MICROFINANCE PUBLICATION ROUND-UP: Partnerships in Mobile Financial Services; Africa Microfinance Pricing Reports; Impact Assessment of EFC Zambia

Partnerships in Mobile Financial Services: Factors for Success;” by Mark Flaming, Aiaze Mitha, Michel Hanouch, Peter Zetterli and Greta Bull; published by the MasterCard Foundation and the International Finance Corporation (IFC); October 2013; 18 pages; available at http://www.ifc.org/wps/wcm/connect/88486280414940acb54ab79e78015671/Partnerships+in+Mobile+Financial+Services.pdf?MOD=AJPERES

This report presents findings from a study exploring the factors that determine the success of business partnerships among telecommunication firms, financial institutions and other organizations in providing mobile financial services. These services are structurally complex by nature and require expertise in banking, telecommunications, technology, marketing, operations and distribution channels. Through an analysis of case studies drawn from Cambodia, Ghana, Kenya and Pakistan, the authors find that the most important success factors are having a long-term plan for the division of revenue among partners, operating in an accommodating regulatory environment and the successful definition of partner roles in alignment with corporate strategy and competitive advantage.

“Microfinance Pricing Reports;” published by MFTransperency; October 2013; 15-19 pages; available at http://www.mftransparency.org/resources/

These five reports provide an analysis of new pricing data from five African countries, Ghana, Malawi, Rwanda, Tanzania and Uganda. The reports detail the prices paid by microfinance borrowers in the respective countries, including ratings of lenders’ financial transparency and statistics regarding lenders’ average loan sizes, interest rates, number of clients served, market share and the number of products offered. The reports also include information pertaining to transparent pricing practices including whether the lender calculates interest based on declining balances, requires compulsory insurance or deposits, or charges multiple fees. With the exception of Malawi, where its report indicates that roughly 65 percent of borrowers benefit from transparently-priced loans, no more than 25 percent of loans are deemed to be priced transparently in the countries studied.

“Impact Assessment of EFC Zambia;” by France Michaud and Karine Faucher-Boivin; published by Developpement International Desjardins (DID); 2013; 44 pages; available at http://www.bio-invest.be/nl/component/downloads/downloads/83.html

This report evaluates the impact of the Entrepreneur Financial Centre (EFC) that was established by Canadian NGO Developpement International Desjardins (DID) in Zambia in 2009. EFC Zambia provides financing to micro-, small and medium-sized enterprises; housing loans; and microloans targeted towards women market traders. Through an analysis of EFC data and interviews with clients and employees, the authors find that EFC Zambia satisfies a long-standing need of entrepreneurs for financing; achieves quality service by establishing and maintaining long-lasting relationships with clients; and creates and maintains new jobs directly and indirectly by assisting Zambian entrepreneurs with maintaining and growing their businesses.

By Makai McClintock, Research Associate

Sources and Additional Resources:

“Partnerships in Mobile Financial Services: Factors for Success,”
http://www.ifc.org/wps/wcm/connect/88486280414940acb54ab79e78015671/Partnerships+in+Mobile+Financial+Services.pdf?MOD=AJPERES

“Country Pricing Reports,”
http://www.mftransparency.org/homeslide/available-now-country-pricing-reports-cprs/

“Impact Assessment of EFC Zambia,”
http://www.microfinancegateway.org/gm/document-1.9.62902/Impact%20EFC%20Zambia.pdf

MicroCapital Universe Profile: International Finance Corporation (IFC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: MFTransparency
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MFTransparency

MicroCapital Universe Profile: Developpement International Desjardins (DID)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=D%C3%A9veloppement+international+Desjardins+%28DID%29

MicroCapital Story, November 7, 2013, “International Finance Corporation (IFC) Makes $3m Equity Investment in Bina Usaha Keluarga (BUK) of Indonesia, Seeking to Triple Female Clients of Microfinance Institution Mitra Bisnis Keluarga Ventura (MBK),” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-makes-3m-equity-investment-in-bina-usaha-keluarga-buk-of-indonesia-seeking-to-triple-female-clients-of-microfinance-institution-mitra-bis/

MicroCapital Story, May 1, 2013, “International Finance Corporation, Bank of Shanghai Launch $80m Loan, Advisory Program Supporting Energy Upgrades for Small, Medium-sized Enterprises,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-bank-of-shanghai-launch-80m-loan-advisory-program-supporting-energy-upgrades-for-small-medium-sized-enterprises/

MicroCapital Story, July 2, 2012, “International Finance Corporation (IFC) to Loan $50m to Jiangsu Financial Leasing of China for On-lending to Small and Medium-Sized Enterprises (SMEs) in Education, Healthcare,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-loan-50m-to-jiangsu-financial-leasing-of-china-for-on-lending-to-small-and-medium-sized-enterprises-smes-in-education-healthcare/

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