MICROFINANCE EVENT: Consumers International Global Congress; December 6-8, 2023; Nairobi, Kenya

Every four years, this event gathers stakeholders aiming to create a resilient future for the mass market. The agenda covers topics such as: (1) Transforming Consumer Journeys in Mobile Money; (2) The Influence of ChatGPT on Consumer Experiences; (3) Channels of

MICROCAPITAL BRIEF: Lipa Later, Mastercard Partner on Buy Now / Pay Later Services in Africa

Lipa Later, a Kenyan financial technology (fintech) firm active in four countries, has partnered with US-based Mastercard to expand its merchant network and technological infrastructure in support of the “buy now-pay later” options that it offers online and in-store consumers. According to

SPECIAL REPORT: The Impact of Digital Financial Inclusion on Global Development

In September 2015, every UN member country endorsed the 2030 Agenda for Sustainable Development, which comprises 17 target areas known as the Sustainable Development Goals (SDGs).

After falling from 10.1 percent in 2015 to 8.6 percent in 2018, the global poverty rate increased to 9.2 percent in 2020 because of the COVID-19 pandemic, reversing a long trend of poverty reduction. Other headwinds such as armed conflicts, rising inflation, food in­security, and political and social unrest also are affecting global devel­opment, and the UN estimates that these crises combined to cause an additional 95 million people to live in extreme poverty in 2022.

On the other hand, the digital revolution has made many people’s lives easier with access to mobile phones, the internet and other tools. Digital financial inclusion (DFI) and its innovative business models have had a particularly disruptive effect, bolstering financial inclusion worldwide.

Impact on Sustainable Development Goals
DFI is enabling all types of pathways to advance the achievement of the SDGs, strengthening the link between financial inclusion and de­vel­opment. In 2016, CGAP and

MICROCAPITAL BRIEF: 24 Education Technology Startups in Kenya, Nigeria Joining Mastercard Foundation EdTech Fellowship

The Canada-based Mastercard Foundation recently announced that 24 educational technology (edtech) startups in Kenya and Nigeria have joined the Mastercard Foundation EdTech Fellowship program, which promotes “technology in learning and teaching to benefit learners, education and edtech innovators across the continent” of Africa. The Kenyan inductees are listed at:

MICROCAPITAL BRIEF: Mogo Kenya Borrowing $7m from Verdant Capital Hybrid Fund to Boost Vehicle Ownership

Mauritius-based Verdant Capital recently announced that it will lend USD 7 million from its Verdant Capital Hybrid Fund to Mogo Kenya, a subsidiary of Latvia-based Eleving Group, to fund two-, three- and four-wheeled vehicles – some powered by electricity – for self-employed taxi and delivery drivers. The loan is structured in two tranches,

MICROCAPITAL BRIEF: I&M Bank Enables Spenn Mobile App Users to Send Money to Financial Institutions Across Rwanda 

Norway’s Spenn Technology recently expanded its partnership with the Rwandan unit of Kenya’s Investments & Mortgages (I&M) Bank to allow users of the Spenn mobile application to send money to any financial services provider in Rwanda, including banks and competing mobile money services. The app’s other features include

MICROCAPITAL BRIEF: Sun King Raises $130m for Pay-as-you-go Solar in Kenya, Citi is Sole Arranger

With the goal of expanding access to off-grid solar energy in Kenya, the US-based solar products firm Sun King recently won a loan securitization denominated in Kenyan shillings equivalent to USD 130 million. Among the private participants are

MICROCAPITAL BRIEF: KEPFIC Member Pension Funds Invest $61m in Acorn Holdings, Kenya Mortgage Refinance Company (KMRC) to Boost Affordable Housing

Kenya’s Acorn Holdings Africa and the Kenya Mortgage Refinance Company (KMRC) recently won investments from members of the Kenya Pension Funds Investment Consortium (KEPFIC), a group of funds that collaborate to invest in alternative assets. In particular, KEPFIC pension funds placed

MICROCAPITAL BRIEF: Oxfam, Goodwell Launch Pepea, $23m Fund to Invest in SMEs in East Africa

Two Netherlands-based organizations, the NGO Oxfam Novib and for-profit Goodwell Investments recently partnered to create Pepea Fund, with EUR 20 million (USD 22.8 million) from Oxfam Novib to support small and medium-sized enterprises (SMEs) in Kenya, Ethiopia and Uganda. Goodwell Investments will

MICROCAPITAL BRIEF: Bidhaa Sasa Borrows $500k from Spark+ Africa Fund for Distribution of Efficient Cookstoves in Kenya, Uganda

Bidhaa Sasa, a Kenya-based last-mile distributor of lower-emission cooking and lighting products, recently borrowed USD 500,000 from Spark+ Africa Fund, an investor in “modern energy solutions.” Bidhaa Sasa plans to use the proceeds to

MICROCAPITAL BRIEF: Kwara of Kenya Raises $3m in Equity to Boost Technology for SACCOs, Acquires KUSCCO Software Subsidiary

Kwara, a woman-led financial technology (fintech) company serving credit unions in Kenya, the Philippines and South Africa, recently raised USD 3 million from its previous investors DOB Equity, Globivest and Willard Ahdritz plus a group of

MICROCAPITAL BRIEF: Oikocredit Loans MyCredit $2.6m for SME Financing in Kenya

Oikocredit, a Netherlands-based cooperative, recently lent MyCredit, a Kenya-based non-bank financial services company, USD 2.6 million for lending to small and medium-sized enterprises (SMEs). MyCredit CEO George Mbira commented, “The secured funding will support MyCredit’s strategic

MICROCAPITAL BRIEF: To Fund Biogas Digesters, Cookstoves in Kenya, Sumac Microfinance Bank Borrows $2m from Spark+ Africa

Kenya’s Sumac Microfinance Bank recently secured a three-year loan of USD 2 million from Spark+ Africa Fund, an investor in “modern energy solutions.” Sumac is to use the funds to expand its Kawi product, which funds solar panels, fuel-efficient stoves and biogas digesters. Sumac’s partners include Kenya’s Burn Manufacturing and Mexico-based

MICROFINANCE PAPER WRAP-UP: “Banking in Layers: Five Cases to Illustrate How the Market Structure for Financial Services is Evolving;” by Aiaze Mitha, Faith Biegon, Peter Zetterli; Published by CGAP

This paper cites several financial service providers (FSPs) in emerging markets in exploring how recent advancements in digital technology have enabled new business models, transforming the market for financial services. The authors argue that these FSPs have deconstructed the financial services market into separate modules, allowing these modules to be reassembled in innovative ways. These modules include: