The International Finance Corporation (IFC), a member of the World Bank Group, recently announced a partnership with Bank of Africa (BOA) Kenya to expand its lending to women-led and climate-focused small and medium-sized enterprises (SMEs). IFC will reimburse BOA Kenya for
MICROCAPITAL BRIEF: Alliance Finance Raises $15m in Debt from FMO, Enabling Microfinance Fund (EMF) to Support Lending to MSMEs in Sri Lanka
Alliance Finance, which is based in Sri Lanka, recently received a loan package of USD 15 million from Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership, and the Liechtenstein-domiciled Enabling Microfinance Fund (EMF). FMO financed two thirds of the package, and EMF provided the remaining USD 5 million. The funding is earmarked for
MICROCAPITAL BRIEF: AEB Onlending $5.7m from EBRD, EU to SMEs in Armenia, Mostly for “Green” Investments
The European Bank for Reconstruction and Development (EBRD), a UK-based development finance institution, recently agreed to lend EUR 5 million (USD 5.7 million) to Armeconombank (AEB), an Armenian bank. The purpose is to finance small and medium-sized enterprises (SMEs) in acquiring technology that will upgrade employees’ working conditions, boost competitiveness and increase exports – including by reaching EU standards. AEB has agreed to direct at least 70 percent of the loan proceeds to
MICROCAPITAL BRIEF: Tugende Raises $17m in Debt from Symbiotics, Goldfinch, Nordic Microfinance Initiative, Lendahand to Expand Vehicle, Equipment Financing for MSMEs in Kenya, Uganda
Tugende, a financial technology (fintech) firm specializing in vehicle finance in Uganda and Kenya, recently raised USD 17 million in debt funding. The firm plans to use USD 12 million of the fresh cash to support growth in
MICROCAPITAL BRIEF: Annapurna Raises $35m from Accion, Encourage Capital, Oikocredit to Support Green Microfinance, Digitalisation
Annapurna Finance, a microfinance institution (MFI) based in the Indian state of Odisha, recently raised INR 193 billion (USD 35 million) from US-based NGO Accion, US-based impact investor Encourage Capital and Dutch cooperative investor Oikocredit. The funding is to be used to boost the digitalisation of Annapurna’s operations and for developing
MEDIA OF THE MONTH: Vineet Rai of Aavishkaar on Impact Investing in India
In this 23-minute video, Fintech.tv’s Kavita Gupta interviews Vineet Rai, the Chair of Aavishkaar Group, an impact investor with offices in India and Kenya that manages assets valued at USD 1 billion.
This post is part of an occasional series from MicroCapital pointing you to great media on microfinance and other forms of impact investing. Enjoy!
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
SPECIAL REPORT: Measuring Impact with Agents for Impact’s AFISAR Tool
Agents for Impact: Driving Positive Impact… Together!
The 17 Sustainable Development Goals (SDGs) outlined by the UN in 2015 provide a blueprint for a just and sustainable world. While actors across a range of professional arenas are rushing to catch up with the SDGs, the term “impact” is being thrown around loosely to give the impression that the desired goals have been reached. It is tempting to assume certain businesses have a positive impact on the SDGs, simply based on intuition. However, some might negatively impact the SDGs or elicit both positive and negative outcomes in the long run. Without proper tools for impact measurement and assessment, we can only get so far!
