MICROCAPITAL BRIEF: Zambia Passes Secured Transactions Law to Boost Lending to SMEs Based on Movable Collateral

With support from the International Finance Corporation (IFC), a member of the US-based World Bank Group, Zambia recently passed the “Personal Property Security Interest Act”, a law that aims to allow small and medium-sized enterprises (SMEs) to use movable collateral such as equipment, machinery and inventory to access loans. Supporters of the law hope it will “generate USD 2 billion in financing to firms and benefit 6,500 SMEs, 1,200 micro enterprises and 1,200 women entrepreneurs” by 2020. Continue reading

Written by Comments Off on MICROCAPITAL BRIEF: Zambia Passes Secured Transactions Law to Boost Lending to SMEs Based on Movable Collateral Posted in Africa

MICROCAPITAL BRIEF: EBRD Syndicates $21m Loan for Belarusky Narodny Bank for MSMEs in Belarus

The European Bank for Reconstruction and Development, a UK-based multilateral institution, recently announced its intent to arrange a “senior unsecured syndicated A/B loan” of USD 21 million to be lent to micro-, small and medium enterprises (MSMEs) via Belarus’s Belarusky Narodny Bank. The loan is divided into a senior tranche of USD 5 million funded by EBRD and a junior tranche of USD 16 million, which will be “syndicated to financial institutions” other than EBRD. Continue reading

MICROCAPITAL BRIEF: Ericsson Plans Emergency Electronic Wallet System for Disaster Relief

Ericsson, a Sweden-based telecommunications company, recently announced plans to develop an emergency wallet system intended to “enable the distribution and use of digital funds by relief workers and impacted populations, which can help address issues such as safety, expense, and traceability that are associated with handling cash.” This emergency wallet system is part of Ericsson’s “Technology for Good Initiative.” Continue reading

Written by Comments Off on MICROCAPITAL BRIEF: Ericsson Plans Emergency Electronic Wallet System for Disaster Relief Posted in Mobile Money

SPECIAL REPORT: 7th European Microfinance Award: $112k for Education Funding

Christoph Pausch serves as Executive Secretary of the European Microfinance Platform (e-MFP). The European Microfinance Award is jointly organised by the Luxembourg Ministry of Foreign and European Affairs, e-MFP and the Inclusive Finance Network Luxembourg. For more details, please visit http://www.european-microfinance-award.com.

MicroCapital: Why is education access the topic of this year’s Award?

Christoph Pausch: Education is the strongest predictor of economic
well-being, and it can also have a major impact on health, women’s empowerment and even population growth. Unfortunately, Continue reading

MICROCAPITAL BRIEF: India’s SKS Microfinance Changes Name to Bharat Financial Inclusion, in Apparent Continuing Reaction to 2010 Microfinance Crisis in Andhra Pradesh

SKS Microfinance, a for-profit microfinance institution (MFI) headquartered in Hyderabad, India, recently announced it will change its name to Bharat Financial Inclusion [1]. Continue reading

MICROCAPITAL BRIEF: EIB Pledges Venture Capital to Microfinance Institutions, Microfinance Investment Vehicles Operating in the Southern Mediterranean

The European Investment Bank (EIB), the long-term lending institution of the European Union (EU), recently pledged to create a venture capital scheme to support microfinance institutions and microfinance investment vehicles operating in the Middle East and North Africa within the next four months. Continue reading

MICROCAPITAL BRIEF: IFC Lends Burgan Bank of Turkey $60m to Boost Local SMEs’ Access to Finance

The International Finance Corporation (IFC), a member of the World Bank Group, recently announced it has loaned USD 60 million to Burgan Bank A.S., the Turkish subsidiary of Kuwait’s Burgan Bank Group. Continue reading

MICROCAPITAL BRIEF: Ericsson, Rwandan Government to Launch “Rwanda Interconnect Switch” Linking Microfinance Institutions, Banks

Telefonaktiebolaget LM Ericsson (Ericsson), a Swedish communications technology and services corporation, recently announced that it has signed an agreement with the Rwandan Ministry of Finance and Economic Planning to launch a national interoperability switch, known as the Rwanda Interconnect Switch (RIS), which is expected to be operational by early 2017. Continue reading

Written by Comments Off on MICROCAPITAL BRIEF: Ericsson, Rwandan Government to Launch “Rwanda Interconnect Switch” Linking Microfinance Institutions, Banks Posted in Africa

MICROCAPITAL BRIEF: Incofin’s AgRIF, DWM’s Inclusive Finance Equity Fund II Invest $4m in Crystal, a Georgian Microfinance Institution Focusing on Rural Areas

The Agricultural Rural Impulse Fund (agRIF) together with the Inclusive Finance Equity Fund II recently acquired share capital valued at GEL 9 million (approximately USD 4 million) in Joint Stock Company Microfinance Organization Crystal (Crystal), a Georgian microfinance institution. Continue reading

Written by Comments Off on MICROCAPITAL BRIEF: Incofin’s AgRIF, DWM’s Inclusive Finance Equity Fund II Invest $4m in Crystal, a Georgian Microfinance Institution Focusing on Rural Areas Posted in Deals, Eastern Europe and Central Asia

