The Ministry of Finance and the Ministry for Foreign and European Affairs of the Grand Duchy of Luxembourg recently agreed to give EUR 3.6 million (USD 4 million) to the EU’s European Investment Bank (EIB) for microfinance in low- and middle-income countries of Asia, the Caribbean and the Pacific (ACP). The funding is for institutions serving
Category: Africa
MICROFINANCE EVENT: Africa Trade and Investment Convention; March 26-27, 2021; Amsterdam, the Netherlands – NEW DATES
Previously scheduled to take place in April 2020, this event offers a B2B Matchmaking Forum, country-specific meetings, and sessions on topics such as: financing agriculture, value chains, magnifying the potential of youth and women, “The Role of the Diaspora,”
MICROCAPITAL BRIEF: With “Homeland” App, MTN Opens Remittance Channels from Europe to Africa, Afghanistan, Yemen
South Africa’s MTN Group recently released an application for mobile phones called MTN Homeland that allows users to send money or airtime to 17 countries from Europe. The service allows cash remittances to Cameroon, Congo Brazzaville, Ghana, Guinea Conakry, Rwanda and Uganda. It also allows the sending of
MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Loans $1.7m to EFC Zambia, Provider of Housing, Microenterprise Loans
The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, has loaned local currency approximately equivalent to USD 1.7 million to Entrepreneur Financial Centre (EFC) Zambia, a microfinance institution offering loans and savings services, mainly in urban areas. Founded in 1996, the microbank offers loans for working capital, invoice
SPECIAL REPORT: SheInvest to Deliver $1.1b to Women in Africa, Access Bank’s “Beta Friends” Bringing Digital Savings to Market Sellers, Women Move Slowly to Mobile Money: All at European Microfinance Week
At
Friday’s session on gender and financial inclusion during European Microfinance Week, Enrico Pini of the European Investment Bank (EIB) argued that, “It’s smart business,” to boost opportunities for women. Such is the motivation for EIB’s SheInvest program, which is scheduled to mobilize EUR 1 billion (USD 1.1 billion) to invest in entrepreneurship, financial inclusion, digital inclusion and climate-resilience efforts for African women.
Njideka Nwabueze of Nigeria’s Access Bank described her company’s product, “Beta,” which translates as “Good” in the local language. She said that many poor women use informal savings schemes because they do not believe that banks offer products that meet their needs. One of these women’s priorities is easy access to funds. Women who sell products in a market, for example, risk losing a good selling spot if they leave during the day to visit a bank. Also, bank lines can be very long.
This is why, six years ago, Access launched Beta, an interest-bearing savings account that leverages mobile money but is
SPECIAL REPORT: Are MFIs Making Child Labor Worse? Willing to Test a Risk-assessment Prototype? How Can Schools Boost Child Protection? Why Buy Disposable Sanitary Pads When You Can Sew Reusable Ones?
During Thursday’s “Risky Business” session at European Microfinance Week, Patricia Richter of the UN’s International Labour Organization (ILO) led the audience through a poll of audience members’ personal work histories and how they think microfinance institutions (MFIs) can help reduce child labor. The audience voted that MFIs should do more to “raise awareness among clients and households” about the issue. The ILO’s Minimum Age Convention of 1973, which has been ratified by 172 countries, specifies the youngest acceptable ages for various types of work, ranging from 12 years old for fewer hours of light work in developing countries to 18 years old for hazardous work in any country.
