MICROCAPITAL BRIEF: responsAbility Investments Lends $4m to Opportunity International Bank of Malawi

ResponsAbility Investments AG, a Swiss-based investor in microfinance and other sectors, recently announced the disbursement of a loan of USD 4 million to Opportunity International Bank of Malawi Limited (Opportunity Malawi), a member of the US-based Opportunity International network. The loan is intended to support Opportunity Malawi’s financing of farmers and small and medium-sized enterprises (SMEs) in the country. Further details, such as the terms of the loan, have not been disclosed.

The US-based nonprofit Microfinance Information Exchange (MIX) reports that, as of December 31, 2013, Opportunity Malawi had total assets of USD 42 million, a gross loan portfolio of USD 17.7 million, approximately 61,500 active borrowers, 497,000 depositors with USD 22.2 million in deposits, return on equity (ROE) of 4.39 percent and return on assets (ROA) of 1.23 percent. As of March 2014, responsAbility reported total assets under management of approximately USD 2 billion.

By Chikondano Faith Chisala, Research Associate

About Opportunity International Bank of Malawi (Opportunity Malawi): A member of the Opportunity International network, Opportunity International Bank of Malawi (Opportunity Malawi) was granted a full commercial banking license in 2002 and opened its first branch in 2003. Opportunity Malawi targets economically active Malawians living in underserved areas such as semi-urban and rural areas. The US-based nonprofit data provider Microfinance Information Exchange (MIX) reported that, as of December 31, 2013, Opportunity Malawi had total assets of USD 42 million, a gross loan portfolio of USD 17.7 million, approximately 61,500 active borrowers, USD 22.2 million in deposits with 497,000 depositors, return on equity (ROE) of 4.39 percent and return on assets (ROA) of 1.23 percent.

About responsAbility: Founded in 2003, responsAbility Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and services in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. ResponsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue. As of March 2014, responsAbility reported total assets under management of approximately USD 2 billion.

Sources and Additional Resources

[1] Information provided to MicroCapital by responsAbility, April 2014

MicroCapital, February 13, 2014, “responsAbility Loans $20m to Microlender Enda Inter-Arabe of Tunisia,” https://www.microcapital.org/microcapital-brief-responsability-loans-20m-to-microlender-enda-inter-arabe-of-tunisia/

MicroCapital, April 8, 2013, “Opportunity International, MicroEnsure Launch Savings-Linked Education Insurance Program, EduSave, in Malawi,” https://www.microcapital.org/microcapital-brief-opportunity-international-microensure-launch-savings-linked-education-insurance-program-edusave-in-malawi/

MicroCapital, January 17, 2012, “responsAbility Lends $3m to Microfinance Institutions Advans Cameroun, Opportunity International Bank of Malawi,” https://www.microcapital.org/microcapital-brief-responsability-lends-3m-to-microfinance-institutions-advans-cameroun-opportunity-international-bank-of-malawi/

MicroCapital Universe Profile: Opportunity International Bank of Malawi, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+International+Bank+of+Malawi

MicroCapital Universe Profile: responsAbility Investments AG,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

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Chikondano Faith joined MicroCapital after holding various rolse at a commercial bank, where she improved and diversified her skill set by exploring many banking functions including: trading, treasury management, credit analysis and business development. She developed an interest challenges faced by entrepreneurs in emerging economies after taking up a small business development and entrepreneurship course during her undergraduate studies at the University of Pretoria in Pretoria, South Africa. She holds also Masters degree in Strategic Management from the University of Derby, her independent study topic focused on strategies to support Small and Medium Enterprises (SMEs) in Malawi. In working with MicroCapital, she hopes to expand her knowledge of microfinance and to use this internship as a foundation to pursue a career in micro and developmental finance. Chikondano Faith enjoys travel, drawing, jazz music, and improving her French during her spare time.