The International Development Association (IDA), a unit of the World Bank, recently agreed to lend USD 15 million to Djibouti for a project intended to: (1) scale up an existing partial guarantee fund to boost
Category: Africa
MICROCAPITAL BRIEF: DEG Loans Husk Power $750k for Solar Microgrids in Nigeria, India
The German development finance institution Deutsche Investitions-und Entwicklungsgesellschaft (DEG) recently lent USD 750,000 to Husk Power Systems, an India-based supplier of small-scale electricity generation and distribution networks, to construct
MICROCAPITAL BRIEF: African Fintech Nala Expands Remittance Service to EU, Launches Business Platform
Nala, a payments company launched in Tanzania in 2018, recently added 19 EU nations to the range of markets from which its users may send money transfers. The app targets
MICROCAPITAL BRIEF: SentBe Launches Remittances from US to 50 Countries
The South Korean money-transfer service SentBe recently announced the official launch of its service allowing individuals to send remittances from the US to Australia, Canada, Nigeria, member nations of the EU and 24 additional countries in Eurasia. The firm also serves individuals sending payments from
MICROCAPITAL BRIEF: FMO, Proparco Lend $125m to NMB for MSME, Agriculture, Green Financing in Tanzania
The Dutch development bank Financierings-Maatschappij voor Ontwikkelingslanden (FMO) recently led a senior loan package of USD 125 million in favor of Tanzania’s National Microfinance Bank (NMB). NMB is a commercial bank offering
MICROFINANCE PAPER WRAP-UP: “Driving Financial Resilience Through Formal Savings Among the Low-Income Population,” by Laura Courbois et al, Published by World Savings and Retail Banking Institute
This paper explores the extent to which saving through the Scale2Save program allows customers to increase their financial resilience. Two NGOs, the Canada-based Mastercard Foundation and the Belgium-based World Savings and Retail Banking Institute, created
MICROCAPITAL BRIEF: Zanaco Borrows $50m from BII to Support MSMEs, Climate-change Mitigation in Zambia
Zambia National Commercial Bank (Zanaco) recently borrowed USD 50 million from British International Investment (BII), the UK government’s development finance institution, with the goal of funding micro-, small and medium-size enterprises (MSMEs) as well as climate-focused initiatives such as renewable energy generation. BII is looking to
MICROFINANCE PAPER WRAP-UP: “Digital Finance Campaign Replication Guide,” Published by USAID
This paper describes a digital finance education campaign called “Hey Sister! Show Me the Mobile Money,” including efforts to make it easy to replicate from one geographical context to another. The program facilitates low-income women’s access to digital financial services (DFS) by addressing the challenges of
MICROCAPITAL BRIEF: Lulalend Raises $4.7m for SMEs in South Africa via Symbiotics Social Bond
Lulalend, a funder of small and medium-sized enterprises (SMEs) in South Africa, recently partnered with Symbiotics Investments, a Switzerland-based investor focused on smaller businesses in low- and middle- income countries, to issue bonds supplying USD 4.7 million to Lulalend. The bond issue is deemed socially responsible per the
MICROCAPITAL BRIEF: CCAF-World Bank Study Finds Regulators in Africa Tops for Increasing Focus on Fintech, Cybersecurity Main Concern Worldwide
A recent survey of 128 financial regulators and supervisors worldwide found that just over half of respondents in low- and middle-income countries have been increasing their focus on financial technology (fintech) firms. The figure is about one out of three in
MICROCAPITAL BRIEF: DFC to Support Mastercard Community Pass Program to Expand Access to Digital Services in Africa, India
The International Development Finance Corporation (DFC), which is backed by the US government, recently agreed to collaborate with the US-based financial technology firm Mastercard to strengthen Mastercard’s Community Pass program. Community Pass supports digital connectivity, smartphone penetration and identification systems in rural parts of India, Kenya, Mauritania, Mozambique, Tanzania and Uganda. DFC has agreed to invest up to USD 50 million in
MICROCAPITAL BRIEF: MICT Buys Tingo, Expands Agritech to Ghana & Malawi, Connecting More Farmers with International Markets
MICT, a US-based, publicly traded provider of financial and technology services in Eurasia and the US, recently closed its purchase of Tingo, a US-based provider of technology services to farmers in Africa. Meanwhile, Tingo has expanded its operations into Ghana and Malawi. The firm’s services include access to pricing and markets – domestic and international – as well as an escrow
MICROCAPITAL BRIEF: Woman-owned Fintech Owoafara Accepts Equity Investment from ShEquity to Expand Financial Inclusion via Apps, Payment Cards in Nigeria
Owoafara, a woman-owned financial inclusion firm in Nigeria, recently sold an equity stake of undisclosed size and price to ShEquity, a Mauritius-based investor in African firms owned and led by women. Owoafara’s services include payment cards, a general-purpose financial services app Fara and a peer-to-peer lending app Rouzo. Fara facilitates savings, payment, lending, insurance and pension services.
Owoafara CEO Tale Alimi noted the firm’s plans to expand in West Africa, adding, “Eighty percent of our current loan book are to
MICROFINANCE EVENT: Microfinance Technology Summit; March 28-29, 2023; Kigali, Rwanda
This event will promote networking among representatives of microfinance institutions (MFIs) and technology firms to leverage innovations that improve
MICROCAPITAL BRIEF: Goodwell Launches uMunthu II Fund for SMEs in Africa
Netherlands-based Goodwell Investments recently launched the uMunthu II fund with USD 52 million raised and a goal for it to reach three times that volume. The fund will target about 35 small and medium-sized businesses reaching underserved consumers in Africa, including about one third financial services providers, one quarter
MICROCAPITAL BRIEF: Sun King Nets $10m from Proparco for Solar Products in Africa via Bond Issue Arranged by Symbiotics
Symbiotics Investments, a Switzerland-based investor focused on smaller businesses in low- and middle- income countries, recently arranged a bond issue channeling USD 10 million from the French development finance institution Promotion et Participation pour la Coopération Économique (Proparco) to Sun King, a US-based firm selling solar products in Arica and Asia. Formerly known as GreenLight Planet, Sun King was founded in 2009. Its products include five types of solar lights, four types of home solar electrification kits and an inverter to
MICROFINANCE EVENT: SuperReturn Africa; December 5-7, 2022; Cape Town, South Africa
The 13th edition of this event will focus on “market trends, challenges and innovations” in Africa. On December 5, the event will feature summits covering three topics: (1) fundraising; (2) infrastructure; and (3) ESG [environmental, social and governance issues] & impact. The remaining days will
MICROCAPITAL BRIEF: Babban Gona Borrows $5m from Huruma Fund to Support Smallholder Farmers in Nigeria, Prepare for International Expansion
Spain’s Gawa Capital, manager of the public-private Huruma Fund, recently disbursed the fund’s second investment in Africa, lending EUR 5 million (USD 5.2 million) to Babban Gona, a Nigerian firm that supports 81,000 farmers with financing, inputs, training