.
Category: Trends/Challenges
MICROCAPITAL BRIEF: African Microfinance Transparency Forum (AMT) Calls for Applications to Host Organization as it Relocates from Luxembourg
African Microfinance Transparency Forum (AMT), a Luxembourg-based nonprofit that seeks to promote transparency and efficiency among African microfinance institutions (MFIs), is set to relocate its operations to the African continent in 2011. AMT is inviting organizations based in Africa to apply to host and manage the AMT Secretariat.
MICROCAPITAL BRIEF: Journalist Lewis Mwanangombe Argues Microfinance Institutions, Banks Fail to Provide Adequate Financial Services in Zambia
A recent article published by Inter Press Service (IPS), an Italy-based global news agency, written by Lewis Mwanangombe, a Zambian journalist who writes for the Associated Press and the Pan-African News Agency, highlights the limited availability of financial services in Zambia. Referencing a World Bank report, Mr Mwanangombe points out, “less than eight percent of Zambian adults have bank accounts. For the millions who make their living in the informal economy, this prevents them from earning interest on any savings they have or securing credit needed to expand small businesses beyond mere survival” [1].
MICROCAPITAL BRIEF: BASIX Group of India Looks to Boost Fee-Based Income by Offering Commercial Banks Access to Its 3.5m Microfinance Customers
BASIX Group, an Indian company whose holdings include two microfinance institutions (MFIs), reportedly intends to rework its business plan to diversify away from direct microlending and generate more income from allowing commercial banks access to its 3.5 million customers.
MICROCAPITAL BRIEF: Ericsson Mobile Money Service Grows to Serve Thousands of Users in Several Currencies
Ericsson, a Sweden-based telecommunications company, has launched an international money transfer and payment service via internet and mobile phone. Ericsson began a pilot program in September 2010 involving 50 service delivery partners in six European countries and the Philippines and is in the process of scaling operations. As of May 2011, the program serves thousands of users with several currencies. Detailed numbers are not available.
MICROCAPITAL BRIEF: Microfinance in Cambodia Grows 10%, Described as “Trap”
Mr Simon Marks from the Asia Sentinel, a website based in Hong Kong, recently cited data collected by the Cambodian Microfinance Association (CMA), a network of microfinance industry officials in Cambodia, indicating that as of the end of the first quarter of 2011, total loans outstanding from its members amounted to approximately USD 712 million, which represents an increase of nearly 10 percent over the last quarter of 2010 [1].
MICROCAPITAL BRIEF: Turkmenistan Adopts Microfinance Law
Mejlis, the Legislature of Turkmenistan, has passed a law on “microfinance institutions and microfinance” [1]. According to the official report released by the Mejlis, the law is intended to attract financial resources to the country, facilitate the creation of industrial and business infrastructure and enhance the competitiveness of Turkmenistan’s private sector. Further details on the law are unavailable.
MICROCAPITAL BRIEF: Members of “No Pago” Movement in Nicaragua Propose to Pay Back Microfinance Debts Over 10 Years, Government Would Repay $25m Upfront
Members of the “No Pago” (No Payment) Movement, in which thousands of Nicaraguan borrowers refused to pay back outstanding loans beginning in 2009, have proposed a deal wherein the government would immediately repay debts to microfinance institutions (MFIs) worth USD 25 million and the debtors would pay the government back over ten years.
MICROCAPITAL BRIEF: US Under Secretary of State Maria Otero: Mobile Money, Policy Reform are Keys to Financial Success
Speaking at a recent panel held by the Brookings Institution, a US-based nonprofit public policy organization, on “Growth Through Innovation in Africa: Mobile Financial Services and Financial Inclusion,” Maria Otero, US Under Secretary of State for Democracy and Global Affairs, argued that mobile money could substantially support financial inclusion efforts.
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX), CGAP (Consultative Group to Assist the Poor) Release “Eastern Europe and Central Asia Microfinance Analysis and Benchmarking Report 2010”
Two US-based nonprofits, the Microfinance Information Exchange (MIX) and CGAP (Consultative Group to Assist the Poor) co-published the “Eastern Europe and Central Asia Microfinance Analysis and Benchmarking Report 2010.”