The motivations for adults to engage children in age-inappropriate work include: (1) the family’s need for more income; (2) social norms that encourage child labor or the passing down of skills from parents to young children; (3) insufficient educational opportunities; (4) market demand for
MICROCAPITAL BRIEF: Angaza, SIMA Launch Distributor Financing Fund for Off-grid Solar Power
Angaza, a provider of “pay-as-you-go” metering technology, and US-based Social Investment Managers and Advisors (SIMA), recently announced the launch of the SIMA Angaza Distributor Financing Fund (DFF), an investment vehicle that will lend to distributors of off-grid solar energy equipment. The partners expect the use of Angaza’s data tools by DFF’s partner distributors to
SPECIAL REPORT: “Trend Toward Rigor,” Microfinance Barometer, Financial Inclusion Compass Offer Views of the Past, Future at European Microfinance Week
At this week’s session titled “Looking Back / Looking Ahead” at European Microfinance Week, the European Microfinance Platform (e-MFP) officially launched the second Financial Inclusion Compass, a survey indicating the top trends in financial inclusion are: (1) digital transformation (institutional-side); (2) client protection; (3) digital innovation (client-side); (4) regulatory environments; and (5) social performance / impact measurement. Meanwhile, the document identifies the following as top “areas of focus:” (1) agri-finance; (2) climate change; (3) finance for small and medium-sized enterprises (SMEs); (4) finance for displaced populations; and (5) finance for youth.
Sam Mendelson of e-MFP notes that financial services providers (FSPs) responding to the Compass are more interested in
MICROFINANCE EVENT: 2nd African Islamic Fintech Summit; November 29 – 30, 2019; Dakar, Senegal
Focusing on “African financial inclusion in the digital era,” this event is a continuation of a similar summit held in Tunisia in March 2019. The event in Dakar will address the topics of Islamic finance, financial technology (fintech) and economic empowerment, in particular as they relate to West Africa.
SPECIAL REPORT: APA Insurance of Kenya Wins $110k European Microfinance Award for Index-based Livestock, Crop Products
From the European Microfinance Platform:
APA Insurance Ltd receives the 10th European Microfinance Award in recognition of its response to “Strengthening Resilience to Climate Change”
Photo © European Microfinance Award Studio
At a ceremony held at the European Investment Bank in Luxembourg, Paulette Lenert, Luxembourg Minister for Cooperation and Humanitarian Affairs, presented the 10th European Microfinance Award to APA Insurance Ltd of Kenya.
Since 2006, Luxembourg Directorate for Development Cooperation and Humanitarian Affairs, the European Microfinance Platform and the Inclusive Finance Network Luxembourg have been awarding a EUR 100,000 (USD 110,000) prize to the winner and, starting two years ago, EUR 10,000 (USD 11,000) to the two finalists.
This year’s winner, APA Insurance Ltd, is a Kenyan insurance company that provides
SPECIAL REPORT: Sibling Rivalry, Pre-disaster Microinsurance Payments, Protecting Climate-displaced People via International Law at European Microfinance Week
At today’s opening plenary of European Microfinance Week, Manuel Tonnar, who leads Luxembourg’s Directorate for Development Cooperation and Humanitarian Affairs, said that his country “is committed to transforming itself and helping others transform their economies into sustainable economies.” This is “not for charitable reasons,” he argued, “but because it’s the most efficient way” to move forward. Mr Tonnar also said, “Financial inclusion should be closely allied with other development interventions to provide the most value to disadvantaged populations.” In closing, he quoted Jean Monnet, who said, “I am not optimistic. I am not pessimistic. I am
MICROCAPITAL BRIEF: MFIs in Africa, Asia, Latin America Borrow $42m from C-Quadrat Dual Return Vision Microfinance Fund, Including ASA International’s Institutions in Ghana, Uganda
Two microfinance institutions (MFIs) in the ASA International network, those in Ghana and Uganda, recently accepted local-currency loans from the Dual Return Vision Microfinance-Local Currency sub-fund of Austria-based C-Quadrat Asset Management. That sub-fund, together with the Dual Return Vision Microfinance sub-fund issued a total equivalent to USD 42 million during October. The other borrowing MFIs are located in Cambodia,
MICROCAPITAL BRIEF: Mastercard Foundation Commits $300m to Bring “Young Africa Works” to Ethiopia
The Canada-based Mastercard Foundation recently committed USD 300 million to Ethiopia to expand Young Africa Works, an initiative intended to create job opportunities for 30 million young Africans, 70 percent of whom are women, in 10 countries by 2030. The effort, which was launched in partnership with Ethiopia’s Jobs Creation Commission (JCC), will fund programs that
MICROCAPITAL BRIEF: Motorcycle Taxi Leasing Company Tugende of Uganda Raises $13m, Looks to Expand Its Boda-boda Finance to Kenya
Uganda’s Tugende, which specializes in leases for motorcycle taxis known as boda-bodas, recently raised USD 13 million from undisclosed sources with the support of Verdant Capital. Of this total, USD 2 million has been disbursed so far. Tugende has 14,000 active leases and a loan book of USD 13.7 million as of September 2019, up four-fold since January 2018. Its 30-day portfolio-at-risk ratio remains below 1 percent, and Verdant calls the firm “robustly profitable.”
