MICROCAPITAL BRIEF: Fefisol Buys Equity Stake in Microfinance Institution Musoni of Kenya for $1m

Kenyan microlender Musoni recently took on its sixth shareholder, selling a stake of unspecified size for KES 100 million (USD 1 million) to Fonds Européen de Financement Solidaire (Fefisol), a fund managed by Alterfin, which is a Belgian investor in microfinance and

MICROFINANCE EVENT: ICT4D (Information and Communications Technology for Development); May 8 – 10, 2018; Lusaka, Zambia

Summary of Event: This event will address how technology can help meet the UN’s Sustainable Development Goals. Sessions will be themed around areas including Digital Financial Inclusion, Agriculture & Environment, and

MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lends $2.2m in Local Currency to Advans, Premiere Agence de MicroFinance (PAMF) of Cote d’Ivoire

The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, recently informed MicroCapital that it is extending the following local-currency loans: the equivalent of USD 1.24 million to Advans Cote d’Ivoire, a unit of Luxembourg’s Advans SA, and the equivalent of USD 950,000 to Premiere Agence de MicroFinance (PAMF) Cote d’Ivoire, an affiliate of Switzerland’s Aga Khan Agency for Microfinance.

Founded in 2012, Advans Cote d’Ivoire has a gross loan portfolio of EUR 74 million (USD 92 million), client deposits of EUR 46 million (USD 57 million), and 79,000 clients served via 12 branches as of June 2017. Advans SA, which is active in 10 countries

MICROFINANCE PAPER ROUND-UP: Measurement: from Financial Access to Economic Empowerment; Savings Groups’ Impact; MFIs’ Role with Startups

“Advancing Financial Inclusion Metrics: Shifting from Access to Economic Empowerment,” by Matthew Blake and Drew Propson, published by the World Economic Forum, January 2018, 24 pages, available at
http://www3.weforum.org/docs/WEF_White_Paper_Advancing_Financial_Inclusion_Metrics.pdf

The authors of this report address how to improve the measurement of financial inclusion and ultimately how to bridge financial inclusion with financial health. They identify the following mechanisms as critical to successful financial inclusion: (1) payments; (2) savings; (3) credit; and (4) regulation and policy. Regarding the connection of financial inclusion to financial health, the authors consider three case studies: (1) Insight2Impact, a data-analysis company seeking to measure financial inclusion based on the needs of consumers rather than on the products they are offered; (2) the nonprofit Center for Financial Services Innovation (CFSI), which measures “long-term” consumer outcomes in the US; and (3) the application of CFSI’s model to other countries by

MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lends $3m in Local Currency to Asian Credit Fund of Kazakhstan, Oxus Tajikistan for Microfinance

Two microfinance institutions (MFIs) in Central Asia are among those that recently borrowed from the Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg. Both of the loans are denominated in local currency and have terms of three years. Neither MFI accepts deposits.

The Asian Credit Fund, an MFI controlled by US-based NGO Mercy Corps, borrowed the equivalent of

MICROCAPITAL BRIEF: Smallholder Finance Product Explorer from MIX, One Acre Fund Highlights Microfinance Institutions’ Agricultural Loan Offerings

Two US-based NGOs, MIX, a data provider also known as the Microfinance Information Exchange, and the One Acre Fund, which seeks to develop “market-based strategies to fight rural poverty,” recently rolled out public access to a set of data on financial services for small-scale farmers called the Smallholder Finance Product Explorer. The service, which is part of the MIX Market database, is slated to grow from its current level, which includes

MICROCAPITAL BRIEF: Fusion Microfinance of India Raises $12m in Equity from Creation Investments, Oikocredit, Gawa Capital

Fusion Microfinance, a lender to groups of women in India, recently raised INR 800 million (USD 12.4 million) in unspecified portions from US-based Creation Investments, Netherlands-based Oikocredit and Spain-based Gawa Capital Partners. All three of the investors were already shareholders in the microlender. Fusion plans to use the cash to invest in

