by the MicroCapital Team -

SPECIAL REPORT: Partner with Agents for Impact, and We’ll Drive Impact Together!

This article is sponsored by Agents for Impact (AFI). We invite you to learn more about the firm via LinkedIn.

Andrij Fetsun, Founder & CEO at AFI:
AFI celebrated five years in bus­iness in October this year, and my team has attained several impact­ful goals during this challenging time. This would not have been possible without the im­mense support of our clients: the Ger­man impact-driven microfinance fund Invest in Visions, which has accumu­lated a volume of around EUR 1 billion with a major focus on micro­finance; HANSA­INVEST, which is based in Hamburg; and the crowdfunding platform Lendahand. Among the services we provide these clients is to perform plausibility checks of their funds’ ESG reports.

As the founder of AFI, I would like to highlight the culture we have built with our dedicated team that has come to­gether during these five years from dif­ferent parts of the world. I believe that corporate culture is crucial for every com­pany, especially for startups. Initially, we had trouble attracting Agents since we were not a well-established name in the industry or able to pay high salaries from the outset. Therefore, I focused on what truly makes for a great workplace

by James Stevenson -

MICROFINANCE PAPER WRAP-UP: “2023 Microfinance Index Report,” Published by 60 Decibels

This report provides insight into the experience of financial services provider (FSP) clients, including quantitative comparisons of FSPs across regions and snapshots of FSP performance in Cambodia, Ecuador, India, Indonesia and Uganda.

The authors constructed the dataset from

by Vaughn Rajah -

MICROFINANCE PAPER WRAP-UP: “Impact of Microcredit on Household Consumption and Assets in Nepal;” by Shalik Ram Pokhrel

Dr Pokhrel hypothesized that microcredit is a sustainable tool for poverty reduction, based on the idea that access to microcredit can improve household income and employment opportunities, thus leading to increases in household consumption and asset ownership. The study employed data from

by Vaughn Rajah -

MICROFINANCE PAPER WRAP-UP: “Impacts of Microcredit Access on Climate Change Adaptation Strategies Adoption and Rice Yield in Kwara State, Nigeria,” by Adejoke Yewande Bakare et al

Because 70 percent of Nigeria’s population is active in agriculture as a primary occupation, climate change has a direct impact on the livelihoods of most people in the country. Access to microcredit can

by the MicroCapital Team -

MICROCAPITAL BRIEF: Agents for Impact Disburses $15m in Local Currency from IIV to MBK Ventura of Indonesia for Group Microfinance Loans for Women

Agents for Impact (AFI), a Germany-based impact investing company, recently informed MicroCapital that it has disbursed a local-currency loan equivalent to USD 15 million in favor of Mitra Bisnis Keluarga (MBK) Ventura, a microlender in Indonesia, on behalf Invest in Visions (IIV). Established in 2006, MBK Ventura seeks to raise the living standards of low-income women in rural parts of the island of Java by providing access to group microloans for use as

by Shuyang Sun -

MICROCAPITAL BRIEF: Invest In Visions’ IIV Mikrofinanzfonds Lends $3m to Armeconom Bank to Support Microfinance in Armenia

Germany-based Invest in Visions (IIV) recently announced that it has loaned USD 3 million to Armeconom Bank of Armenia from IIV Mikrofinanzfonds, a microfinance investment vehicle that lends to financial institutions in developing countries. Launched in 1991, Armeconom offers loans, credit lines, deposit services, payment cards, transfers and other services to individuals and businesses. It accepts deposits in four currencies, with rates ranging from 0.2 percent to 10 percent per year. Its lending products include

by Shuyang Sun -

MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $100m to Equity Bank to Support SMEs, Renewable Energy in Kenya

The International Finance Corporation (IFC), a member of the World Bank Group, recently loaned KES 10 billion (USD 100 million) to the Kenyan member of the Equity Bank Group, a provider of microfinance and conventional financial services in six countries, to: (1) increase its lending to small and medium-sized enterprises (MSMEs); (2) enhance its regulatory capital; and (3) finance renewable energy projects. IFC also will provide Equity Bank Kenya with advisory support related to the subordinated loan, the cost of which has not been revealed. The IFC-funded loans will range in size from KES 1 million (USD 10,000) to KES 200 million (USD 2 million) to benefit firms that fit at least one of the following criteria:

by Shuyang Sun -

MICROCAPITAL BRIEF: Green for Growth Fund (GGF) Loans $1.1m to Microcredit Foundation Lider to Reduce Energy Costs, Carbon Emissions in Bosnia and Herzegovina

The Green for Growth Fund (GGF), a Luxembourg-based public-private partnership, recently loaned EUR 1 million (USD 1.14 million) to Lider, a microcredit foundation based in Sarajevo, to reduce emissions of carbon dioxide in rural regions of Bosnia and Herzegovina. Lider will on-lend the funds to households and small-scale farmers to

by Shuyang Sun -

MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $5m to Al Majmoua for Enterprise, Housing Microfinance in Lebanon

