MicroCapital: On microfinance, mobile money, SMEs and other forms of impact Investing https://www.microcapital.org The candid voice for microfinance, mobile money, SMEs and other forms of impact investing Thu, 22 Jun 2017 18:47:44 +0000 en-US hourly 1 https://wordpress.org/?v=4.7.5 MICROCAPITAL BRIEF: IFU, Finnfund, Danish Family Office Invest $8m in BOPA for Asian Microfinance https://www.microcapital.org/microcapital-brief-ifu-finnfund-danish-family-office-invest-8m-bopa-asian-microfinance/ Thu, 22 Jun 2017 17:56:03 +0000 https://www.microcapital.org/?p=35684 Base of Pyramid Asia (BOPA), a microfinance investment company in Singapore, recently informed MicroCapital that it has raised a total of USD 8 million in equity funding from the Investment Fund for Developing Countries (IFU), which is owned by the Danish government; the Finnish Fund for Industrial Cooperation (Finnfund), which is backed by the Finnish […]

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Base of Pyramid Asia (BOPA), a microfinance investment company in Singapore, recently informed MicroCapital that it has raised a total of USD 8 million in equity funding from the Investment Fund for Developing Countries (IFU), which is owned by the Danish government; the Finnish Fund for Industrial Cooperation (Finnfund), which is backed by the Finnish government; and a Danish family office.

The infusion will be used to finance additional microfinance investments in Asia. As of 2017, BOPA holds investments in microfinance institutions in Cambodia, East Timor, Kazakhstan, Kyrgyzstan, Myanmar, Tajikistan and Vietnam. It holds assets of USD 6 million, and its investees have an aggregate loan portfolio of USD 63 million serving 147,000 people.

IFU provides advisory services to Danish companies investing in developing countries and finances projects that enhance economic and social development in Africa, Latin America and Europe. Its investment portfolio totals DKK 17.7 billion (USD 2.66 billion).

Finnfund, which was established in 1980, seeks to “finance ventures that use Finnish technology, cooperate with Finnish partners on a long-term basis or [participate in investments expected to] generate major environmental or social benefits.” For 2015, it reported total assets of EUR 377 million (USD 420 million) and a net profit of EUR 5.1 million (USD 5.7 million).

By Sascha Strobl, Research Associate

Sources and Additional Resources:

BOPA press release:
http://www.bopa-microfinance.com/wp-content/uploads/2015/10/Press-Release-BOPA-concludes-capital-raise-v13oct15CHA.pdf

BOPA:
http://www.bopa-microfinance.com/

IFU:
https://www.ifu.dk/

Finnfund:
https://www.finnfund.fi/

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MICROFINANCE EVENT: The MasterCard Foundation Symposium on Financial Inclusion, $150k “Clients at the Centre” Prize; November 8-9, 2017; Accra, Ghana https://www.microcapital.org/microfinance-event-mastercard-foundation-symposium-financial-inclusion-150k-clients-centre-prize-november-8-9-2017-accra-ghana/ Thu, 22 Jun 2017 05:03:48 +0000 https://www.microcapital.org/?p=35681 Event Name: The MasterCard Foundation Symposium on Financial Inclusion Event Date: November 8 – November 9, 2017 Event Location: Accra, Ghana Cost: This event is open by invitation only Summary of Event: The symposium will focus on increasing the knowledge of financial service providers regarding the financial lives of poor people in an effort to […]

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Event Name: The MasterCard Foundation Symposium on Financial Inclusion

Event Date: November 8 – November 9, 2017

Event Location: Accra, Ghana

Cost: This event is open by invitation only

Summary of Event: The symposium will focus on increasing the knowledge of financial service providers regarding the financial lives of poor people in an effort to enable the providers to design and deliver products that are more closely aligned with people’s needs. The proceedings will include workshops, plenary sessions and the award of the 2017 “Clients at the Centre” prize, which includes a cash award of USD 150,000. A panel selected by The MasterCard Foundation will nominate three finalists for the prize, and the winner will be selected by the event attendees. Although the detailed agenda has yet to be released, last year’s symposium included sessions such as identifying client needs and creating innovative partnerships between financial service providers.