MICROCAPITAL BRIEF: Microfinance Opportunities to Partner With Opportunity International Bank of Malawi on Branchless Banking
Microfinance Opportunities (MFO), a microenterprise resource center based in Washington, DC, has announced a partnership with Opportunity International Bank of Malawi (OIBM), a Malawian microfinance institution (MFI) affiliated with US-based microfinance network Opportunity International, to implement its branchless banking program in Africa. OIBM joins Moble Transactions in Zambia, Financial Information Networks and Operation (FINO) Fintech Foundation in India and Rural Bankers Association of the Philippines (RBAP) in the Philippines as partners in MFO’s program, “Consumer Education for Branchless Banking” (CEBB).
MICROCAPITAL BRIEF: PlaNet Finance, Freie Universitat Berlin Accepting Applications for University Meets Microfinance (UMM) Scholarship Programme
PlaNet Finance, a French nonprofit, has issued a call for students to submit applications for its third University Meets Microfinance (UMM) Scholarship Programme.
MICROCAPITAL BRIEF: In Partnership with 15 Microfinance Institutions (MFIs), Dia Vikas Capital to Distribute Micro-Pension Scheme Initiated by India’s Pension Fund Regulatory and Development Authority (PFRDA)
In association with its 15 partner microfinance institutions (MFIs), Indian social venture firm Dia Vikas Capital, a subsidiary of nonprofit Opportunity International Australia, will distribute a micro-pension scheme that was initiated by the Pension Fund Regulatory and Development Authority (PFRDA) of the Indian government. The program, NPS-Lite, will encourage economically disadvantaged people to save money for when they are over age 60 [1]. The Indian government is reported to have committed to match NPS-Lite contributions up to INR 1,000 (USD 22) per client annually [1] [2].
MICROCAPITAL BRIEF: To Counter Liquidity Crunch in India, Grameen Koota, Bandhan, SKS Securitize Loans Disbursed to Women
Microfinance institutions (MFIs) in India are reportedly securitizing more of the loans they disburse to women in order to raise capital they would likely have borrowed from banks before the liquidity crunch that has affected the microfinance sector since late 2010.
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Publishes Working Draft of “Microfinance, Financial Crises, and Fluctuations in Food and Fuel Prices” by Adrian Gonzalez
Microfinance Information Exchange, a US-based, nonprofit data provider, recently drafted a paper entitled “Microfinance, Financial Crises, and Fluctuations in Food and Fuel Prices” that examines the potential impact of large-scale financial crises on the microfinance sector.
MICROCAPITAL BRIEF: Islamic Microfinance Can Spur Development, Argues Khan from Care International UK
Mr Ajaz Khan, microfinance adviser for nonprofit organization Care International UK, suggests in an article on the “Poverty matters blog” on the website of the UK’s Guardian newspaper that Islamic microfinance has strong potential to support socioeconomic development.
MICROFINANCE EVENT: Initiative for Public Policy Analysis Hosts Luncheon Roundtable, “Enhancing Competitive E-Payment System in Nigeria”, Lagos, Nigeria, May 24, 2011
Event Name: Luncheon Roundtable – “Enhancing Competitive E-Payment System in Nigeria”
Event Date: May 24, 2011
Event Location: Lagos, Nigeria
MICROCAPITAL BRIEF: International Finance Corporation (IFC) May Invest in Nigerian Mobile Money Industry
International Finance Corporation (IFC), the private-investment arm of the World Bank Group, is reported to be conducting due diligence on the Nigerian mobile money industry. Mobile Money Africa, a Nigerian-based online mobile financial inclusion news source, reports that IFC is “keen to play a major role in the country’s emerging mobile money ecosystem and was currently evaluati[ng] opportunities [in]…technology acquisition, e-Float management and agency networks” [1]. To address the lack of financial access in the country, the Central Bank of Nigeria has granted licenses to 16 mobile money companies in an effort to encourage growth in this industry.