MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $2m to FINCA DRC of Democratic Republic of the Congo, First Allied Savings and Loans Limited (FASL) of Ghana

responsAbility Social Investments AG, an investment company based in Switzerland, has recently reported to MicroCapital that it has made loans totaling USD 2 million to microfinance institutions (MFIs) in Democratic Republic of the Congo and Ghana.

The responsAbility Microfinance Leaders Fund (rAMLF), the responsAbility Global Microfinance Fund (rAGMF) and Mikrofinanz-Fonds, microfinance investment vehicles (MIVs) managed by responsAbility, invested USD 500,000; USD 200,000; and USD 500,000 respectively in FINCA DRC, an MFI that provides group loans in urban and rural areas of Democratic Republic of the Congo [1]. In 2009, FINCA DRC reported to the Microfinance Information Exchange (MIX), the microfinance clearinghouse, total assets of USD 16.5 million, a gross loan portfolio of USD 10.4 million, approximately 44,500 borrowers, return on assets (ROA) of 5.33 percent and return on equity (ROE) of 38.22 percent. FINCA DRC’s parent organization, FINCA International, is a global microfinance network operating in 21 countries with total assets of USD 467 million as of 2009 [2].

In Ghana, rAMLF, rAGMF and Mikrofinanz-Fonds further invested USD 250,000; USD 500,000; and USD 250,000 respectively in First Allied Savings and Loans Limited (FASL), an MFI that provides savings and credit facilities to micro- and small businesses [1]. In 2009, FASL reported to MIX total assets of USD 35.9 million, a gross loan portfolio of USD 16.8 million, approximately 16,400 borrowers, return on assets (ROA) of 2.92 percent and return on equity (ROE) of 16.58 percent.

By Medha Ravi, Research Associate

About responsAbility Social Investments AG:
Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company whose products aim to enable investors to earn a financial return while assisting people in developing countries and emerging markets to access markets, information and other services in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. According to calculations based on data from the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets. 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.

About responsAbility Microfinance Leaders Fund (rAMLF):
The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. The Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that certifies that investment vehicles actually invest in the microfinance sector, renewed rAMLF’s label as of April 2010. rAMLF reported 129 active investments in microfinance in 2010 and total fund assets of USD 160 million.

About responsAbility Global Microfinance Fund (rAGMF):
rAGMF is a microfinance vehicle (MIV) managed by responsAbility that invests in microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), mostly through short- to medium-term debt securities. rAGMF also invests up to 10 percent of its assets in the equity of MFIs. In April 2010, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector. rAGMF reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it had USD 474 million in fund assets as of 2010.

About Mikrofinanz-Fonds:
Mikrofinanz-Fonds is a microfinance investment vehicle (MIV) that was launched in 2007, is managed by responsAbility Social Investments AG of Switzerland and is funded by German financial institutions Bank im Bistum Essen and Stadtsparkasse Dusseldorf. It invests in microfinance institutions (MFIs) through debt securities and equity investments. Mikrofinanz-Fonds reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it held USD 103 million in assets as of 2010. The Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds as of April 2010.

About FINCA DRC:
Established in 2003 and based in Democratic Republic of the Congo, FINCA DRC is a microfinance institution (MFI) that serves rural and urban clients through group loans. As of 2009, FINCA DRC reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 16.5 million, a gross loan portfolio of USD 10.4 million, approximately 44,500 borrowers, return on assets (ROA) of 5.33 percent and return on equity (ROE) of 38.22 percent. FINCA DRC’s parent organization, FINCA International, is a global microfinance network operating in 21 countries with total assets of USD 450 million as of 2008 [2].

About First Allied Savings and Loans Limited (FASL):
First Allied Savings and Loans Limited (FASL) is a deposit-taking microfinance institution (MFI) that was incorporated in Ghana in 1995. FASL was established to provide savings and credit opportunities to micro- and small businesses. As of 2009, FASL reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 35.9 million, a gross loan portfolio of USD 16.8 million, approximately16,400 active borrowers, return on assets (ROA) of 2.92 percent and return on equity (ROE) of 16.58 percent.

About FINCA International:
Founded in 1984 by Dr John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA) International is a global microfinance network based in Washington, DC, serving approximately 700,000 people through its subsidiaries in 21 countries. As of 2009, it had total assets of USD 467 million, with an operating profit of USD 742,000.

Source and Resources:

[1] Data submitted by responsAbility Social Investments AG to MicroCapital January 2011

[2] MicroCapital’s Microfinance Universe Profile: FINCA International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

MicroCapital.org story, January 10, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $13m to Banco Continental of Paraguay, Financiera Confianza of Peru”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-makes-loans-totaling-13m-to-banco-continental-of-paraguay-financiera-confianza-of-peru/

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

MicroCapital’s Microfinance Universe Profile: responsAbility Microfinance Leaders Fund (rAMLF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+%28rAMLF%29

MicroCapital’s Microfinance Universe Profile: responsAbility Global Microfinance Fund (rAGMF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29

MicroCapital’s Microfinance Universe Profile: Mikrofinanz-Fonds, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds

MicroCapital’s Microfinance Universe Profile: FINCA DRC, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+DRC

MicroCapital’s Microfinance Universe Profile: First Allied Savings and Loans Limited (FASL), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=First+Allied+Savings+and+Loans+Limited+%28FASL%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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