MICROCAPITAL BRIEF: Microloan Delinquencies Rise from 0.5% to 11% Following Demonetization in India

India Ratings, a subsidiary of US-based Fitch Group, recently announced that its “0+ days delinquency index” increased from 0.45 percent to 10.82 percent in the four months following November 2016 and thus concluded that the Indian government’s demonetization had a significant negative effect on microlenders [1]. Continue reading

MICROCAPITAL BRIEF: COMUBA of Benin, COOPEC SIFA of Togo Borrow $1m from Grameen Credit Agricole Microfinance Foundation (GGAMF)

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to social businesses, recently informed MicroCapital that it has committed to extending the following loans in phases over three years: the equivalent of USD 615,000 to La Coopérative Des Membres Unis Bethel Actions (COMUBA) in Benin and the equivalent of USD 350,000 to Coopérative d’Epargne et de Crédit des Soutien aux Initiatives de Femmes pour l’Autopromotion (COOPEC SIFA) in Togo. Continue reading

MICROCAPITAL BRIEF: Equator’s Shore Capital Fund III Raises $15m from AfDB to Invest in Financial Inclusion in Africa

The African Development Bank (AfDB), a multilateral institution providing loans and grants to governments and private companies in Africa, recently agreed to invest USD 15 million in Shore Capital Fund III, which is managed by Equator Capital Partners LLC, a US-based “impact” fund manager, with the goal of “expand[ing] access to affordable and responsible financial products and services for the underserved market.” Continue reading

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MICROCAPITAL BRIEF: First Merchant Bank Acquiring Opportunity International Bank of Malawi to Boost Microfinance Services

First Merchant Bank, a Malawi-based financial institution, recently announced it will pay an undisclosed price to acquire Opportunity International Bank of Malawi (OIBM), a microbank affiliated with US-based NGO Opportunity International. Continue reading

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SPECIAL REPORT: ADA’s Laura Foschi on Creating Value for SMEs at SAM in Ethiopia, October 2017

MicroCapital: How has SAM (Semaine Africaine de la Microfinance) evolved since its launch four years ago?

Laura Foschi: We held the first edition of SAM in 2013 in Arusha, Tanzania. Our goal was to align the annual meetings of three networks of African microfinance institutions: the Africa Microfinance Network (AFMIN), African Microfinance Transparency (AMT) and the Microfinance African Institutions Network (MAIN). We had conference sessions on the first day, the networks’ general assemblies on the second day and an Investor’s Fair on the third day. During the week, we realized the potential of SAM to become a major African inclusive finance event.

We decided to move the location each time with the aim of engaging both French-speaking and English-speaking regions and organizations. In 2015, we held the conference in Senegal, expanding it to include two days of conference sessions and a broader range of parallel events. We were pleasantly surprised to have our registrations double to over 500 people! Perhaps for the fourth edition we will move to North Africa or Southern Africa.

MC: How did you select Ethiopia for the 2017 SAM?

LF: In order to maintain Ethiopia’s strong economic growth, its large young population will need to achieve what we call “economic inclusion.” In order to address this challenge, the government of Ethiopia has prioritized both microfinance and Continue reading

MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GGAMF) Loans $1.7m in Kyrgyzstan to First MicroCredit Company (FMCC), Oxus

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to social businesses, recently informed MicroCapital that it has committed to extending loans totaling the following amounts in phases over three years: USD 1.15 million to First MicroCredit Company (FMCC) and the local-currency equivalent of USD 574,000 to Oxus Kyrgyzstan. Continue reading

MICROCAPITAL BRIEF: Netherlands’ FMO Issues $344k Convertible Loan to Umati Capital Kenya, Fintech Funding Agricultural Value Chain Actors

The Netherlands Development Finance Company, a government-backed institution also known by its Dutch acronym FMO, recently announced it will finance Umati Capital Kenya, a financial technology (fintech) firm, with a convertible facility in local currency equivalent to USD 344,000. Continue reading

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MICROCAPITAL BRIEF: Central Bank of Egypt Sets Credit Standards for Banks Lending to Microfinance Institutions

The Central Bank of Egypt (CBE) recently embarked on an effort strengthen the microfinance industry in the country. Banks have been given a uniform set of standards to use in evaluating requests for funding by microfinance institutions. Continue reading

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MICROCAPITAL BRIEF: International Finance Corporation (IFC) Syndicates $81m Loan for Banco Industrial do Brasil (BIB) to Support Small, Medium-sized Enterprises (SMEs)

The International Finance Corporation (IFC), a member of the World Bank Group, recently announced it has arranged a loan package of USD 81.2 million for Banco Industrial do Brasil (BIB). Continue reading

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MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GGAMF) Loans $6m to Proximity, BRAC, Vision Fund for Microlending in Myanmar

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to social businesses, recently informed MicroCapital that has committed to extending loans totaling the following amounts in phases over three years: the local-currency equivalent of USD 2.96 million to Myanmar’s Proximity Finance; USD 1.60 million to BRAC Myanmar; and USD 1.37 million to VisionFund Myanmar. Continue reading

MICROCAPITAL BRIEF: EBRD Lending $11m to Belarus’s Bank Moscow-Minsk for MSMEs

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral development institution, recently announced it will loan EUR 20 million (USD 23 million) to the Bank Moscow-Minsk, which is owned by the National Bank of Belarus. Continue reading

MICROCAPITAL BRIEF: Women’s Financial Inclusion Community of Practice Launches Website

As part of its launch, the Women’s Financial Inclusion Community of Practice (COP) recently released its website, https://www.microfinancegateway.org/organization/womens-financial-inclusion-community-practice, which is intended to facilitate discussions on best practices and solving shared challenges relating to delivering financial services to women with low incomes. Continue reading

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MICROCAPITAL BRIEF: AlHuda, Azerbaijan’s SER Agree to Promote Islamic Finance in the Caucasus

Two NGOs, the Pakistan-based AlHuda Center of Islamic Banking & Economics (CIBE) and Azerbaijan’s Studying of Economic Resources (SER) Public Union recently announced they will collaborate to promote Islamic finance in Azerbaijan and other countries in the Caucasus region. Continue reading

MICROCAPITAL BRIEF: Entrepreneurship Program for Innovation in the Caribbean (EPIC) Organizing Angel Investors to Improve SME Support

The World Bank Group’s Entrepreneurship Program for Innovation in the Caribbean (EPIC) is providing a framework for “angel” investors to work together to entertain pitches from and fund the development of “start-ups and early-stage enterprises” in the Caribbean region. Continue reading

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MICROCAPITAL BRIEF: Association of Microfinance Institutions of Rwanda Rolls Out “Responsible Finance Through Local Leadership and Learning Program”

In partnership with the US-based, nonprofit Small Enterprise Education and Promotion (SEEP) Network and The MasterCard Foundation of Canada, the Association of Microfinance Institutions of Rwanda (AMIR) recently rolled out the Responsible Finance Through Local Leadership and Learning Program. Continue reading

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