Sanad Fund for MSME, a Luxembourg-based investor in lenders to micro-, small and medium enterprises (MSMEs), recently loaned USD 5 million to Al Majmoua, a provider of financial and business development services to underserved groups in Lebanon. The funds are to be on-lent to low-income individuals for housing improvements and to very small enterprises for business needs.

by Shuyang Sun -

MICROCAPITAL BRIEF: World Bank Lending $700m to Morocco to Support “Digital Transformation,” Including MSME Finance, Mobile Payment Systems, Angel Investing

The World Bank recently approved loan funding of EUR 611 million (USD 700 million) for the nation of Morocco with the objective of promoting a “digital transformation.” The project will be implemented through 2024 by the country’s Ministry of Economy and Finance, focusing on three pillars: (1) “enhancing financial inclusion for individuals, and micro, small and medium enterprises,” including access to insurance, agricultural finance and various Islamic financial services; (2) improving digital infrastructure, including measures intended to reduce the cost of mobile payments; and (3) supporting angel investors. One of the program strategies is to fund lenders to expand micro-enterprise lending.

by Nicholas Galimberti -

MICROCAPITAL BRIEF: Bank of Industry (BOI) of Nigeria to Debut Government’s TraderMoni Microenterprise Lending Program

The government of Nigeria recently announced plans for a national rollout of TraderMoni, a lending service for microenterprises whose inventories do not exceed NGN 10,000 (USD 30). During the pilot phase of the project, 368 microentrepreneurs in Nigeria’s Edo State each borrowed

by Nicholas Galimberti -

MICROCAPITAL BRIEF: Kazakhstan’s Government Expanding Bastau Business Project, Supporting Agricultural Cooperatives, Entrepreneurship Training, Rural Microfinance

Kazakhstan’s Vice Minister of Labour and Social Protection, Nurzhan Altayev, recently announced plans to expand the Bastau Business Project, a government-sponsored initiative that involves “training rural people with entrepreneurial skills, including the principles of forming agricultural cooperatives, and supporting their business projects” with credit. The program, launched in 2017,

by Jared Junkin -

MICROFINANCE EVENT: Asian Venture Philanthropy Network (AVPN) Conference; June 4 – 7, 2018; Singapore

Summary of Event: This sixth iteration of this event centers on maximizing social impact in Asia through investing and philanthropy. The topics are to include “strategic philanthropy,” investing in education and healthcare, investing with a gender lens, government policy implications, and

by Kevin van den Brink -

MICROCAPITAL BRIEF: The MasterCard Foundation, Root Capital to Invest $5.2m in Early-Stage Agricultural Businesses in West Africa

Root Capital, a US-based nonprofit investment fund, and The MasterCard Foundation, a Canadian organization founded by the US-based payments firm MasterCard Worldwide, recently announced a partnership aimed at raising incomes for 300,000 smallholder farmers in West Africa.

by Kevin van den Brink -

MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loaning up to $2m to Arvand of Tajikistan for On-lending to Micro- and Small Enterprises (MSEs)

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral institution, recently agreed to provide loan funds of up to TJS 15.7 million (USD 2 million) to Arvand, a Tajikistan-based microfinance institution (MFI), for on-lending to local micro- and small enterprises (MSEs).

by Kevin van den Brink -

MICROFINANCE PAPER ROUND-UP: Managing Risks for Smallholders in Africa, Financing Shortfall for Women-owned Enterprises in Indonesia, Perspectives of Banks in Emerging Countries on Financial Inclusion

“Finance for Smallholders: Opportunities for Risk Management by Linking Financial Institutions and Producer Organisations;” by J de la Rive Box et al; published by the Food & Business Knowledge Platform, Agri Pro Focus and the Platform for Inclusive Finance NPM; May 2016;  22 pages; available at: http://www.inclusivefinanceplatform.nl/documents/npm%20summary%20report%20finance%20for%20smallholders.pdf

by Kevin van den Brink -

MICROCAPITAL BRIEF: VisionFund International Buying Majority Equity Stake in Opportunity’s Microfinance Institution in Democratic Republic of Congo

Pending regulatory approval, VisionFund International, a US-based affiliate of the Christian humanitarian organization World Vision International, recently agreed to purchase a majority stake in Opportunity International’s (OI’s) microfinance institution (MFI) in the Democratic Republic of Congo (DRC).

by Kevin van den Brink -

MICROCAPITAL BRIEF: Small and Medium Enterprises Development Agency of Sierra Leone to Lend to SMEs at Single-digit Interest Rates without Collateral

The Small and Medium Enterprises Development Agency of Sierra Leone (SMESL), which was established by that nation’s parliament in 2015 [2], recently announced it will provide loans at interest rates below 10 percent per year without a collateral requirement, in an effort to strengthen small and medium-sized enterprises in the country.