Agents for Impact (AFI) understands how essential it is to improve the practice of impact measurement through stable and coherent frameworks. To deliver on this promise, we have designed a specialized investment approach to support microfinance institutions (MFIs) that exhibit strong commitment to and proven track records of progress toward the SDGs. To evaluate an MFI’s performance, AFI peels back the surface to deploy a strong assortment of cohesive and rigorous assessment tools, including financial analysis and addressing social performance indicators; sustainability factors; and
MICROFINANCE PAPER WRAP-UP: “Policy Framework on the Regulation, Licensing and Supervision of Digital Banks,” Published by Alliance for Financial Inclusion
This report provides a framework for regulators and policymakers seeking to improve the way they govern digital banks, with a focus on increasing financial inclusion. It draws on “in-depth secondary research and extensive consultation with [Alliance for Financial Inclusion] member countries and regulators in other jurisdictions, and other relevant analysis of
MICROFINANCE PAPER WRAP-UP: “Impact Evaluation of Credit Guarantee Schemes in Agriculture,” Published by FAO
This paper reviews the impacts of multiple agricultural partial credit guarantee schemes (PCGSs), through which governments agree to absorb a portion of lenders’ losses on particular loans or loan portfolios. Governments often use PCGSs to de-risk financial institutions’ lending to small and medium-sized enterprises (SMEs), especially as a countercyclical tool in times of
MICROCAPITAL BRIEF: EIB Lends Ecobank Group $113m for SMEs in Africa, with Emphases on Women, Adjusting to COVID-19
The Togo-based Ecobank Group recently received a 9-year credit facility of EUR 100 million (USD 113 million) from the EU’s European Investment Bank (EIB). The purpose is to help develop the small and medium-sized enterprise (SME) sector, with a particular emphasis on the
MICROFINANCE EVENT: Impact Investor Global Summit; May 18-19, 2022; London, UK
This conference aims to “mobilise private market institutions to engage with the growing momentum in impact investing.” The agenda includes sessions on analysing progress toward the UN Sustainable Development Goals (SDGs) and
MICROFINANCE PAPER WRAP-UP: “A Digital Bookkeeping App to Improve Access to Finance,” Published by UN Capital Development Fund
Ghana-based financial technology firm Ozé and Ecobank, a Togo-based commercial bank that operates in 35 countries, partnered beginning in 2020 to expand usage of the Ozé Business App among young entrepreneurs in rural Ghana. The Ozé mobile phone app is designed to help users track
MICROCAPITAL BRIEF: Bank of Georgia Borrowing $200m from ADB, JICA for MSMEs, Especially Those Owned by Women
The Bank of Georgia (BOG), a UK-based institution active in Georgia, recently obtained a loan of GEL 617 million (USD 200 million) to on-lend micro-, small, and medium-sized enterprises (MSMEs), especially those owned by women. Half of the loan is from the Asian Development Bank (ADB), a development finance institution active in Asia and the Pacific, and the other half is funded by
MICROCAPITAL BRIEF: Fintech Mambu Secures $265m in Equity Funding Round Led by EQT to Expand Core Banking Platform for Microfinance, Other Institutions
Mambu, a German software-as-a-service (SaaS) banking platform founded in 2011, recently raised EUR 235 million (USD 265 million) in Series E funding, valuing the firm at EUR 4.9 billion (USD 5.5 billion). EQT Growth, a Sweden-based private equity investor, led the funding round. EQT Growth is a first-time investor in Mambu and is joined by
MICROFINANCE EVENT: FinovateEurope; March 22-23, 2022; London, UK; Virtual Option Available
FinovateEurope is one of a series of conferences focusing on financial technology (fintech). The agenda for March 22 includes approximately 50 demonstrations of new products, and attendees may hear from 70 presenters on March 23. The speaker list includes Inma Martinez,
MICROFINANCE EVENT: Association of Ethiopian Microfinance Institutions (AEMFI) Biennial Microfinance Conference; January 25-28, 2022; Bahirdar, Ethiopia
The 11th edition of this conference is themed “Promoting Digital Finance and COVID-resilient Financial Services towards the Achievement of Financial Inclusion.” Researchers and practitioners will present their papers and experiences on topics such as client protection; debt moratoria; partnering with banks and financial technology (fintech) firms; governance; regulation; and funding renewable energy, clean water and sanitation. Sessions will also cover
SPECIAL REPORT: Agents for Impact: Driving Positive Impact… Together!
Founded in 2018, we are a Germany-based impact investing company. Agents for Impact (AFI) offers premium impact investment solutions, sustainability consulting and impact measurement services tailor-made for clients in the sustainable finance industry.
We provide our partners with a combination of expertise and experience across the following three pillars: RISK – RATING – RESEARCH.
We have Agents spread across Africa, India, Southeast Asia, Central Asia and Europe, each with in-depth technical expertise and located in close geographical proximity to our key partners and target countries to ensure optimal support.
We pride ourselves on being the partner of choice for impact investors and financial services providers (FSPs) seeking innovation and cooperation. Together with these partners, we pursue positive impact, contributing
MICROCAPITAL BRIEF: Agents for Impact Loans $3m from Invest in Visions to Imon International for Microfinance in Tajikistan
Two German impact investment firms, Agents for Impact (AFI) and Invest in Visions (IIV) recently collaborated to disburse USD 3 million in loan funds to Imon International, a microfinance institution (MFI) in Tajikistan. Imon offers individuals as well as small and medium-sized enterprises loans, savings, internet banking and