MICROFINANCE EVENT: Second China-UK Microfinance and Rural Finance Conference, July 5-6, 2016, Aberystwyth University, United Kingdom

Event Name: The Second Microfinance and Rural Finance Conference

Event Dates: July 5-6, 2016

Event Location: Aberystwyth University, United Kingdom Continue reading

Written by Comments Off on MICROFINANCE EVENT: Second China-UK Microfinance and Rural Finance Conference, July 5-6, 2016, Aberystwyth University, United Kingdom Posted in Events

MICROCAPITAL BRIEF: Grameen Foundation, Ideas42 Seek to Influence Mobile Money Behavior in the Philippines

Two US-based nonprofits, the microfinance-oriented Grameen Foundation and the behavioral design firm ideas42 recently launched a partnership to support financial inclusion in the Philippines by implementing a combination of behavioral science principles and digital financial services provided through mobile phones. Continue reading

Written by Comments Off on MICROCAPITAL BRIEF: Grameen Foundation, Ideas42 Seek to Influence Mobile Money Behavior in the Philippines Posted in Uncategorized

MICROCAPITAL BRIEF: Kenyas’ Sidian Bank, Zohari Leasing to Finance Uber Driver’s Vehicles

Uber, a US-based car hailing service, and Sidian Bank, a Kenya-based commercial bank, recently announced they will support Uber drivers in the purchase or lease of new vehicles. Continue reading

MICROCAPITAL BRIEF: C-Quadrat’s Dual Return Funds Loan $9.6m to Microfinance Institutions (MFIs) in Bolivia, Cambodia, Columbia, Ecuador, India, Indonesia, Paraguay, Zimbabwe

During April 2016, Austria’s C-Quadrat Asset Management GmbH issued loans worth the equivalent of USD 9.6 million via its two Dual Return Funds to unspecified microfinance institutions (MFIs) in Bolivia, Cambodia, Columbia, Ecuador, India, Indonesia, Paraguay and Zimbabwe. USD 2 million of this total was invested in an MFI based in Phnom Penh, Cambodia, which has 181 service points and provides financial services to clients in rural regions of the country. Financial information on the organization is not available. Continue reading

MICROCAPITAL BRIEF: Equator Capital Acquires Minority Interest in Kenya’s Jamii Bora Bank

Equator Capital Partners LLC, a US-based fund manager, through its fund ShoreCap II Limited, recently acquired a minority interest in Jamii Bora Bank Limited, a commercial bank based in Kenya whose customer base is made up primarily of micro-savers and borrowers. Continue reading

Written by Comments Off on MICROCAPITAL BRIEF: Equator Capital Acquires Minority Interest in Kenya’s Jamii Bora Bank Posted in Africa, Deals

MICROCAPITAL BRIEF: Fairassets, Owner of Indian On-line Peer-to-Peer Lender Faircent, Sells Equity Stakes to Investors Including JM Financial, Aarin Capital, M&S Partners

JM Financial Limited, a financial services firm based in India, recently announced that it has acquired, through its subsidiary, JM Financial Products Limited, a 9.84-percent equity stake in Fairassets Technologies India Proprietary Limited, a peer-to-peer (P2P) lending company. Continue reading

Written by Comments Off on MICROCAPITAL BRIEF: Fairassets, Owner of Indian On-line Peer-to-Peer Lender Faircent, Sells Equity Stakes to Investors Including JM Financial, Aarin Capital, M&S Partners Posted in Deals, South Asia, East Asia and Pacific

MICROCAPITAL BRIEF: IDB Approves $120m Loan for Chile for Factoring, Cooperatives, Leasing for MSMEs

The Inter-American Development Bank (IDB), a US-based multilateral finance institution that operates in Latin America and the Caribbean, recently approved a loan of USD 120 million to the Chilean government to finance the development of micro-, small, and medium-sized enterprises (MSMEs). The loan is divided into three parts: (1) USD 50 million for factoring to “fund eligible entities that neither belong to nor are associated with banks”; (2) USD 50 million to lend to “eligible Savings and Lending Cooperatives”; and (3) USD 20 million for “eligible leasing companies that neither belong to nor are associated with a bank to help them finance MSMEs…” Factoring is a process whereby a company sells future goods or services at a discount in return for immediate cash. Continue reading

Written by Comments Off on MICROCAPITAL BRIEF: IDB Approves $120m Loan for Chile for Factoring, Cooperatives, Leasing for MSMEs Posted in Latin America

MICROCAPITAL BRIEF: MoneyGram Expands Operations in Equatorial Guinea Through 15 BANGE Branches

MoneyGram International, a US-based money transfer company, recently announced it has expanded its operations in Equatorial Guinea by launching services at 15 locations of Banco Nacional de Guinea Ecuatorial (BANGE), a government-controlled bank. Continue reading

Written by Comments Off on MICROCAPITAL BRIEF: MoneyGram Expands Operations in Equatorial Guinea Through 15 BANGE Branches Posted in Africa