MICROCAPITAL BRIEF: Government of Sri Lanka Proposes Long-Delayed Regulations for Microfinance Institutions (MFIs)

The government of Sri Lanka recently proposed a three-tier regulatory and supervisory framework updating a previously proposed law that, if passed, would be applicable to Sri Lankan microfinance institutions (MFIs) that accept deposits from the public. Continue reading

MICROFINANCE PAPER WRAP-UP: Symbiotics 2013 MIV Survey Report: Market Data and Peer Group Analysis

Published by Symbiotics Research and Advisory; 2013; 31 pages; available at: http://www.microfinancegateway.org/p/site/m//template.rc/1.9.62223

Symbiotics SA has conducted the seventh annual survey of microfinance investment vehicles (MIVs) which draws on survey responses from 84 MIVs representing approximately 93 percent of the global MIV market asset base. This paper presents an analysis of the financial and social performance of the microfinance investment industry based on data from December 2012. Continue reading

MICROCAPITAL BRIEF: Asian Development Bank (ADB) Loans $50m to AccessBank of Azerbaijan for Micro-, Small, Medium-sized Enterprises in Rural Areas

AccessBank, an Azerbaijani for-profit microfinance institution (MFI), recently notified MicroCapital that the Asian Development Bank (ADB), a multilateral finance institution based in the Philippines, will provide a USD 50 million five-year senior loan facility to AccessBank. Continue reading

MICROCAPITAL BRIEF: Government of Cameroon Partners with United Nations Development Program (UNDP), International Fund for Agricultural Development (IFAD), United Nations Capital Development Fund (UNCDF) To Consolidate Microfinance Sector

The government of Cameroon recently partnered with three agencies of the United Nations to consolidate the country’s microfinance sector by increasing governmental regulations and mergers of microfinance institutions (MFIs). Continue reading

MICROCAPITAL BRIEF: European Investment Bank (EIB) Loans $92m to National Microfinance Bank (NMB) of Tanzania for Micro-, Small, Medium-sized Enterprises

The Luxembourg-based European Investment Bank (EIB), the long-term lending bank of the European Union (EU), recently loaned EUR 70 million (USD 92.4 million) to the National Microfinance Bank (NMB), a Tanzanian microfinance institution (MFI) that is 30-percent government-owned to support micro-, small and medium-sized enterprises (MSMEs) in Tanzania. The transaction is a long-term loan to NMB that will enable NMB to provide medium-term loans to MSMEs. Continue reading

MICROCAPITAL BRIEF: African Development Bank (AfDB) Loans $17m to Société Nigérienne de Banque (Sonibank) of Niger to Support Private Sector

African Development Bank (AfDB), a multilateral institution that provides loans and grants to governments and private companies in Africa, recently approved a credit line in the amount of EUR 13 million (USD 17 million) to Société Nigérienne de Banque (Sonibank), a commercial bank in Niger. Continue reading

MICROCAPITAL BRIEF: European Investment Bank (EIB) to Loan $12b by 2020 to African, Caribbean, Pacific Countries for Infrastructure, Private Business, Regional Developments

The Luxembourg-based European Investment Bank (EIB), the long-term lending bank of the European Union (EU), recently announced that it will loan a total of EUR 9 billion (USD 12 billion) by 2020 to institutions in Africa, Caribbean and Pacific (ACP) regions through its ACP Investment Facility, a revolving and risk-bearing fund for private sector investment. Continue reading

MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN), Bill and Melinda Gates Foundation Create “Geospatial Mapping of Financial Institutions” Program in Effort to Boost Inclusion

The Central Bank of Nigeria (CBN), Nigeria’s central bank and main financial regulator, reportedly has partnered with the Bill and Melinda Gates Foundation (BMGF), a US-based nonprofit organization, to form a new initiative called “Geospatial Mapping of Financial Institutions” that aims to increase the financial inclusion of low-income Nigerians [1]. Continue reading

MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $6m to Enda Inter-Arabe of Tunisia for Young Entrepreneurs, Micro, Small, Medium-sized Enterprises in Rural Areas

The Sanad Fund for MSME (micro-, small and medium-sized enterprises), an initiative that invests in financial institutions in the Middle East and North Africa, recently loaned the local-currency equivalent of USD 6 million to Enda Inter-Arabe (Enda), a financial services provider and Tunisia-based arm of non-governmental organization Enda Third-World, to support Enda’s expansion into poor rural areas of Tunisia; increase product offerings to young entrepreneurs; provide financial services to micro, small and medium-sized enterprises; and promote the empowerment of women. The loan is Sanad’s first debt investment in the country [1]. Continue reading

MICROCAPITAL BRIEF: Standard Bank, Systemanalyse und Programmentwicklung (SAP) To Launch “AccessBanking” to Reach Unbanked in South Africa

Standard Bank, a South Africa-based financial services company, recently partnered with Systemanalyse und Programmentwicklung (SAP), a Germany-based business software provider, to launch AccessBanking, a new service that enables low-income people in South Africa without access to traditional banking services to set up bank accounts with Standard Bank using their mobile phones [1]. Continue reading

MICROCAPITAL BRIEF: Unit Trust of Tanzania (UTT) to Split into UTT Microfinance, UTT Asset Management and Investor Service (UTT AMIS), UTT Project and Infrastructure Development (UTT PID)

Unit Trust of Tanzania (UTT), a government-owned trust fund established in 2003, reportedly has decided to split into three separate firms: UTT Microfinance, UTT Asset Management and Investor Service (UTT AMIS) and UTT Project and Infrastructure Development (UTT PID) [1]. Continue reading

MICROCAPITAL BRIEF: India’s Bandhan Microfinance Institution to Cut Interest Rates as a Commercial Bank

Bandhan Microfinance, a microfinance institution (MFI) based in Kolkata, India, has applied for a banking license to convert to a commercial bank, which reportedly will reduce costs, reduce interest rates on loans and increase the number of clients [1]. The current interest rate on loans that Bandhan offers is 22 percent; as a commercial bank it can potentially offer rates as low as 12 percent because it can fund loans from deposits, thus reducing its dependence on borrowing costly funds from other banks [2]. Continue reading

MICROCAPITAL BRIEF: MicroCredit Enterprises Partners with Freedom from Hunger to offer Health-related Services to Clients of Microfinance Institutions (MFIs)

MicroCredit Enterprises (MCE), a US-based NGO microfinance fund manager, and Freedom from Hunger, a US-based NGO that aims to alleviate hunger and poverty, are collaborating on a project that will offer “health-related education, loans, savings, insurance and linkages to local healthcare providers” in hopes that it will alleviate loan defaults caused by poor health and strengthen clients’ abilities to endure income-producing activities [1]. Continue reading