MICROCAPITAL BRIEF: MFX Solutions, Fonds pour l’Inclusion Financière en République Démocratique Congo to Provide Technical Assistance to Banks, Microfinance Institutions (MFIs)

MFX Solutions, a US-based company that provides currency hedging solutions for microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), recently announced that it has entered into a two-year technical assistance partnership with Fonds pour l’inclusion financière en république démocratique Congo, a nonprofit microlending organization in the Democratic Republic of Congo (DRC) that is known by its English acronym FPM, in an effort to help financial institutions better manage risks. MFX Solutions and FPM will help Congolese banks and MFIs augment their asset-liability management practices by providing them with training sessions and tools, including the Comprehensive Asset/Liability Management (CALM) tool, which was designed by MFX Solutions to assist financial institutions in managing risks associated with sudden economic shocks. Supported by the World Bank Group’s International Finance Corporation and the Canadian International Development Agency, the collaboration is intended to promote investment flows into the country.

As of 2013, MFX Solutions reports an active portfolio of USD 240 million in swaps and forwards. As of 2012, FPM reported a gross loan portfolio of USD 6 million. During 2012, 76,000 new savers opened accounts with FPM, with 38 percent of those new clients being women.

By Tejas Jain, Research Associate

About MFX Solutions

MFX Solutions is a US-based microfinance currency risk management company that was started in 2008 by Accion, a private, US-based nonprofit organization; the Calvert Foundation, a US-based nonprofit organization specializing in social impact investment; MicroRate, a for-profit microfinance rating company; Global Partnerships, a US-based nonprofit organization that supports microfinance institutions in Latin America; and Calmeadow Foundation, a Canadian nongovernmental organization (NGO). MFX provides hedging products and risk management education to entrepreneurs in low-income countries. As of 2013, MFX Solutions reports an active portfolio of USD 240 million in swaps and forwards. MFX Solutions has contracts with 32 microfinance funds and foundations.

About Fonds pour l’inclusion financière en république démocratique Congo

Fonds pour l’inclusion financière en république démocratique Congo is a nonprofit  microlending organization that was established in the Democratic Republic of Congo (DRC) in 2007 and is known by its English acronym FPM. It aims to reduce poverty in DRC by increasing access to financial and technical assistance services for micro-, small and medium-sized enterprises (MSMEs) as well as low-income households. It is funded by German development bank Kreditanstalt für Wiederaufbau (KfW), the United Nations Development Programme (UNDP), the United Nations Capital Development Fund (UNCDF) and the US-based World Bank. As of 2012, FPM reported a gross loan portfolio of USD 6 million. In 2012, 76,000 new savers opened accounts with FPM, with 38-percent of those new clients being women. As of 2012, it had funded 3,600 MSMEs.

Sources and Additional Resources:

MFX Solutions, February 12, 2014, “MFX and FPM Partnership brings Asset/Liability Management (ALM) to The Democratic Republic of the Congo,”
http://mfxsolutions.com/news/mfx-and-fpm-partnership-brings-assetliability-management-alm/

MicroCapital Story, November 4, 2013, “Développement International Desjardins (DID) Invests in Microfinance Currency Hedging Company MFX Solutions,”
https://www.microcapital.org/microcapital-brief-developpement-international-desjardins-did-invests-in-microfinance-currency-hedging-company-mfx-solutions/

MicroCapital Story, July 15, 2013, “MFX Solutions Launches “Risk Management Initiative in Microfinance (RIM)” for Microfinance Institutions,”
https://www.microcapital.org/microcapital-brief-mfx-solutions-launches-risk-management-initiative-in-microfinance-rim-for-microfinance-institutions/

MicroCapital Story, March 1, 2013, ”MFX Solutions Releases French Version of Comprehensive Asset/Liability Management (CALM) Tool for Microfinance Institutions,”
https://www.microcapital.org/microcapital-brief-mfx-solutions-releases-french-version-of-comprehensive-assetliability-management-calm-tool-for-microfinance-institutions/

MicroCapital Universe Profile, MFX Solutions,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MFX+Solutions+LLC+%28MFX%29

MicroCapital Universe Profile, Fonds pour l’inclusion financière en république démocratique Congo (FPM),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fonds+pour+l%E2%80%99inclusion+financi%C3%A8re+en+r%C3%A9publique+d%C3%A9mocratique+Congo

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

Similar Posts: