Publish What You Fund, a UK-based NGO aimed at increasing the transparency of international development efforts, recently launched its DFI Transparency Tool. The tool is meant to provide development finance institutions (DFIs) with guidance on
MICROCAPITAL BRIEF: DAI Buys Microfinance Investor MicroVest
Two US-based firms involved in international development announced yesterday that they have agreed to become one organization. Employee-owned DAI is paying an undisclosed sum to acquire MicroVest Capital Management, which was founded in 2003 and specializes in channeling loans to funders of micro-, small and medium-sized enterprises in low- and middle-income countries. MicroVest manages a portfolio valued at
MICROCAPITAL BRIEF: Northern Arc Capital to Provide Research, Modeling, Reporting Services to Nasira, FMO Program that Guarantees MSME Lending to Youth, Women, Migrants
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership, recently finalized an agreement with Northern Arc Capital, an Indian financial firm, to support Nasira, a risk-sharing program through which FMO encourages retail financial institutions to lend to entrepreneurs in Africa and parts of Asia. In particular, Nasira guarantees lending to micro-, small and medium-sized enterprises whose owners fall into one or more of the following
MICROFINANCE PAPER WRAP-UP: “COVID-19 and Fintechs in Bangladesh – Impact and Resilience;” by Samveet Sahoo, Anik Chowdhury; Published by MicroSave
Covering the period from January 2021 to June 2021, this paper is the second part of a study analyzing the impact of the COVID-19 pandemic – including associated regulatory changes – on financial technology firms (fintechs) in Bangladesh. The first phase of the study found an increase in
MICROFINANCE PAPER WRAP-UP: “Innovating Digital Financial Services for Posts,” Published by Universal Postal Union
Of the 5.4 billion adults worldwide, 1.5 billion access financial services through post offices. Postal services have large networks of branch locations that give them the potential to reach even more underserved populations. The extent of these branch networks is so wide because
MICROCAPITAL BRIEF: Co-operative Bank of Kenya, European Investment Bank Announce $56m Investment for SMEs Impacted by COVID-19 Pandemic
The EU’s European Investment Bank (EIB) and the Co-operative Bank of Kenya, a publicly traded commercial and investment bank, recently partnered to channel EUR 50 million (USD 56 million) to Kenyan “companies active in sectors most challenged by the COVID-19 pandemic.” In particular, the line of credit from EIB will enable firms with up to 250 employees to access
MICROFINANCE EVENT: Global Islamic Microfinance Forum; December 12-14, 2021; Dubai, UAE
The 10th annual Global Islamic Microfinance Forum is a one-day event focusing on increasing awareness of Islamic microfinance and providing a “platform for dialogue between microfinance networks.” Islamic finance is that which complies with Shariah law, such as by using
SPECIAL REPORT: “Capital in the Age of COVID” at European Microfinance Week
At this presentation on the effects of the COVID-19 pandemic on financial inclusion, which was subtitled “Navigating the Uncharted Sea of Insolvency,” Lucia Spaggiari of MFR (formerly known as Microfinanza Rating) predicted that the solvency challenges brought on – or simply exacerbated – by the pandemic may haunt institutions for the next 10 years. Although she described the solvency challenges of 2020 as “not drastic,” 22 percent of financial services providers (FSPs) in her dataset still significant solvency risk. Ms Spaggiari believes this may increase to as high as 34 percent over the next two years.
As for the potential effects on clients, there are clusters of greater risk among: FSPs in sub-Saharan Africa, where 17 percent of institutions are in danger; smaller FSPs, those with assets under USD 10 million; FSPs with
MICROCAPITAL BRIEF: Bridge Taxi Finance of South Africa Borrows $20m to Boost Leasing Services
Bridge Taxi Finance, which is based in South Africa, recently borrowed ZAR 300 million (USD 20 million) from a group of unidentified “international impact investors” to expand its leasing of minibus taxis with vehicles that are safer and less polluting. In addition to leasing vehicles, the firm provides
MICROFINANCE PAPER WRAP-UP: “The Power of Jan Dhan: Making Finance Work for Women in India,” Published by Women’s World Banking
This paper concerns a pilot savings program for women that was designed as an add-on to the Indian government’s Pradhan Mantri Jan Dhan Yojana (Jan Dhan) scheme, which allows any previously unbanked person to open a savings account at any bank in the country. Jan Dhan accounts have no minimum deposits or balances to maintain, and the customer earns interest on his or her savings. Jan Dhan was launched in 2014, and it has been credited in the rise in percentage of women with access to financial services from 26 percent in 2011 to 77 percent in 2017. One of the successes of Jan Dhan is its reach to illiterate customers due its minimal paperwork requirements.
