The Kenya Women Finance Trust (KWFT), a Kenyan deposit-taking microfinance institution (MFI), recently received a EUR 2 million (USD 2.6 million) loan from Incofin’s Rural Impulse Fund (RIF) II, a Belgian microfinance investment vehicle (MIV). The intended use of the loan has not been announced.
In related news, Incofin Investment Management (IM), a Belgian firm that develops and manages funds, has announced it will finance a technical assistance project at AB Bank Zambia, a Zambian commercial bank and member of Germany’s Access Microfinance Holding network. The project is the first outgrowth from a technical assistance agreement between Incofin IM and the African Development Bank (AfDB), a development bank that provides loans and grants to governments and private companies in Africa. The goal of the partnership is to assist investees in which RIF II hold equity. The grant from Incofin IM will finance technical assistance services provided to AB Bank Zambia by LFS Financial Systems GbmH, a German management and consulting company that founded Access Microfinance Holding. The money will also be used to train local Zambian staff and improve the provision of agro-loans. The amount of the grant has not been released.
As of 2011, KWFT had total assets of USD 201 million, a gross loan portfolio USD 135 million, deposits of USD 83.3 million and approximately 279,000 borrowers. As of October 31, 2011, Rural Impulse Fund II has outstanding investments of EUR 33.1 million (USD 46.0 million) and a fund size of EUR 120 million (USD 173 million). As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries. While financial information for AB Bank Zambia is not available, Access Microfinance Holding reports committed capital of EUR 26.4 million (USD 37 million). The six microbanks affiliated with AccessHolding are located in Africa and Central Asia.
By Charlotte Newman, Research Associate
About Kenya Women Finance Trust
Kenya Women Finance Trust (KWFT) is a Kenyan microfinance institution that was established in 1982. KWFT provides microfinance services exclusively to women. KWFT received a license to accept deposits nationwide in 2010. According to the non-profit, US-based data provider Microfinance Information Exchange (MIX) as of 2011 KWFT had total assets of USD 201 million, a gross loan portfolio USD 135 million outstanding to 279,850 borrowers, deposits of USD 83.3 million from 565,049 depositors, return on assets (ROA) of 1.2 percent and return on equity (ROE) of 12.21 percent.
About Incofin Rural Impulse Funds
The Incofin Rural Impulse Funds (RIF) were launched by Incofin Investment Management to invest in rural microfinance institutions (MFIs) that are deemed commercially viable. The two funds include Rural Impulse Fund I and Rural Impulse Fund II. They target both farm and non-farm populations in small towns and villages. The funds invest primarily through loans, though they make equity investments and guarantees as well. As of October 31, 2011, Rural Impulse Fund I has outstanding investments of EUR 25.7 million (USD 35.9 million) and a fund size of EUR 30 million (USD 38 million), while Rural Impulse Fund II has outstanding investments of EUR 33.1 million (USD 46.0 million) and a fund size of EUR 120 million (USD 173 million).
About Incofin Investment Management
Incofin Investment Management is a private Belgian company that develops and manages funds investing in microfinance institutions (MFIs) in developing countries. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries.
About Access Microfinance Holding AG
Access Microfinance Holding AG (AccessHolding) was established in 2006 in Germany by LFS Financial Systems GmbH (LFS). It invests in microfinance institutions (MFIs) and aims to develop its investments through equity finance, holding services and management services rendered by LFS, which acts as its technical partner. AccessHolding establishes new MFIs together with external partners and transforms existing non-bank microlending institutions into microfinance banks that offer a wider range of services such as deposits. AccessHolding is a joint-stock company with committed capital of EUR 26.4 million (USD 37 million). As of March 2012, AccessHolding has investments in AccesBanque Madagascar (39.2 percent share); AccessBank Azerbaijan (16.5 percent share); AccessBank Tanzania (42.9 percent share); AB Microfinance Bank Nigeria Limited (50.1 percent share); AccessBank Liberia (52 percent share); and AccessBank Tajikistan (52 percent share).
About African Development Bank
Established in 1964, the African Development Bank (AfDB) provides loans and grants to governments and private companies in Africa. Owned and funded by member governments, the bank has a mandate to reduce poverty and promote sustainable development. Currently, AfDB shareholders consist of 77 member countries, which include 53 African countries to which it commits a total of approximately USD 3 billion annually. Donald Kaberuka serves as president of AFDB as of 2012.
Sources and Additional Resources:
Incofin Press Release: “KWFT in Kenya Receives a EUR 2 million Loan from Rural Impulse Fund II,” https://www.incofin.com/en/news/kwft-kenya-receives-eur-2-million-loan-rural-impulse-fund-ii?%20October%202012
Incofin Press Release: “Incofin IM Launches a Technical Assistance Project at AB Bank Zambia with the Support of AFD,” https://www.incofin.com/en/news/incofin-im-launches-technical-assistance-project-ab-bank-zambia-support-afd?%20October%202012
MicroCapital.org story, October 16, 2012, “MICROCAPITAL BRIEF: Kenya Women Finance Trust, Samsung Market Phones, Mobile Banking to Women in Kenya,” https://www.microcapital.org/microcapital-brief-kenya-women-finance-trust-samsung-to-market-phones-mobile-banking-to-women-in-kenya/#more-20571
MicroCapital.org story, September 1, 2012, “MICROCAPITAL BRIEF: Incofin Rural Impulse Fund II Completes Equity Investment in Microfinance Institution Azercredit of Azerbaijan, Volksvermogen Raises Stake to 10% in ProEmpresa of Peru,” https://www.microcapital.org/microcapital-brief-incofin-rural-impulse-fund-ii-completes-equity-investment-in-microfinance-institution-azercredit-of-azerbaijan-volksvermogen-raises-stake-to-10-in-proempresa-of-peru/
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