Background on Organizers: Based in Canada, The MasterCard Foundation seeks to enable people living in poverty to improve their lives with increased access to microfinance and education, primarily in Africa. The foundation was established in 2006 by a gift of shares from US-based payment processor Mastercard Worldwide during the company’s initial public offering. As of 2015, The MasterCard Foundation reported approximately USD 9 billion in assets.

Event Website: http://mastercardfdnsymposium.org/

For additional information you may email info[at]mastercardfdn.org or telephone +1 416 214 2857.

By Jacob O’Driscoll, Research Associate

Sources and Additional Information

The MasterCard Foundation Symposium
http://MasterCardfdnsymposium.org/

The MasterCard Foundation
http://www.MasterCardfdn.org/

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MICROCAPITAL BRIEF: EIB Group’s DCFTA Initiative East, InnovFin Supporting SMEs in Georgia, Moldova, the Ukraine; ProCredit Secures $56m Partial Loan Guarantee https://www.microcapital.org/microcapital-brief-eib-groups-dcfta-initiative-east-innovfin-supporting-smes-georgia-moldova-ukraine-procredit-secures-56m-partial-loan-guarantee/ Wed, 21 Jun 2017 05:03:27 +0000 https://www.microcapital.org/?p=35670 Both arms of the EU-affiliated EIB Group, the European Investment Bank (EIB) and the European Investment Fund (EIF), are implementing two programs intended to fortify the private sectors of Georgia, Moldova and the Ukraine [1]. The first program, the Deep and Comprehensive Free Trade Agreement (DCFTA) Initiative East, aims to stimulate economic growth in the […]

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Both arms of the EU-affiliated EIB Group, the European Investment Bank (EIB) and the European Investment Fund (EIF), are implementing two programs intended to fortify the private sectors of Georgia, Moldova and the Ukraine [1].

The first program, the Deep and Comprehensive Free Trade Agreement (DCFTA) Initiative East, aims to stimulate economic growth in the three countries by guaranteeing loans made by local banks to small and medium-sized enterprises (SMEs) in addition to supporting SMEs through “technical assistance via institutional and capacity-building activities.” More broadly, the DCFTA offers Georgia, Moldova and the Ukraine “a framework for modernising their trade relations and for economic development by the opening of markets via the progressive removal of customs tariffs and quotas, and by an extensive harmonisation of laws, norms and regulations in various trade-related sectors [11].”

The second program, known as EU Finance for Innovators or “InnovFin,” is intended to help SMEs access finance more easily through the implementation of “guarantees for financial intermediaries, direct loans to enterprises and advisory services.” In February, for example, EIF agreed under this program to accept half of the risk of loans disbursed by ProCredit Bank Georgia totalling up to the local-currency equivalent of USD 56 million over two years [1, 9]. In addition to the EIB Group, InnovFin is backed by the European Commission (EC), the executive body of the EU.

Established in 1998, ProCredit Georgia is a member of Germany’s ProCredit Group. ProCredit Group, which describes its work as “development-oriented,” provides financial services to SMEs via 21 banks in Eastern Europe, Latin America and Africa [10]. As of 2016, ProCredit Georgia reported total assets of USD 579 million, deposits of USD 304 million, a gross loan portfolio of USD 364 million, return on assets of 2.0 percent and return on equity of 14 percent [2, 8].

Created in 1958, the European Investment Bank (EIB) serves as the long-term lending bank of the EU. In addition to supporting projects in EU member states, its main priorities are financing investments in probable future member states and EU partner countries, principally in the area of SMEs. According to its website, “the EIB operates on a non-profit maximizing basis and lends at close to the cost of borrowing.” The total subscribed capital of the bank was EUR 243 billion (USD 272 billion) as of December 2016 [3, 6].

Established in 1994, the European Investment Fund (EIF) provides risk finance to organizations that lend to European SMEs. As of 2017, its shareholders are EIB (65.1 percent); the EU, represented by the European Commission (24.3 percent); and 31 financial institutions from EU member states plus Turkey. As of 2017, EIF has total authorized capital of EUR 4.5 billion (USD 5 billion) [4, 7].

