Through its Gateway Microfinance Infrastructure Fund (GMI), ACCION International, a private, nonprofit organization with 35 microfinance institution (MFI) partnerships worldwide, has announced an unspecified investment in United Villages, Inc., a rural Internet Service Provider which provides people in the developing economies a voicemail box, an email address, and Internet access for less than $1 per person.
ACCION’s GMI, established in June 2006, invests in organizations that help the microfinance industry achieve greater scale and efficiency. The fund invests in areas such as banking technology, software companies, credit bureaus, payment systems, remittances, micro-insurance and ratings agencies. Through its First Mile Solutions division, United Villages has developed a “drive-by” WiFi network. It installs low-cost Mobile Access Points (MAPs) on existing rural transportation infrastructure (buses, taxis, etc). User transactions are stored on WiFi-enabled kiosk computers that are placed on rural village roads. Transaction data is transferred to the MAPs once in range. The MAPs bilaterally transmit the data to kiosks when they are connected to the Internet, creating a store-and-forward “drive-by” WiFi network. United Villages then sells prepaid cards to kiosk operators and local resellers who in turn provide face-to-face support for United Village’s products and services while making a profit.
The investment in United Villages will also include a board observer role for ACCION. Together, the two groups will explore the potential of the remote-access technology in providing financial products and services through ACCION’s 35 partner MFIs throughout Latin America, Africa, and Asia. In the last ten years, ACCION partners have disbursed more than 14 million loans totaling more than USD 9.4 billion. Currently, the ACCION International network serves about 2.46 million clients through an active loan portfolio of USD 2 billion.
Financial data on ACCION’s Gateway Microfinance Infrastructure Fund (GMI) is not available.
-Steven Craig
Additional Resources
ACCION International: http://www.accion.org/media_noteworthy.asp_Q_N_E_382
United Villages: http://www.unitedvillages.com/
First Mile Solutions: http://www.firstmilesolutions.com/
ACCION International: http://www.accion.org/media_press_releases_detail.asp_Q_NEWS_E_265.
MicroCapital.org article, July 18, 2006: ACCION International Announces the Gateway MicroFinance Infrastructure Fund
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