MICROCAPITAL BRIEF: Department for International Development (DFID) to Donate $2m to 12 Pakistani Financial Institutions to Support Innovation in Rural Agricultural Finance

The Department for International Development (DFID), a development agency of the British government, reportedly has pledged to donate a total of PKR 240 million (USD 2.4 million) to 12 Pakistani financial institutions to support the implementation of proposed innovations in rural and agricultural financing. Continue reading

MICROCAPITAL BRIEF: SME Bank Receives $58m from Government of Namibia to Expand to all 14 Regions of Country

SME Bank, which was founded by the government of Namibia in 2012, is preparing to receive NAD 630 million (USD 58.7 million) in non-reimbursable funding from the government of Namibia to expand its operations to all 14 regions of the country, with the intention of fueling growth among the small and medium-sized enterprises.

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MICROCAPITAL BRIEF: India-based Ujjivan Financial Services Disburses Loans Totaling $166m Via Direct Deposit to Bank Accounts

Ujjivan Financial Services, a Bangalore-based microfinance institution, has disbursed local currency loans totaling the equivalent of USD 166 million, approximately 50 percent of its total loan disbursements this year, directly to customer’s bank accounts. Continue reading

MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Invest $25m in Proyectos Educativos Integrales del Peru to Establish Educational Institutions for Low-Income Students

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has announced a USD 25 million investment in Proyectos Educativos Integrales del Peru (PEIP), an education company, to create a university and a network of technical institutes to educate low-income students in Peru. Continue reading

MICROFINANCE PUBLICATION WRAP-UP: “The Microfinance Sector in Morocco: Investment Opportunities After the Crisis;” Published by MicroFinanza Rating

“The Microfinance Sector in Morocco: Investment Opportunities After the Crisis,” published as part of the Insight series by MicroFinanza Rating, May 2014, 4 pages, available at http://www.microfinanzarating.com/images/Insight_Morocco_March_2014.pdf

Performed by Italy’s MicroFinanza Rating in May 2014, this “country screening” analyzes the political, economic and legal frameworks in which microfinance institutions (MFIs) function in Morocco. Continue reading

MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Invests $500k in Equity to Acquire 8% of Kenyan Microinsurer Agriculture and Risk Enterprise (ACRE), Loans $334k to Ecumenical Church Loan Fund (ECLOF) for Technical Assistance

The Grameen Credit Agricole Microfinance Foundation (GCAMF), which is based in Luxembourg and invests in “social businesses,” recently informed MicroCapital that it has made an investment of USD 500,000 in Nairobi-based Agriculture and Risk Enterprise Limited (ACRE), a microinsurance provider that aims to launch products in East and West Africa in exchange for an 8-percent stake in the company. Continue reading

MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $3m to Indonesia’s Mitra Bisnis Keluarga Ventura (MBK), $1m to Azerbaijan’s Finance for Development (FinDev)

The Luxembourg-based Grameen Credit Agricole Microfinance Foundation (GCAMF), which provides financial services to “social businesses,” recently informed MicroCapital that it has provided a three-year local-currency loan equivalent in value to EUR 2.1 million (USD 2.9 million) to Mitra Bisnis Keluarga Ventura (MBK), a microfinance institution (MFI) located in Indonesia. Continue reading

MICROCAPITAL BRIEF: Biniog Sathi Banking Model Employs Islamic Concept of Zakat in Effort to Minimize Credit Default

Mabroor Mahmood, who operates the online “Ideas for Development” think tank, recently began selling his Biniog Sathi banking model, which incorporates Zakat, a Muslim practice of giving charity, to protect against credit default [1]. Continue reading

MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $25m to Bank of Georgia for On-lending to Micro, Small Enterprises (MSEs)

Bank of Georgia, a Tbilisi-based commercial bank that offers corporate and retail banking, wealth management, brokerage and insurance services in Georgia, Ukraine and Belarus, recently borrowed EUR 18.5 million (USD 25.2 million) under a senior loan agreement from the European Fund for Southeast Europe (EFSE), a Luxembourg-based, government-backed microfinance investment vehicle. Continue reading