By Matthew O’Neill, Research Associate

Sources and Additional Resources:

[1] EU Bank Introduces Financial Instruments to Support Georgian SMEs:
http://georgiatoday.ge/news/6501/EU-Bank-Introduces-Financial-Instruments-to-Support-Georgian-SMEs

[2] MICROCAPITAL BRIEF: TBC Bank to Acquire ProCredit Bank Georgia’s Microcredit Portfolio:
https://www.microcapital.org/microcapital-brief-tbc-bank-to-acquire-procredit-bank-georgias-microcredit-portfolio/

[3] MICROCAPITAL BRIEF: Part of $38b Commitment From European Investment Bank, World Bank, European Bank For Reconstruction and Development To Support SMEs:
https://www.microcapital.org/microcapital-brief-part-of-38b-commitment-from-european-investment-bank-world-bank-european-bank-for-reconstruction-and-development-to-support-smes/

[4] MICROCAPITAL BRIEF: European Commission, European Investment Fund (EIF) to Guarantee $261m through European Programme for Employment and Social Innovation (EaSI), Supporting 20,000 Microenterprises via Romania’s Nextebank, 5 Western European Microfinance Institutions (MFIs):
https://www.microcapital.org/microcapital-brief-european-commission-european-investment-fund-eif-to-guarantee-261m-through-european-programme-for-employment-and-social-innovation-easi-supporting-20000-microenterprises-vi/

[5] Microfinance Information Exchange (MIX), ProCredit Georgia:
https://www.themix.org/mixmarket/profiles/procredit-bank-geo

[6] European Investment Bank, 2016 Financial Report:
http://www.eib.org/attachments/general/reports/fr2016en.pdf

[7] European Investment Fund, 2017 Register of Members:
http://www.eif.europa.eu/news_centre/publications/register_shareholders.pdf

[8] ProCredit Georgia Consolidated Financial Statements, 2016:
https://procreditbank.ge/admin/files/compliance/PCB_Audit%20Repor_%20&_%20IFRS_FSs_%202016.pdf

[9] EU and EIB Group Join Forces to Support More Investment:
http://www.eib.org/infocentre/press/releases/all/2014/2014-134-eu-and-eib-group-join-forces-to-support-up-to-eur48-billion-in-r-i-investment.htm

[10] MICROCAPITAL BRIEF: Equity Group Acquires ProCredit Bank Congo to Expand to Democratic Republic of the Congo:
https://www.microcapital.org/microcapital-brief-equity-group-acquires-procredit-bank-congo-to-expand-to-democratic-republic-of-the-congo/

[11] The Deep and Comprehensive Trade Area (DCFTA):
https://trade.ec.europa.eu/doclib/docs/2013/april/tradoc_150981.pdf

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MICROCAPITAL BRIEF: Water.org Launches WaterCredit Investment Fund 3 to Facilitate Access to Sanitation, Clean Water in Cambodia, India, Indonesia, the Philippines https://www.microcapital.org/microcapital-brief-water-org-launches-watercredit-investment-fund-3-facilitate-access-sanitation-clean-water-cambodia-india-indonesia-philippines/ Tue, 20 Jun 2017 05:03:43 +0000 https://www.microcapital.org/?p=35661 WaterEquity, the “social impact investment” subsidiary of US-based NGO Water.org, recently launched the WaterCredit Investment Fund 3 with the goal of raising USD 50 million to “invest in enterprises serving water and sanitation needs among the world’s poor.” In particular, WaterEquity will seek to direct investments from the WaterCredit Investment Fund 3 to “enterprises that […]

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WaterEquity, the “social impact investment” subsidiary of US-based NGO Water.org, recently launched the WaterCredit Investment Fund 3 with the goal of raising USD 50 million to “invest in enterprises serving water and sanitation needs among the world’s poor.” In particular, WaterEquity will seek to direct investments from the WaterCredit Investment Fund 3 to “enterprises that have significant capacity for scale, [and] a strong financial track record” in Cambodia, India, Indonesia, and the Philippines. Water.org Co-founder Gary White stated, “We’re hoping that more than 4.6 million people will get access to water and sanitation through this [newest fund].”

