The island nation of Cape Verde, with the support of Luxembourg-based NGO ADA, which was founded in 1994 as Appui au Développement Autonome, has established a new law enabling a regulatory framework intended to be more conducive to microfinance. The new rules define the role of Banco de Cabo Verde, the country’s central bank, as supervisor of the sector; allow microfinance institutions (MFIs) to accept savings from the public; and include unspecified measures intended to increase transparency. The new law is set to come to force in mid-2015. The goal of the changes is to encourage growth in the microfinance market through avenues including increased foreign investments.
As of 2013, ADA reported total revenues of EUR 10.4 million (USD 13.4 million) and net income of EUR 66,400 (USD 85,700). As of the same year, ADA had active projects in 23 countries and supported 150 MFIs serving approximately 5 million beneficiaries.
As of May 2014, Banco de Cabo had totals assets of CVE 49 billion (USD 584 million); during 2013, it experienced revenues of CVE 242 million (USD 2.8 million) and net losses of CVE 95 million (USD 1.13 million).
By Simon Pfanner – Research Associate
About Appui au Développement Autonome (ADA)
ADA, formerly known as Appui au Développement Autonome, is a nonprofit organization based in Luxembourg. ADA supports inclusive finance professionals in an effort to help the approximately 2.5 billion adults outside of the conventional financial system to reach their goals. ADA’s activities include developing new financial products, assisting in the capacity building of microfinance institutions (MFIs) and improving information on and awareness of microfinance activities. For 2013, ADA reported total revenues of EUR 10.4 million (USD 13.4 million) and net income of EUR 66,400 (USD 85,700). As of the same year, ADA had active projects in 23 countries and supported 150 MFIs serving approximately 5 million beneficiaries.
About Banco de Cabo Verde (BCV)
Banco de Cabo Verde (BCV) is the central bank of Cape Verde and is located in Praia, the capital of the country. It was established in 1975 as a commercial bank with central banking functions and was responsible for foreign exchange, treasury and commercial affairs. Regulations issued in 1993 split the commercial operations from Banco de Cabo Verde into Banco Comercial do Atlantico. As of 2014, BCV’s responsibilities include the supervision and control of financial institutions and CUT NEXT TWO of the monetary markets. As of May 2014, BCV had totals assets of CVE 49 billion (USD 584 million); during 2013, the institution experienced revenues and net losses of CVE 242 billion (USD 2.8 million) and CVE 95 million (USD 1.13 million), respectively.
Sources and additional information
ADA News, Une nouvelle loi pour la finance inclusive au Cap Vert
MicroCapital, July 24, 2014, CGAP (Consultative Group to Assist the Poor) Transfers Management of French-language Training to Luxembourg-based ADA, Côte d’Ivoire-based Africa Microfinance Network (AFMIN)
MicroCapital, July 19, 2014, CGAP (Consultative Group to Assist the Poor) Seeks Responses to “Global Pulse Survey on Responsible Digital Finance” by August 8, 2014
MicroCapital, October 8, 2013, Moody’s Analytics Partners with Africa Microfinance Network (AFMIN) to Deliver Social Performance Assessments (SPAs) in Sub-Saharan Africa
MicroCapital, September 25, 2013, Luxembourg-based Appui au Developpement Autonome (ADA) Appoints Arnaud Servais Executive Director
MicroCapital Universe Profile: ADA
MicroCapital Universe Profile: Banco de Cabo Verde
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: Cubo Raises $3.5m in Debt, Equity to Boost Acceptance of Digital Payments by Microenterprises in Central America
- MICROCAPITAL BRIEF: MLF Malawi Partnering with ADA, Grameen Credit Agricole to Develop Digital Finance for Women Farmers
- MICROFINANCE EVENT: Invest in Africa Summit; April 16-17, 2024; the Hague, the Netherlands
- MICROCAPITAL BRIEF: ABI to Leverage $69m from EIB to Boost SME, Mid-cap Financing in West Africa – Focusing on Women, Youth
- MICROCAPITAL BRIEF: Zanaco Borrows $50m from BII to Support MSMEs, Climate-change Mitigation in Zambia