by Vaughn Rajah -

MICROFINANCE PAPER WRAP-UP: “Predictors of Microfinance Sustainability: Empirical Evidence from Bangladesh,” by Maeenuddin et al

This article examines the financial sustainability of microfinance institutions (MFIs) in Bangladesh. Using data from the MIX Market database, the authors develop a

by Sheen Gupta -

MICROCAPITAL BRIEF: World Bank Providing $52m to Lesotho to Boost Financial Access, Resilience of MSMEs – Especially Women-, Youth-owned Enterprises

The World Bank recently issued a USD 45 million loan to the government of the Kingdom of Lesotho, supported by a USD 7.5 million grant from the World Bank’s Global Risk Financing Facility. The purpose of the project is to: (1) provide “business support services and financial products” to 500 micro-, small and medium-sized enterprises (MSMEs), of which half are to women-owned and a quarter are to be youth-owned; and

by Tejas Gumudavelly -

MICROCAPITAL BRIEF: Off-Grid Market Development Fund Granting Up to $28m to Solar Distribution Firms in Madagascar, Depending on Results Toward Goals

The Off-Grid Market Development Fund (OMDF), an initiative of the Malagasy government, recently signed contracts with 12 solar companies in Madagascar, whereby the firms are receiving a total of USD 2.5 million upfront. The firms can obtain an additional total of USD 25.5 million if they reach their distribution goals, which entail the delivery of “900,000 quality solar lanterns and market-entry solar home systems by June 2024.” 

OMDF has a total volume of

by Sophie Fiala -

MICROCAPITAL BRIEF: Georgia Seeks to Ease MSMEs’ Adjustment to COVID-19 with World Bank Funding for Fintech, Loan Guarantees, Grants

The World Bank recently approved EUR 85 million (USD 103 million) for a project called “Relief and Recovery for Micro-, Small and Medium Enterprises (MSMEs),” which will support businesses in Georgia that have been affected negatively by the COVID-19 pandemic. The project includes funding to expand Georgia’s financial infrastructure, such as to support online banking, know-your-customer (KYC) protocols and

by Tejas Gumudavelly -

MICROCAPITAL BRIEF: Fiji Passes National Payment System Act, Seeking to Boost Fintech

The Reserve Bank of Fiji (RBF) recently announced the passage of a National Payment System Act to “upgrade national payment and settlement systems” with the intent of improving electronic payments, which can be safer and cheaper for both businesses and households. The targeted solutions include

by Tejas Gumudavelly -

MICROCAPITAL BRIEF: Laos Launches $40m MSME Pandemic Relief Project with World Bank Loan Proceeds

The Ministry of Industry and Commerce of Lao People’s Democratic Republic (PDR) recently announced it is borrowing USD 40 million from the World Bank in an effort to help micro-, small and medium-sized enterprises (MSMEs) recover from the COVID-19 pandemic. The terms of the loan

by Bradley Shulman -

MICROFINANCE PAPER WRAP-UP: “ESG and Accountability to Communities;” Published by Publish What You Fund

This report examines 20 development finance institutions (DFIs) to learn how these organizations: (1) are transparent in terms of their policies on environmental, social and governance (ESG) issues; (2) disclose ESG risks and plans to manage those risks; and (3) implement independent accountability mechanisms (IAMs) to ensure policies are being followed. Among the benefits of ESG transparency

by Michelle Fleming -

MICROCAPITAL BRIEF: First Bond Issue Ever on Cambodian Securities Exchange Is by Microfinance Institution Hattha Kaksekar Limited (HKL) to Benefit Farmers, Other Rural Entrepreneurs

With encouragement from the Cambodian government, microfinance institution Hattha Kaksekar Limited (HKL) recently issued the first corporate bonds ever on the Cambodian Securities Exchange (CSX). The issue raised the USD equivalent of 30 million

by Tiannah Steele -

MICROFINANCE EVENT: Financial Inclusion Global Initiative (FIGI) Symposium; January 22 – 24, 2019; Cairo, Egypt

Session titles at the 2019 Financial Inclusion Global Initiative (FIGI) Symposium include: Data Privacy in Digital Finance, Policy Considerations Relevant to Digital ID in Finance, and Data Analysis to Understand the Reach of Digital Financial Services. Speakers will also address

by Michelle Fleming -

MICROCAPITAL BRIEF: IFC to Loan $50m to Itaú Argentina for SMEs, “Green” Lending

The International Finance Corporation (IFC), a member of the World Bank Group, recently agreed to provide Itaú Argentina, a subsidiary of Brazil-based Itaú Unibanco, with USD 15 million to expand funding for small and medium-sized enterprises (SMEs) as well as USD 35 million for “sustainable” energy projects.

by Kevin van den Brink -

MICROCAPITAL BRIEF: World Bank, Rabobank Foundation Seek to Replicate Consolidation of Agricultural Cooperatives in Albania

The World Bank, member of US-based multilateral World Bank Group, and the Rabobank Foundation, the “social fund” of the Dutch bank Rabobank, recently teamed up to consolidate agricultural cooperative financial institutions (CFIs), organizations set up by farmers to gain access to financing.