The fund, which is the third of its kind inaugurated by WaterEquity since its inception in 2016, has secured an interest-free loan of USD 5 million from US-based Bank of America. WaterCredit has invested in 69 microfinance institutions and other organizations.

Founded in 1990 by Matt Damon and Gary White, Water.org aims to provide access to safe water and sanitation in Africa, Central America and South Asia. Its WaterEquity arm connects investors to microfinance institutions (MFIs) and other implementation partners to work toward this goal. As of 2016, Water.org had USD 32 million in total assets and operations in 12 countries.

By Jacob O’Driscoll, Research Associate

Sources and Additional Information

WaterEquity Launches New $50M Social Impact Investment Fund
http://www.finsmes.com/2017/04/waterequity-launches-new-50m-social-impact-investment-fund.html

WaterEquity
https://waterequity.org/

Water.org
https://water.org/

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MICROCAPITAL BRIEF: FINCA Armenia Completes $7m Dual-currency Bond Issue https://www.microcapital.org/microcapital-brief-finca-armenia-completes-7m-dual-currency-bond-issue/ Mon, 19 Jun 2017 16:50:22 +0000 https://www.microcapital.org/?p=35665 FINCA Armenia, a microfinance institution based in Yerevan, recently issued bonds worth USD 4 million and AMD 1.5 billion (USD 3 million) listed on the NASDAQ OMX Armenia stock exchange. The microlender provides business, rural and consumer loans as well as insurance services to 52,000 customers via 36 branches. It has total assets of USD […]

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FINCA Armenia, a microfinance institution based in Yerevan, recently issued bonds worth USD 4 million and AMD 1.5 billion (USD 3 million) listed on the NASDAQ OMX Armenia stock exchange. The microlender provides business, rural and consumer loans as well as insurance services to 52,000 customers via 36 branches. It has total assets of USD 60 million and gross operating income of USD 10 million as of 2016. FINCA Armenia is an affiliate of the Foundation for International Community Assistance (FINCA International), a US-based network of microfinance institutions that serves approximately 2 million people in 23 countries. As of 2015, it reported total assets of USD 1.1 billion, with an operating loss of USD 2.8 million. It was founded in 1984 and has operated in Armenia since 1999.

By Sascha Strobl, Research Associate

Sources and Additional Resources:

PR Newswire:
http://www.prnewswire.com/news-releases/finca-armenia-issues-multi-denominational-bond-offering-300468724.html

FINCA Armenia:
http://www.finca.am/

FINCA International financial statement 2015:
http://www.finca.org/files/2016/09/2015-FINCA-Annual-Report-FINAL-spreads_SM.pdf?x92621

MICROCAPITAL BRIEF: FINCA Case Studies Explore Relationship Between Food Security and Microfinance, Analyze Client Data Using World Bank’s Human Opportunity Index
https://www.microcapital.org/microcapital-brief-finca-case-studies-explore-relationship-between-food-security-and-microfinance-analyze-client-data-using-world-bank’s-human-opportunity-index/

MICROCAPITAL BRIEF: Financiera FINCA Nicaragua Launches $10m Bond Offering to Expand Microfinance Lending
https://www.microcapital.org/microcapital-brief-financiera-finca-nicaragua-launches-10m-bond-offering-expand-microfinance-lending/

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MICROCAPITAL BRIEF: Hedge Fund Route One Buys 0.88% Equity Stake in India’s Bharat Financial Inclusion for $15m https://www.microcapital.org/microcapital-brief-hedge-fund-route-one-buys-0-88-equity-stake-indias-bharat-financial-inclusion-15m/ Mon, 19 Jun 2017 03:03:53 +0000 https://www.microcapital.org/?p=35657 US-based Route One Fund I LP recently spent approximately INR 990 million (USD 15.4 million) to purchase 0.88 percent of the shares of Bharat Financial Inclusion, a for-profit non-banking microfinance institution (MFI) in India, via an open market transaction. The transaction involved the purchase of 1.2 million shares at an average price of INR 809.14 […]

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US-based Route One Fund I LP recently spent approximately INR 990 million (USD 15.4 million) to purchase 0.88 percent of the shares of Bharat Financial Inclusion, a for-profit non-banking microfinance institution (MFI) in India, via an open market transaction. The transaction involved the purchase of 1.2 million shares at an average price of INR 809.14 (USD 12.56).