Tugende, which translates as “let’s go,” has 16 branches in Uganda and recently received a license to
SPECIAL REPORT: Harnessing Digital Finance, Protecting Consumers at the UNCDF/SAM Night for Digital and Inclusive Finance
During 
the recent UNCDF/SAM Night for Digital and Inclusive Finance, UN eTrade for Women Advocate Patricia Zoundi-Yao discussed the importance of agriculture to Burkina Faso as well as West Africa in general. She noted that 80 percent of the fruits and vegetables cultivated in the region are grown by women. She argued that these farmers need support to minimize pesticide use and reduce the clearing of forests. For example, Ms Zoundi-Yao suggests that governments guarantee the purchase of farmers’ crops. Regarding digital financial services, she proclaimed, “No one is to be left behind by this revolution!”
Hermann Messan of the UN Capital Development Fund (UNCDF) explained how internet access can help farmers learn about agricultural best practices, check the weather to time their application of fertilizer, apply for loans and insurance, check crop prices, and purchase running time for
MICROFINANCE EVENT: Africa Aid & Humanitarian Finance Conference; November 19 – 20, 2019; Nairobi, Kenya
This event will focus on financial solutions for humanitarian work beyond donor funding. The conference and exhibition will touch on topics such as
SPECIAL REPORT: Solar Kits for Reselling Power, Internet Access; Staff Training by Subscription; Free Business Planning Software on Offer as 30 Firms Showcase Inclusive Finance Products at SAM Innovators’ Village (Part Two)
Thirty organizations shared their latest products during the Innovators’ Village at the SAM conference held recently in Burkina Faso. Among these was Qotto, a provider of kits that bring solar power and internet to off-grid households. The kits include battery packs and can be used to run appliances such as lamps, televisions and telephone chargers. The system includes an app for tracking usage and allowing Qotto and the owner to share revenue from selling phone recharges or wireless internet access to neighbors.
Eclectics International offers a core banking system for financial services providers (FSPs) that was designed “by Africans for the African market.” Its features allow for loan disbursal via mobile money, as well as integration with
SPECIAL REPORT: Credit Scoring Methods, Data for Farmers, Digital Financial Services on Offer as 30 Firms Showcase Inclusive Finance Products at SAM Innovators’ Village (Part One)
Dozens of firms presented their newest technologies and other products during the full-day Innovators’ Village of the recent SAM conference. Among these was ICCO Cooperation, whose representatives described their organization’s ACAT tool for evaluating the creditworthiness of agricultural producers. ACAT, which was designed in partnership with the French bank Crédit Agricole, offers features to help loan officers who do not specialize in agriculture to evaluate producers’ operations. The tool calculates the input needs per hectare for crops such as sesame as well as predicting farmers’ income. While the pilot phase has gone well, there have been a few challenges, such as poor internet connectivity and difficulty calculating the sizes of the farmers’ plots due to deficient land surveys.
Mohamed Asri of HPS (Hightech Payment Systems) discussed his firm’s PowerCard core banking system, which allows the “client to act as an agent.” The