MICROCAPITAL BRIEF: Amret Microfinance, Econet Wireless, myAgro, Urwego Opportunity Bank to Engage Human-Centered Design Firms to Improve Digital Financial Services for Smallholder Farmers in Cambodia, Africa

CGAP (The Consultative Group to Assist the Poor), a US-based nonprofit that aims to facilitate the expansion of financial access, recently selected the following financial service providers to receive an unspecified level of support from human-centered design firms to improve their digital financial services for small-scale farmers: (1) Amret Microfinance, a Cambodian microfinance institution; (2) the Zimbabwean arm of South African mobile network operator Econet Wireless and US-based relief and development nonprofit Mercy Corps; (3) myAgro, a nonprofit organization in Mali that sells agricultural inputs via mobile technology; and (4) Urwego Opportunity Bank (UOB), a microfinance institution that was created as a result of a merger between Urwego Community Banking and Opportunity International Bank of Rwanda [1]. While the Econet-Mercy partnership will engage human-centered design firm Ideo.org, the other three programs have not yet released the names of the organizations with which they will work. 

“Human-centered design” involves observing clients to learn to serve their needs better. The four new projects are part of CGAP’s Innovating for Smallholders Initiative, through which donors, investors and private-sector financial and agricultural institutions collaborate to improve how their existing products and delivery channels they serve “smallholder” households [2].

In December 2013, Amret reported to the US nonprofit Microfinance Information Exchange (MIX) total assets of USD 251 million, a gross loan portfolio of USD 203 million, approximately 286,000 borrowers and collected deposits of USD 94.1 million in approximately 130,000 active accounts. As of February 2014, Econet Wireless Zimbabwe reported total assets of USD 1.2 billion and 8.8 million subscribers. Econet Wireless group is active in 13 countries. As of March 2014, UOB reported to MIX total assets of USD 22 million, a gross loan portfolio of USD 14.1 million, 39,300 active borrowers, deposits of USD 12.8 million, 258,000 depositors, return on assets (ROA) of -4.50 percent and return on equity (ROE) of -17.58 percent. The Urwego Opportunity Bank is a microfinance institution that was created as a result of a merger between Urwego Community Banking and Opportunity International Bank of Rwanda. Financial information about myAgro is unavailable.

By Julia Marín, Research Associate

About CGAP (Consultative Group to Assist the Poor)

CGAP (Consultative Group to Assist the Poor) is a US-based nonprofit policy and research center dedicated to increasing financial access to poor people worldwide. It is supported by approximately 40 development agencies and private foundations in its mission to provide market intelligence, promote standards and offer advisory services to governments, microfinance providers, donors and investors. CGAP reported operating expenses of USD 9 million as of 2013. CGAP is co-located with the offices of the World Bank Group in Washington DC.

About Amret Microfinance

Amret Company Private Limited (Amret), formerly known as Ennetean Moulethan Tchonnebath (“Credit in Rural Areas”), was established in Cambodia in 1991 as a project of French NGO Groupe de Recherche et D’Echange Technologiques (GRET). It became a private limited company in 2000 and received its license to operate as a microfinance institution (MFI) in 2001. In December 2013, Amret reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 251 million, a gross loan portfolio of USD 203 million and approximately 286,000 borrowers. As of the same date, the company reported to MIX a return on assets (ROA) of 4.86 percent, return on equity (ROE) of 26.6 percent and deposits of USD 94.1 million held in approximately 130,000 active accounts.

About Econet Wireless Group:

Based in South Africa, Econet Wireless is a telecommunications group with operations in 13 countries in the Americas, Africa and Eurasia. It offers mobile telephone, fixed telephone, internet and satellite services. Ecocash is Econet’s money transfer service that allows Econet customers to transfer money between mobile phones. As of February 2014, Econet Wireless Zimbabwe reported total assets of USD 1.2 billion and 8.8 million subscribers. Similar data on the rest of the group, which is privately held, is unavailable.

About Urwego Opportunity Bank

The Urwego Opportunity Bank is a microfinance institution that was created as a result of a merger between Urwego Community Banking and Opportunity International Bank of Rwanda. Its services include loan and savings products, business training and insurance coverage. OUB’s shareholders include NGO World Relief Canada and the following three US-based NGOs: Hope International, Opportunity International and World Relief. As of March 2014, UOB reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 22 million, a gross loan portfolio of USD 14.1 million, 39,300 active borrowers, deposits of USD 12.8 million, 258,000 depositors, return on assets (ROA) of -4.50 percent and return on equity (ROE) of -17.58 percent.

Sources and Additional Resources

[1] CGAP News, CGAP Using HCD to Develop Digital Financial Services for Smallholders 

[2] CGAP Topics, Financial Innovation for Smallholder Families 

MicroCapital, January 2, 2015, CGAP (Consultative Group to Assist the Poor), The MasterCard Foundation Award $900k to Advans Cote d’Ivoire, MFS Africa, Money Express for Branchless Banking Projects in Benin, Cote d’Ivoire, Senegal 

MicroCapital, December 1, 2014, Mahindra Comviva, Econet Wireless to Launch ConnectMoney Mobile Payment Service in Zimbabwe 

MicroCapital, May 28, 2014, Amret Receives $10m Loan from Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW) for Micro-, Small, Medium-Sized Enterprises (MSMEs) in Cambodia 

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