MICROCAPITAL STORY: Engineers for Social Impact (E4SI) Launches New Fellowship Program in India for Engineers in Microfinance, Social Enterprises

Engineers for Social Impact (E4SI), a new fellowship program in India, has begun its recruitment process to match the top five undergraduate candidates from Indian engineering schools with five partner social enterprises that are focusing on development by means of sustainable for-profit entrepreneurship. Continue reading

MICROCAPITAL STORY: Compartamos Windfall One Year Later

Nearly one year since the well-publicized and successful IPO of Banco Compartamos, its stock has not maintained its initial and sizable gains. Compartamos is Mexico’s largest microfinance bank, the first “home-grown” microfinance institution to complete an IPO, and the continued subject of debate within the microfinance industry. Continue reading

MICROFINANCE EVENT: Financiera Independencia of Mexico to Hold Fourth Quarter Conference Call



Mexican Microfinance Institution (MFI), Financiera Independencia, will hold its fiscal 2007 fourth quarter conference call and release its earnings for the fourth quarter ending December 31, 2007 on February 21, 2008 at 11 AM Eastern Time. Continue reading

MICROCAPITAL STORY: Microfinance Financier, Oikocredit, of the Netherlands Announces Preliminary Results for 2007

Oikocredit of the Netherlands, recently announced preliminary results for 2007. The report reveals a 44 percent growth in dispersals since 2006. The microfinance financier disbursed EUR 135 million, the equivalent of over USD 195 million, in the form of loans, credit lines, equity investments, and guarantees to 266 project partners worldwide. The total amount outstanding with these project partners grew by 33 percent to EUR 277 million, the equivalent of over USD 400 million. This does not include the recent investment of USD 12.2 million in 11 different Latin America microfinance institutions (MFIs) earlier this month as reported by microcapital.org. Oikocredit also announced that it intends to continue paying a 2 percent dividend to its members. Continue reading

MICROFINANCE EVENT: ACCION and Harvard Business School Offer Week-Long Program on Strategic Leadership for Microfinance



This seven-day program, hosted by Harvard Business School (HBS) and ACCION, offers finance leaders from around the world the opportunity to connect with peers while engaging with top HBS faculty. The 2008 course offers for the first time an expanded curriculum for all financial institutions – from microfinance specialists to conventional commercial banks – engaged in expanding finance to underserved clients around the world. In 2006 and 2007, microfinance practitioners from 33 countries – including 36 CEOs from leading microfinance institutions (MFIs) – attended the program. Participants in the 2008 program can expect to leave the course with an enhanced perspective on their leadership roles as well as insights on commercial finance that will shape their strategies in a rapidly changing industry. Continue reading

MICROCAPITAL STORY: Multilateral Investment Fund (MIF) of Inter-American Development Bank (IDB) Grants $3.1m for Micro and Small Business Development in Peru, Ecuador

The Multilateral Investment Fund (MIF) of the Inter-American Development Bank, a multilateral financial institution, recently approved grants for two technical cooperation projects in Peru and Ecuador, valued at USD 1.6 million and USD 1.5 million, respectively. In addition, each country will contribute approximately USD 1 million as counterpart financing. Both projects will aim to boost income and employment levels among low-income entrepreneurs, while also incorporating this market segment into private-sector business development. Continue reading

MICROCAPITAL STORY: Harvard Business School Publishes “Microfinance International Corporation: No, Not Another Microfinance Case”

Harvard Business School recently published a business case study titled “Microfinance International Corporation: No, Not Another Microfinance Case”, written by International Entrepreneurship Professor Daniel Isenberg. Atsumasa Tochisako, President and CEO of Microfinance International Corporation (MIC), said, “I am hopeful that our attempts and experiences will inspire students to come up with innovative solutions to social problems that are believed to be unsolved.” Addressing an issue that has global implications – the financial integration of the poor – MIC has attempted unique approaches in many aspects of its business – from products and services to marketing, funding and personnel. Continue reading

PAPER WRAP-UP: Microinsurance in Focus Note Nr. 2: “Product Design and Insurance Risk Management”, by the Consultative Group to Assist the Poor (CGAP)

Published by CGAP, based on key chapters of Protecting the Poor: A Microinsurance Compendium, 4 pages, October 2007, available for viewing here.

The second microfinance focus note of the series, entitled “Product Design and Insurance Risk Management”, focuses on ensuring the viability and sustainability of the insurance product. In order to design a product that strikes a balance between broad inclusion, value, affordability, and sustainability, microinsurance providers must start with four basic steps: define the target group, assess insurable risks, determine key product features, and establish payment capabilities among the target population. Continue reading

MICROFINANCE EVENT: Microfinance Centre (MFC) to Host Eleventh Annual Conference in Mongolia in May 2008



The Microfinance Centre (MFC) will host its 11th annual conference in Mongolia in May 2008, offering the opportunity to network with microfinance practitioners, investors, policy makers and other microfinance stakeholders. Details on the agenda and registration for the event, themed “Clients and Institutions, Growing Together,” will soon be available on MFC’s conference website which listed information on the 2007 conference as of the date of this post.

MICROCAPITAL STORY: Public Shows Strong Interest in Participating in Microfinance through Kiva.org

Starting in September, demand by would-be lenders repeatedly outstripped supply of microloan requests at Kiva.org’s website. Kiva.org is a non-profit organization whose website allows individuals to connect and provide microloans to micro entrepreneurs in the developing world. Particularly with the holiday season, there have been periods when every loan request on Kiva has been filled, leaving potential investors visiting the site dumbstruck. Continue reading