MICROCAPITAL BRIEF: Fundacion BBVA MicroFinanzas Continues Buying Equity in Microfinance Institution Financiera Confianza of Peru with responsAbility Transaction

Fundacion BBVA MicroFinanzas, which was launched by Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) in 1998, recently added to its shareholding in Financiera Confianza, a Peruvian microfinance institution (MFI) by purchasing the stake held by Switzerland-based responsAbility Investments. Although the size and price of the holding, which responsAbility began building in 2008, remains confidential, responsAbility reports that it earned “over three

MICROCAPITAL BRIEF: Pride Uganda, Harvesting, CGAP Partner to Develop Alternative Credit Scoring Model to Boost Microfinance, Crop Yields for Small-scale Coffee Farmers

With support from US-based nonprofit CGAP (the Consultative Group to Assist the Poor), US-based social enterprise Harvesting Incorporated is partnering with Pride Microfinance, which is owned by the government of Uganda, to devise a new model for lending to small-scale coffee farmers in Uganda. Greta Bull, the CEO of CGAP, states that “limited access to timely credit products for agricultural inputs [is detrimental to farmers’] crop yields and productivity.” This project will combine traditional data sources with “alternative” ones, such as

MICROCAPITAL BRIEF: India’s Odisha State Encouraging Banks, Microfinance Institutions to Open 656 “Banking Outlets” in Unserved Rural Areas

By March 2019, the eastern Indian state of Odisha is encouraging financial institutions to open “banking outlets” in 656 gram panchayats (villages) that are at least

MICROCAPITAL BRIEF: Tanzania’s Second National Financial Inclusion Framework Calls for Radio Broadcasts, ID Cards, Credit Bureaux, Mobile Banking to Grow Economy to Middle Income

The government of Tanzania recently launched its second five-year National Financial Inclusion Framework with the aim of helping boost the country to middle-income status by 2025 by shifting focus from access to financial services to the usage of those services, especially by youth and women. By 2022, benchmarks include increasing the usage of formal financial services from 65 percent to 75 percent of the population and the usage of insurance from 15 percent to

MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lends $3.6m in Local Currency to Microfinance Institutions in Indonesia

The Luxembourg-based Grameen Credit Agricole Foundation (GCAF) recently informed MicroCapital that it has disbursed three-year loans denominated in local-currency to two microfinance institutions in Indonesia. Koperasi Mitra Dhuafa (Komida), a cooperative providing savings, loans and training services to women, borrowed the equivalent of

MICROCAPITAL BRIEF: responsAbility Agriculture I Fund Takes Equity Stake in Indian Value-chain Lender Samunnati

Switzerland-based responsAbility Investments recently disbursed the first investment from its private equity fund responsAbility Agriculture I, acquiring a “significant” minority stake in Samunnati, a non-banking financial company in India that provides loans and advisory services to players in agricultural value chains. Although the price and size of the stake remain confidential, responsAbility Agriculture I generally places investments of

MICROFINANCE EVENT: International Conference on Responsible Inclusive Finance; March 21 – 22, 2018; Kigali, Rwanda

Summary of Event: As related to delivering “responsible” financial services, this conference will cover client protection, enabling environments, client perspectives and digital payments, including serving the

MICROCAPITAL BRIEF: Global Parametrics, 6 VisionFund Microfinance Institutions Prepare for Climate Disasters Under African and Asian Resilience in Disaster Insurance Scheme (ARDIS)

Global Parametrics, a for-profit risk manager funded by UK-based and German development institutions, and the UK-based NGO VisionFund International recently established the African and Asian Resilience in Disaster Insurance Scheme (ARDIS), to protect six VisionFund microfinance institutions (MFIs). In case of drought or extreme storm, the MFIs can access up to USD 10 million to manage delays in client repayments and

MICROCAPITAL BRIEF: 11 Microfinance Institutions in Cambodia Lose Licenses for Noncompliance

The National Bank of Cambodia (NBC), the central bank of the country, recently revoked the licenses of 11 microfinance institutions (MFIs) for failing to maintain compliance with a “diverse” range of rules. The MFIs, which are classified as “rural credit operators,” reportedly comprise a