Bharat, formerly known as SKS Microfinance, is a for-profit microfinance institution that was launched in 1998 in India. Bharat converted into a public limited company in May 2009 and launched an initial public offering on July 28, 2010. It has since diversified into offering gold loans and microinsurance services but does not accept deposits. As of March 2016, Bharat reported total assets of INR 71 billion (USD 1 billion), loans totaling INR 52 billion (USD 771 million), 4.6 million active borrowers, a return on equity of 21.9 percent and a return on assets of 4.23 percent. Shares of Bharat trade on the Bombay Stock Exchange and India’s National Stock Exchange.

Route One Fund I was formed on November 1, 2010. No financial data on the fund are available.

By Christian Chartier, Research Associate

Sources and Additional Resources:

[1] “Route One Fund buys stake in Bharat Financial for Rs99 crore”, PTIFeed, http://indiatoday.intoday.in/story/route-one-fund-buys-stake-in-bharat-financial-for-rs-99-cr/1/954604.html

Bharat Financial Inclusion
https://markets.ft.com/data/equities/tearsheet/financials?s=BHARATFIN:NSI

National Stock Exchange of India
https://www.nseindia.com/global/content/about_us/about_us.htm

Route One Fund I, LP
https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001497232

MicroCapital coverage of Bharat Financial Inclusion, June 9, 2016
https://www.microcapital.org/microcapital-brief-indias-sks-microfinance-changes-name-to-bharat-financial-inclusion-in-apparent-continuing-reaction-to-2010-microfinance-crisis-in-andhra-pradesh/

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MICROCAPITAL BRIEF: Sri Lankans Urge Government to Allow Microfinance Institutions to Offer Microinsurance, Access Credit Information Bureau https://www.microcapital.org/microcapital-brief-sri-lankans-urge-government-allow-microfinance-institutions-offer-microinsurance-access-credit-information-bureau/ Thu, 15 Jun 2017 20:33:06 +0000 https://www.microcapital.org/?p=35654 M M Attanayake, the president of the 71-member Lanka Microfinance Practitioners’ Association (LMFPA), recently urged policymakers to amend existing law to allow microfinance institutions (MFIs) to offer microinsurance. He also said that MFIs should be able to make use of the Credit Information Bureau of Sri Lanka. Dr. A.T. Ariyaratn, who founded a group of […]

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M M Attanayake, the president of the 71-member Lanka Microfinance Practitioners’ Association (LMFPA), recently urged policymakers to amend existing law to allow microfinance institutions (MFIs) to offer microinsurance. He also said that MFIs should be able to make use of the Credit Information Bureau of Sri Lanka.

Dr. A.T. Ariyaratn, who founded a group of community organizations known as the Sarvodaya Shramadana Movement, said he has “concerns on the impact of the recent budget proposal not to report credit information of loans below LKR 500,000 (USD 3,300).”

The men added that better credit information could prevent multiple borrowing and defaults as well as keep MFIs from asking borrowers for “high-end collateral.”

LMFPA, which was founded as the Lanka Microfinance Network in 2006, consists of 71 member organizations, including microfinance institutions, cooperatives and NGOs. As of 2016, its members serve a total of 700,000 borrowers and 100,000 depositors with a gross loan portfolio of LKR 70 billion (USD 458 million) and total deposits of LKR 900 million (USD 6 million).

By Sascha Strobl, Research Associate

Sources and Additional Resources:

Daily Mirror story:
http://www.dailymirror.lk/article/Microfinance-practitioners-seek-policy-support-for-sustainable-industry–129772.html

Lanka Microfinance Practitioners’ Association:
http://www.microfinance.lk/

Lanka Microfinance Practitioner’s Association on the MIX:
https://www.themix.org/mixmarket/profiles/lmfpa

