The Asian Development Bank (ADB), a regional development bank headquartered in Manila, the Philippines, which in 2007 approved USD 10.1 billion in loans [1], is providing a USD 3 million grant to the Small Industries Development Bank of India (SIDBI) to offer services to female entrepreneurs in India. The grant will target women who have “outgrown traditional microfinance support, but who are unable to access more conventional bank financing – the so called ‘missing middle’ group of the small enterprise sector” [3]. The ADB administered the grant through The Japan Fund for Poverty Reduction (JFPR), a Japanese government-funded organization with total assets of USD 392 million [2]. The states to be targeted for the grant are Madhya Pradesh, Maharashtra, Orissa, Rajasthan and Uttar Pradesh. The grant will be distributed over a three year time period [3].
According to the ADB, the purpose of this is “to review and revise their gender policies and practices” and to “help remove some of the current constraints faced by women entrepreneurs in accessing financial services” by training 1,200 women in financial literacy and business [3].
By Julia Korn, Research Associate
About The Asian Development Bank (ADB):
Established in 1966 and headquartered in Manila, the Philippines, the Asian Development Bank (ADB) is a regional development bank that consists of sixty-seven members, of which forty-eight are based in the region and nineteen are based outside the region. The ADB has three strategic agendas: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, the ADB uses loans, technical assistance programs, grants and direct assistance in the form of equity investments, guarantees and credit to private companies in member countries. ADB is owned by 67 members, including 48 from the region. In 2007, it approved USD 10.1 billion in loans, USD 673 million in grant projects and technical assistance amounting to USD 243 million.
About The Japan Fund for Poverty Reduction (JFPR):
The Japan Fund for Poverty Reduction (JFPR) was established by the Japanese Government and the Asian Development Bank (ADB) in May 2000. The Fund has total assets of USD 392 million. JFPR’s goals are to help ADB clients by providing relief to the poor as well as assisting the poor with own income generation. JFPR assists with programs implemented by local populations [2]. Grants from the JFPR range from USD 200,000 to USD 2 million. Between May 2000 and June 2006, the country of Japan contributed USD 360 million to the JFPR. At the end of December 2006, it had approved 90 grants worth USD 244 million. Among these were nine grants worth USD 98 million for Afghanistan and nine totaling USD 20 million for tsunami response projects in India, Indonesia, Maldives and Sri Lanka.
About Small Industries Development Bank of India (SIDBI):
The Small Industries Development Bank of India (SIDBI) was established by the Indian Parliament in 1990. It provides credit to large- and medium-scale microfinance institutions (MFIs). SIDBI reports having facilitated total financial assistance equivalent to USD 397 million during the fiscal year ending March 2009. This amount has gone toward various ventures such as term loans, equity support and capacity building grants to MFIs. SIDBI is listed on, but does not report data to, the MIX Market.
Sources and Additional Resources:
[1] MicroCapital Universe: Asian Development Bank. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asi…
[2] Japan Fund for Poverty Reduction. http://www.adb.org/jfpr/
[3] Asian Development Bank. “ADB, Japan to Support India‘s ‘Missing Middle’ Group of Women Microentrepreneurs,” May 26, 2010. http://www.adb.org/Media/Articles/2010/13246-indian-skills-developments/
MicroCapital Universe: Japan Fund for Poverty Reduction. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=jap…
MicroCapital Universe: Small Industries Development Bank of India. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sma…
MIX Market. “MIX Asia 100 Microfinance Institutions.” http://www.themix.org/sites/default/files/2007%20MIX%20Asia%20100.pdf
Browse the MicroCapital Universe and add your entry to the wiki https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROFINANCE EVENT: Global SME Finance Forum; September 12-14, 2023; Mumbai, India
- MICROCAPITAL BRIEF: Bank of Maldives Borrowing $40m from ADB, JICA, OeEB, for Blue Economy, SMEs, Tourism
- MICROFINANCE PAPER WRAP-UP: “Impact of Microcredit on Household Consumption and Assets in Nepal;” by Shalik Ram Pokhrel
- MICROCAPITAL BRIEF: ADB, FinDev Canada to Partner on Investments in Market Development; Women’s Empowerment; Climate Change Adaptation, Mitigation in Asia, Pacific
- MICROCAPITAL BRIEF: World Bank ARISE Program Includes $230m Loan for Farmers in Ukraine