The pilot program was to offer “Jan Dhan Plus” accounts in an effort to encourage more women to save. The new accounts offer users a credit facility of INR 10,000 (USD 134) if they
SPECIAL REPORT: Aligning Incentives, Setting Realistic Expectations for FSPs’ Outcomes Measurement at the e-MFP Investors Action Group
During European Microfinance Week last week, Célia Fernandez of the French NGO Comité d’Echange, de Réflexion et sur les Systèmes d’Epargne-Crédit (CERISE) described LabODD, a project to help mission-driven organizations measure their progress toward the UN Sustainable Development Goals (SDGs). LabODD is a four-year project funded by the French government’s Agence Francaise de Developpement. Among its outputs is a brief due out in December 2021 that will cover outcomes management for financial services providers (FSPs). Cécile Lapenu, also of CERISE, described several trends that will be presented in the brief.
The demand of impact investors for accountability from FSPs is growing. However, the focus now is more on measuring outcomes – which can be associated plausibly with the work of FSPs – rather than impacts – which must be shown to result from
MICROCAPITAL BRIEF: ACBA, Symbiotics Partnering on $6.7m Bond Issue for MSMEs, Green Lending in Armenia
The Agricultural Cooperative Bank of Armenia (ACBA), a commercial and investment bank, and Symbiotics, a Switzerland-based impact investing firm, recently partnered to raise USD 6.75 million for onlending in Armenia. Symbiotics will list a sustainability bond on the
SPECIAL REPORT: Networks in Nigeria, Latin America & Caribbean Boost Trajectory of Women Staff, Clients of Microfinance Institutions (MFIs)
At a session titled “Professional Women’s Networks and Women’s Leadership in Financial Inclusion,” Mariana Martinez of FinEquity, a platform hosted by CGAP that promotes women’s financial inclusion, described the platform’s new Spanish-language arm, FinEquityALC. FinEquityALC focuses on Latin America and the Caribbean, serving as a pilot project that could lead to FinEquity establishing other regional projects. The goals of FinEquityALC are to improve public policy that impacts women’s financial inclusion as well as financial products and financial education that are targeted at women. Its 1,100 users span 250 institutions.
Barbara Magnoni of Andares and EA Consultants described how Andares connects
MICROCAPITAL BRIEF: Oikocredit Promotes Mirjam ‘t Lam to Managing Director
The Supervisory Board of Oikocredit recently announced that Mirjam ‘t Lam has accepted the role of Managing Director at the Dutch cooperative. Ms ‘t Lam has acted in the role on an interim basis since August 2021, after having been named
SPECIAL REPORT: Remittance Providers Nudging Users Online, Cutting Costs, Speeding Up Transactions
Attendees at today’s program on remittances learned about innovations in the field from representatives of Caixa Economica Verde, Mukuru and Swift as well as the FairRemit service, whose collaborators include Aktif Bank’s UPT money transfer service and the World Savings and Retail Banking Institute.
Swift has a new product – Swift Go – for low-value transactions, whose features include upfront visibility on cost. Among the selling points of FairRemit is that its transfers are
SPECIAL REPORT: Fonkoze of Haiti Wins €100k “Inclusive Finance and Healthcare” European Microfinance Award
From the European Microfinance Platform (e-MFP): Fonkoze has won the €100,000 prize awarded by the Directorate for Development Cooperation and Humanitarian Affairs of the Luxembourg Ministry of Foreign and European Affairs.
Three financial service providers from the South were in the running
MICROFINANCE EVENT: Invest in Africa Summit; Africa Trade and Investment Convention; July 1-2, 2022; Amsterdam, the Netherlands – NEW DATES
The purposes of the Invest in Africa Summit are promoting “investment and trade opportunities in African countries, connecting foreign companies with competent authorities and businesses from Africa, and enabling small and medium-sized enterprises [SMEs] and startups to find alternative financing solutions….” The summit includes
SPECIAL REPORT: PAYGo Firms Struggle Less with Nonpayment, More with Supply of Solar Products, Equity Funding Since Onset of Pandemic
Mariama Kamara of Smiling Through Light, a women-run provider of solar products in rural Sierra Leone, stayed in business during the COVID-19 pandemic thanks to emergency funding from the Shine Campaign. Demand is high for Smiling Through Light’s products, but the last shipment of solar appliances from the manufacturer took five months to arrive, causing a delay in paying staff. Only since the onset of the pandemic – and at the request of customers