Credit Information Bureau of Sri Lanka:
http://www.crib.lk/main.html

Sarvodaya Shramadana Movement:
http://www.sarvodaya.org

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MICROCAPITAL BRIEF: AgroCenta of Ghana Wins $20k Fincluders Startup Challenge for Online Agricultural Marketplace https://www.microcapital.org/microcapital-brief-agrocenta-ghana-wins-20k-fincluders-startup-challenge-online-agricultural-marketplace/ Wed, 14 Jun 2017 06:51:33 +0000 https://www.microcapital.org/?p=35647 Ghana-based AgroCenta recently won USD 20,000 in the Fincluders Startup Challenge, which was created to support new companies seeking to increase financial inclusion. AgroCenta hosts an online trading hub for farmers and agricultural buyers in Ghana. The competition was created by the technical assistance facility of the Luxembourg-based Sanad Fund for MSME and Oasis500, a […]

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Ghana-based AgroCenta recently won USD 20,000 in the Fincluders Startup Challenge, which was created to support new companies seeking to increase financial inclusion. AgroCenta hosts an online trading hub for farmers and agricultural buyers in Ghana. The competition was created by the technical assistance facility of the Luxembourg-based Sanad Fund for MSME and Oasis500, a Jordan-based seed investor and business accelerator operating in the technology sector. Jordan’s liwwa, a platform for lenders to small and medium-sized enterprises, won second place; and third place went to Democrance, a microinsurance company based in the United Arab Emirates.

Sanad, which is named for the Arabic word meaning “support,” was founded in 2011 by German development bank Kreditanstalt für Wiederaufbau (KfW). Its goal is to help micro-, small and medium-sized enterprises (MSME) grow to improve the economic outlook of North Africa and the Middle East. It does this by investing in – and otherwise supporting – financial services providers such as microfinance institutions, commercial banks and leasing firms. Sanad is funded by KfW, Germany’s GLS Bank and the EU as well as development finance institutions of the Austrian, German and Swiss governments. Sanad invests in Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Tunisia and Yemen with an emphasis on Egypt and Tunisia. As of 2016, the fund had raised total investor commitments of USD 186 million. It is advised by Germany’s Finance in Motion, which manages assets valued at EUR 1.6 billion (USD 1.7 billion) as of 2017.

By Sascha Strobl, Research Associate

Sources and Additional Resources:

Fincluders Startup Challenge press release:
http://sentpressrelease.com/pressrelease/attachment/143640/c144933d-8a6b-4d7c-ab90-c0f854f51388/d5b278a5-8b8b-4e4f-ae24-247430314733?fileDisplayName=2017-05 Jury Crowns Winners of Competition for Fintech Startups.pdf

AgroCenta:
http://agrocenta.com

liwwa:
https://www.liwwa.com

Democrance:
http://democrance.com

Oasis500:
http://oasis500.com/

SANAD:
https://www.sanad.lu/

MICROCAPITAL BRIEF: FMO Investing $15m in Equity in Sanad Fund for MSME for On-lending in the Middle East, North Africa:
https://www.microcapital.org/microcapital-brief-fmo-investing-15m-equity-sanad-fund-msme-lending-middle-east-north-africa/

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MICROCAPITAL BRIEF: Telkom Kenya Shutting Down Its Orange Money Mobile Money Service https://www.microcapital.org/microcapital-brief-telkom-kenya-shutting-orange-money-mobile-money-service/ Tue, 13 Jun 2017 05:03:23 +0000 https://www.microcapital.org/?p=35639 Telkom Kenya, a telecommunications provider in Kenya, recently announced that July 4 will be the last day it will offer the mobile money service Orange Money. Orange Money reportedly has failed to compete with similar services offered by mobile network operators in the country, such as such as Safaricom and the local arm of India’s […]

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Telkom Kenya, a telecommunications provider in Kenya, recently announced that July 4 will be the last day it will offer the mobile money service Orange Money. Orange Money reportedly has failed to compete with similar services offered by mobile network operators in the country, such as such as Safaricom and the local arm of India’s Airtel, as a result of “only [being able to] perform limited transactions.” In the future, Telkom Kenya intends to re-launch a different mobile money platform with an emphasis on “interoperability,” allowing users to send money to and receive payment from people on competing mobile money systems.