MICROCAPITAL BRIEF: “Harry Potter” Cinema Actress Emma Watson to Serve as Goodwill Ambassador for United Nations (UN) Women

United Nations (UN) Women, the UN organization “dedicated to gender equality and the empowerment of women,” has announced Emma Watson, a British actress, will serve as Goodwill Ambassador for the organization. Continue reading

MICROCAPITAL BRIEF: Citigroup, Overseas Private Investment Corporation (OPIC) Jointly Loan $10m to Microfinance Institution (MFI) ACBA Credit Agricole Bank of Armenia

Citigroup, a financial services corporation based in the US city of New York, and Overseas Private Investment Corporation (OPIC), a government-backed development finance institution based in Washington DC, recently announced that they will partner to fund two jointly funded loans with a total value of USD 10 million for ACBA Credit Agricole Bank (formerly known as the Agricultural Cooperative Bank of Armenia), a Yerevan-based microfinance institution (MFI) that specializes in the financing of the agriculture sector of Armenia. Continue reading

MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $200k to Mec Fadec of Senegal, $680k to TIAVO of Madagascar

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based organization founded by French Bank Credit Agricole and Bangladeshi NGO Grameen Trust, recently informed MicroCapital that it has disbursed the second half of a loan in local currency equal to EUR 152,000 (USD 207,000) to Mec Fadec, a Senegalese microfinance institution (MFI), and a loan of EUR 500,000 (USD 681,000) to Tahiry Ifamonjena Amin’ny Vola (TIAVO), a Madagascar-based MFI. Continue reading

MICROCAPITAL BRIEF: International Finance Corporation (IFC) Increases Syndicated Loan to National Development Bank of Sri Lanka from $125m to $200m for On-Lending to Micro-, Small, Medium-Sized Enterprises (MSMEs)

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has increased the size of the syndicated loan that it provided in March 2014 to the National Development Bank (NDB), a financial services company owned by the government of Sri Lanka, from USD 125 million to USD 200 million. Continue reading

MICROFINANCE PUBLICATION WRAP-UP: “FinDev Azerbaijan: Retaining Key Staff Through a ‘Pay for Performance’ Culture;” by Sevda Huseynova, Jalal Aliyev, Kinga Dabrowska; published by Microfinance Centre

“FinDev Azerbaijan: Retaining Key Staff Through a ‘Pay for Performance’ Culture;” by Sevda Huseynova, Jalal Aliyev and Kinga Dabrowska; published by the Microfinance Centre; March 2014; 7 pages; available at http://www.mfc.org.pl/sites/mfc.org.pl/files/FinDev_SP_Fund_ENG.pdf

The authors of this paper describe Finance for Development Limited Liability Company (LLC) (FinDev), an Azerbaijan-based institution that offers economic opportunities for poor people, particularly the evolution of its “staff performance appraisal system and salary compensation scheme.” Continue reading

MICROFINANCE PUBLICATION WRAP-UP: “The Promise of Microfinance and Women’s Empowerment; What Does the Evidence Say?;” by Dina Pomeranz; published by EY (Ernst & Young)

“The Promise of Microfinance and Women’s Empowerment; What Does the Evidence Say?;” by Dina Pomeranz; published by EY (Ernst & Young Global Limited), February 2014; 24 pages; available at http://www.ey.com/Publication/vwLUAssets/EY_-_Microfinance_and_womens_empowerment/$FILE/EY-The%20promise-of-microfinance-and-womens-empowerment.pdf

In this paper, Dr Pomeranz gives a brief overview of the history of microfinance as well as is discussing the “size, magnitude and geographical reach” of the sector, citing that approximately 3,600 microfinance institutions (MFIs) served 200 million customers globally as of 2010. Continue reading