MICROFINANCE PUBLICATION ROUND-UP: Free-riding vs Group Insurance; “Responsible” Microfinance Pricing; State of Microinsurance

“The Social Dilemma of Microinsurance: Free-riding in a Framed Field Experiment;” by Wendy Janssens and Berber Kramer; published by Elsevir; March 2016; 15 pages; available at:
http://www.sciencedirect.com/science/article/pii/S0167268116300166

This paper analyzes the incentives for individuals to buy health microinsurance while active in borrowing groups. Health issues are consistently among the top reasons people become unable to repay loans.

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.

MICROCAPITAL BRIEF: FMO Lending $4m to Babban Gona to Provide Business Services on Credit to Farmers in Nigeria

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden, a development bank controlled by the Dutch government, recently offered a loan of USD 4 million to Babban Gona, a Nigerian for-profit company that provides business services to small-scale farmers such as assistance with crop insurance; soil analysis; marketing; distribution; and access to seeds, fertilizer and storage facilities.

MICROCAPITAL BRIEF: The MasterCard Foundation Fund for Rural Prosperity Awards $3m to Ibero Uganda, First Access, Letshego; Is Accepting Applications for More Funding Through August 10

KPMG, a network of professional firms providing business services in 155 countries, recently informed MicroCapital that The MasterCard Foundation Fund for Rural Prosperity has awarded USD 1 million each to the following financial services providers: Ibero Uganda for the provision of loans, training and related services to coffee farmers; US-based First Access for an agricultural credit scoring mechanism for lenders serving farmers in Tanzania; and Botswana-based Letshego Financial Services for an agency banking project in Mozambique.

MICROFINANCE PUBLICATION ROUND-UP: Financial Literacy, Gender Disparity in the Solomon Islands; Savings Groups’ Impact in Ghana, Malawi, Uganda; Financial Inclusion Survey in Vanuatu

“Case Study: SolTuna – Tuna Processing, Solomon Islands;” published by the International Finance Corporation; September 2016; 20 pages; available at:
http://www.ifc.org/wps/wcm/connect/d4561543-cc39-4a9d-9963-26eb5ab4169c/soltuna_updated_May2017.pdf?MOD=AJPERES

This case study investigates the connections between financial literacy and the reduction of absenteeism and other problems at SolTuna, a tuna processing plant in the Solomon Islands.

MICROCAPITAL BRIEF: IFC Loans $17m to Romania’s Agricover for Lending to Small, Medium-sized Agricultural Businesses

The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently announced it will loan RON 70 million (USD 17 million) to Agricover Credit, a non-banking financial institution in Romania, to boost the financial inclusion of farmers as well as small and medium-sized agribusinesses in Romania.

MICROCAPITAL BRIEF: Uzbekistan Borrows $500m from ADB to Build 29k Rural Housing Units Mortgaged by Ipoteka Bank, National Bank of Uzbekistan, Qishloq Qurilish Bank

The Asian Development Bank (ADB), a Philippines-based multilateral institution, recently announced it will issue a loan of USD 500 million as part of an effort to build 29,000 new “affordable” houses in rural parts of nine regions of Uzbekistan.

MICROCAPITAL BRIEF: Women Leverage Microfinance to Create Agribusinesses in Fushun, China

From 2010 through 2017, the city of Fushun, in northeastern China, invested CNY 2.8 billion (USD 406 million) in a subsidized microcredit program for agriculture, reaching 57,000 female entrepreneurs, primarily those whose husbands live elsewhere for work.

MICROFINANCE BRIEF: Pakistan’s Khushhali Microfinance Bank Borrows $20m from ADB for Farmers, MSMEs

The Asian Development Bank (ADB), a Philippines-based multilateral institution, recently announced it will loan USD 20 million to Khushhali Microfinance Bank Limited of Pakistan to “expand access to credit for agriculture-related borrowers and small businesses.”

MICROCAPITAL BRIEF: Incofin Sells Equity Stakes in Microfinance Institution Financiera Confianza of Peru, Affiliate of Fundacion BBVA MicroFinanzas

Belgium’s Incofin Investment Management (Incofin IM) recently informed MicroCapital that three of its funds, Incofin CVSO, Volksvermogen and Rural Impulse Fund I, have sold their stakes in Financiera Confianza, a Peruvian microfinance institution (MFI) affiliated with Fundacion BBVA MicroFinanzas, which in turn was launched by Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) in 2007. While the sizes and prices of the stakes, which included all Confianza shares held by Incofin IM funds, remain confidential, Incofin IM reports that the funds earned “over

MICROFINANCE EVENT: Global Forum on Remittances, Investment and Development 2017; June 15-16, 2017; New York, United States

Event Name: The Global Forum on Remittances, Investment and Development 2017

Event Date: June 15 – 16, 2017

Event Location: United Nations Headquarters, New York, New York, United States

Summary of Event: This two-day event will address ways to achieve the United Nations Goals for Sustainable Development through discussions of global governance, migrant investment

MICROCAPITAL BRIEF: Canadian Government, KfW Contract with Développement international Desjardins (DiD) to Develop Capacity of Benin’s Microfinance Industry

Canada’s Développement international Desjardins (DiD) recently announced it has received funding from the Canadian government and Germany’s KfW (Kreditanstalt für Wiederaufbau) Development Bank to continue its work to strengthen Benin’s financial sector. The Canadian government awarded DiD a six-year contract to support 10 financial institutions and four related organizations

MICROCAPITAL BRIEF: Uzbekistan Liberalizes Lending Rules for Microenterprises in Remote Areas, in Regions of High Unemployment or Lacking Established Legal Status

The government of Uzbekistan recently announced that it will allow small-scale entrepreneurs to access loans of up to 20 times country’s monthly minimum wage of UZS 149,775 (USD 40) “without the establishment of legal entit[ies].”

MICROCAPITAL BRIEF: Zimbabwe May Require Banks to Accept Moveable Collateral Such as Livestock, Accounts Receivable, Vehicles in Effort to Boost Financial Inclusion

The party of Zimbabwean President Robert Mugabe recently proposed a law that would require lenders to accept “moveable” assets, such as machinery, vehicles, livestock and accounts receivable, as collateral. Finance Minister, Patrick Chinamasa, said the legislation would “promote

MICROCAPITAL BRIEF: NpM, Rabobank, FMO Promote Satellite Data to Help Farmers Improve Yields, Access Finance

The NpM Platform for Inclusive Finance, formerly known as the Netherlands Platform for Microfinance, and the Rabobank Foundation, an affiliate of the Dutch cooperative Rabobank, recently launched an effort called “Geodata for Inclusive Finance and Food Security.” The goal is to encourage the use of satellite data to improve agricultural yields, for example by

MICROCAPITAL BRIEF: Incofin’s agRIF Raises $27m for Financial Inclusion in Agriculture from Investors Including AXA, KBC, Korys, Invest in Visions, MRBB

Belgium’s Incofin Investment Management recently informed MicroCapital that its agRIF, the successor to the Rural Impulse Funds I and II, has raised USD 27 million in unspecified portions from multiple investors, bringing its size