Telkom Kenya reports that its Orange Money service facilitated transactions worth KSH 80 million (USD 774,000) via 800 agents in the country during the last three months of 2016. The name Orange Money is a remnant of Telkom Kenya’s past ownership by French telecommunications provider Orange SA. The private equity arm of UK-based Helios Investment Partners bought Telkom Kenya in 2015.

Founded in 1999, Telkom Kenya provides telecommunications services to 5 million individuals, companies and government entities as of 2016. The company is semi-privatized, with Helios Investment Partners owning a 60% stake as of 2015 and the government of Kenya holding the remaining 40%.Telkom Kenya is an affiliate of South Africa-based Telkom, which operates in 38 African countries.

Founded in 2004, Helios invests primarily in Africa through its credit and private equity divisions. The firm has holdings in commodities, natural resources, telecommunications and various debt instruments. It managed total assets of USD 3 billion as of 2016.

Paris-based Orange offers fixed telephony, mobile telephony and internet services in 30 countries. Since 2000, it has been owned by France Télécom. At the end of 2016, Orange’s customer base included 263 million customers, including approximately 120 million in Africa. The firm’s consolidated revenues reached EUR 40.9 billion (USD 45.7 billion) in 2016.

By Jacob O’Driscoll, Research Associate

Sources and Additional Resources

Citizen TV: Telkom Kenya to terminate Orange Money service
https://citizentv.co.ke/business/telkom-kenya-to-terminate-orange-money-service-167485/

Telkom Kenya
http://www.telkom.co.ke/

Helios Investment Partners
https://www.heliosinvestment.com/

Orange SA
https://www.orange.com/en/home

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MICROFINANCE BRIEF: Ford Foundation to Invest $1b Over 10 Years in Mission-related Investments Such as Financial Services in Developing Countries, Affordable Housing in the US https://www.microcapital.org/microfinance-brief-ford-foundation-invest-1b-10-years-mission-related-investments-financial-services-developing-countries-affordable-housing-us/ Mon, 12 Jun 2017 19:38:59 +0000 https://www.microcapital.org/?p=35643 The US-based Ford Foundation recently announced plans to disburse USD 1 billion in “mission-related investments” with initial foci on access to financial services in developing countries and affordable housing in the US. Because foundations in the US are required to spend 5 percent of their endowment on charitable purposes, many invest the other 95 percent […]

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The US-based Ford Foundation recently announced plans to disburse USD 1 billion in “mission-related investments” with initial foci on access to financial services in developing countries and affordable housing in the US. Because foundations in the US are required to spend 5 percent of their endowment on charitable purposes, many invest the other 95 percent of their assets with the aim of replenishing that 5 percent, often without regard to social impact. For the Ford Foundation, this led to annual grantmaking of roughly USD 500 million. Ford Foundation President Darren Walker writes: “If philanthropy’s past half century was about optimizing the 5 percent, its next half century will be about beginning to harness the 95 percent as well, carefully and creatively.”

The Ford Foundation, which was chartered in 1936 by Edsel Ford, provides grants and loans that address issues of civic engagement, human rights, social justice, economic fairness, metropolitan opportunity (jobs, school transportation, housing), sustainable development, education, freedom of expression, and sexuality and reproductive health and rights. As of 2015, it reported total assets of USD 12.1 billion and program activities of USD 657 million.

By Sascha Strobl, Research Associate

Sources and Additional Resources:

Ford Foundation announcement:
https://www.fordfoundation.org/the-latest/news/ford-foundation-commits-1-billion-from-endowment-to-mission-related-investments/

Ford Foundation blog post:
https://www.fordfoundation.org/ideas/equals-change-blog/posts/unleashing-the-power-of-endowments-the-next-great-challenge-for-philanthropy/

Ford Foundation financial statements:
https://fordfoundcontent.blob.core.windows.net/media/2960/2015-audited-financial-statements-copy.pdf

New York Times story on Ford Foundation announcement:
https://www.nytimes.com/2017/04/13/business/ford-foundation-mission-investment.html?_r=0

Ford Foundation on MicroCapital:
https://www.microcapital.org/microcapital-brief-new-criteria-announced-for-social-performance-reporting-awards-from-cgap-consultative-group-to-assist-the-poor-michael-and-susan-dell-foundation-ford-foundation-microfinance-i/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.

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