At the SAM (Semaine Africaine de la Microfinance) conference in Addis Ababa, a wide variety of vendors presented their wares. Among these were several core banking system providers. Antonio Separovic of Oradian previously had set the stage for the conversation at the fintech (financial technology) session organized by Dutch development bank FMO. He argued that microfinance institutions (MFIs) shouldn’t start by thinking about whether to buy a new system, but about where the MFI wants to go and how to get there. “Fintech may be able to reduce the friction to do these things,” he said.
Cameron Goldie-Scot of Musoni agreed: “It’s about what are the challenges in your organization? Is it too expensive to handle cash in rural areas? Do you have trouble getting
The Impact Investing Hub, a student-led project connecting investors to potential impact investments, recently created a Current Deals Library to provide greater access to information on opportunities that are meant to pay off financially as well as
Credit Suisse, a Switzerland-based financial services company with operations in 50 countries, recently announced
At the SAM (Semaine Africaine de la Microfinance) plenary on “Public Solutions to Promote Entrepreneurship in Africa,” Kennedy Komba of the Alliance for Financial Inclusion (AFI) explained that his institution’s SME (Small and Medium-sized Enterprise) Working Group comprises 53 regulatory and policy-making bodies. To facilitate the growth of entrepreneurship, these agencies have created collateral registries, adjusted lender liquidity ratios, updated know-your-customer frameworks and established rules for digital financial services. Trainers in Zambia used a financial education game to reach 5,000 people, of whom 80 percent were able to improve their businesses as a result. In Ghana, the Ministry of Agriculture and the Bank of Ghana collaborated to boost local value chains in an effort to reduce costly
At the gala dinner at the SAM (Semaine Africaine de la Microfinance) conference, Olivier Massart, the General Manager of ADA, argued that the attendees of the event have incurred a “moral obligation” to increase financial inclusion. The 650+ attendees spent an estimated total of USD 1 million to USD 2 million on travel and registration fees. Because they elected not to spend this money directly on serving poor people, Mr Massart challenged each delegate bring at least one additional person in to the financial system for each
Linden ‘Mark’ Mahfood and Robert Taylor recently launched Mundo Finance Limited, a Jamaican firm offering “short-term business loans, trade financing and personal loans” as well as financing for “solar installations in partnership with Alternative Power Solutions.” Mundo CEO David Lee reports that his company’s interest
On the second day of the SAM (Semaine Africaine de la Microfinance) conference, Godwin Ehigiamusoe of Nigeria’s LAPO discussed the needs and expectations of small and medium-sized enterprises (SMEs). He explained that they generally are sensitive to price and prefer not to post collateral. Loan sizing and duration are key. From a lender’s perspective, SMEs need to get their records out of their heads and onto paper (if not into digital form). The Central Bank of Nigeria has six Entrepreneurship Development Centers at which business owners can get assistance with business plans and other support.
Mr Ehigiamusoe explained that LAPO became involved with SME lending as its microenterprise clients grew. Likewise the staff of LAPO was in need of capacity development to serve their clients’ evolving needs. LAPO’s Sufen loan program is designed to identify female entrepreneurs with high growth potential and
After Tuesday’s sessions at the the SAM (Semaine Africaine de la Microfinance) conference, Olivier Massart, the General Manager of ADA, and Eric Campos, Managing Director of the Grameen Credit Agricole Microfinance Foundation (GCAMF), signed an agreement to collaborate on their institutions’ service delivery to microfinance institutions. Mr Massart explained that the two Luxembourgish NGOs will work “hand in hand” in areas including the measurement of social impact. ADA specializes in technical assistance, and although GCAMF also provides technical assistance, it is a major local-currency funder of microfinance institutions (MFIs). Both institutions prioritize working with MFIs that serve people in rural areas as well as women in general.
Mr Campos told MicroCapital that a primary motivation for the collaboration is to reduce the workload for MFIs, which are often called upon to submit substantial amounts of overlapping data to funders and other interested parties. He also spoke passionately about how MFIs can maintain market share as fintech
Empower Generation, a US-based social enterprise that supports clean energy and women’s entrepreneurship in Nepal, recently
During the SAM (Semaine Africaine de la Microfinance) conference today, Willie Mzumala of Malawi’s Tapika Food Products described how he has grown his business over 13 years to employ 9 people year-round plus additional seasonal staff. However, he still is offered loans at interest rates as high as 45 percent. In addition to affordable financing, he sees a need for small and medium-sized enterprises (SMEs) to get help with marketing, getting international exposure and standardizing quality.
Richard Muteti of the Kenya National Federation of Jua Kali Associations repeated Mr Mzumala’s call for help with standardization and more affordable financing. Among other barriers to SME success, he cited lack of appropriately
The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral development institution, is providing
Today at the SAM (Semaine Africaine de la Microfinance) conference, Laura Foschi of ADA addressed the question of “how to support enterprises as they make the transition from micro- to small and medium-sized.”
Rebecca Rouse of Innovations for Poverty Action (IPA), described how randomized controlled trials can help determine “how can we best create value, spaces and opportunities for small and medium-sized enterprises (SMEs) and SME growth.” For example, evaluating the effectiveness of a business training program is much more enlightening when
Italy’s MicroFinanza Rating (MFR) issued two microfinance institutional ratings during September. Palestine’s Asala Company for Credit and Development was assigned a grade of BB+ with a “stable” outlook, and Inkunga Finance of Rwanda was assigned a grade of
C-Quadrat Asset Management, an arm of Austrian fund manager C-Quadrat, recently informed MicroCapital that its Dual Return Vision Microfinance funds lent a total approximately equivalent to USD 31 million to unidentified microfinance institutions (MFIs) in five Asian countries, Bangladesh, Cambodia, India, Kyrgyzstan and Pakistan, as well as three Latin American countries, Ecuador, Mexico and
The Nigerian government recently issued NGN 1.6 billion (USD 4.5 million) to the National Women Empowerment Fund (NAWEF), a new funding mechanism that will provide women with 6-month, collateral-free loans of between NGN 10,000 (USD 28) and NGN 100,000 (USD 278). The borrowers will pay a 5-percent administrative fee, but
An entity managed by Switzerland’s responsAbility Investments recently purchased a stake of undisclosed size and price in Fawry, a mobile payments platform in Egypt. Fawry has 20 million customers, whom it enables to pay bills and make retail purchases via mobile phones, credit cards, automatic teller machines, accounts at 23 banks, and point-of-sale machines at 65,000
Juvo, a US-based company that offers lines of credit to individuals in emerging markets, recently raised USD 40 million from investors including New Enterprise Associates (NEA) and Wing Venture Capital, both of which are also based in the US. Juvo plans to use the funding to
Developing World Markets (DWM), a fund manager based in the US state of Connecticut, recently announced that