by Julia Korn -

MICROCAPITAL BRIEF: International Finance Corporation (IFC), A Member of the World Bank Group, Releases Business Report on East African Community (EAC)

The International Finance Corporation (IFC), part of the World Bank Group, has released a report called “Doing Business in the East African Community 2010.” The report examines business regulations in five East African countries: Burundi, Kenya, Rwanda, Tanzania, and Uganda [1].

by Conner Brannen -

MICROCAPITAL BRIEF: The European Fund for Southeast Europe (EFSE) Pledges $1b to Small Business in Southeast Europe In Preparation For Annual Meeting to be Held from June 8-10, 2010

European Fund for Southeast Europe (EFSE), an organization based in Germany that attempts to foster economic development in Southeast Europe through the provision of microcredit, pledged EUR 900 million (USD 1 billion) to various financial institutions to support small businesses in the Southeast region of Europe at a press conference held in Skopje, FYR Macedonia. The conference was held in order to prepare for the Fund’s Annual Meeting, which is to be held from June 8-10, 2010 in Ohrid, FYR Macedonia. The money is specifically meant to finance long-term loans to small business, in particular to micro- and small enterprises (MSEs), as well as housing improvement loans to low-income households.

by Conner Brannen -

MICROCAPITAL BRIEF: One of Tanzania’s Largest Banks, The National Microfinance Bank (NMB) Gives $63m in Loans to Small and Medium Enterprises (SMEs)

The National Microfinance Bank (NMB), one of Tanzania’s largest banks, has issued loans worth TSH 92 billion (USD 63 million) to about 45,000 small and medium enterprises (SMEs) countrywide [1]. Although NMB was largely privatized in 2005, with 49 percent of its shares in the hands of a consortium of banks and firms primarily in the Netherlands, the government of Tanzania continues to be the majority shareholder. According to Robert Pascal, the head of SMEs at NMB, the loans were issued in an effort to contribute to national social and economic development.

by Julia Korn -

MICROCAPITAL BRIEF: Freedom from Hunger Research Team in Davis, California, Attempts to Reconcile Opposing Arguments Regarding the Effect of Microfinance

The Freedom from Hunger Research Team in Davis, California has released an opinion piece in an effort to mediate the two sides of an argument regarding the influence of microfinance.

by Julia Korn -

MICROCAPITAL BRIEF: Six Microfinance Organizations Release Document Citing the Advantages of Microfinance as Response to “The Miracle of Microfinance? Evidence From a Randomized Evaluation” by Abhijit Banerjee, Esther Duflo, Rachel Glennerster, and Cynthia Kinnan

As a response to skepticism of the success of microfinance in a study done by economists Abhijit Banerjee, Esther Duflo, Rachel Glennerster, and Cynthia Kinnan, six organizations released an open letter citing the advantages of microfinance.

by the MicroCapital Team -

SPECIAL REPORT: Interview with Dirk Reinhard, Vice Chairman of the Munich Re Foundation and Member of the Executive Committee of the Microinsurance Network

Thank you to the Microinsurance Network for permission to reprint its recent interview with Dirk Reinhard, instigator of the International Microinsurance Conferences:

In light of the upcoming 6th International Microinsurance Conference taking place between 9-11 November in Manila, Philippines, Dirk Reinhard, Vice Chairman of the Munich Re Foundation and member of the Executive Committee of the Microinsurance Network, answers a few questions regarding the past, present and future of this pioneering conference.

Microinsurance Network: How did the first International Microinsurance Conference come about in Munich? What were the aims of this conference and who were behind it?

Dirk Reinhard: Munich Re – which founded the Munich Re Foundation in April 2005 – concerns itself with the great challenges facing the world today – population growth, globalisation, diminishing resources, environmental pollution and climate change.

by Matthew Castner -

MICROCAPITAL BRIEF: LuxFLAG and MicroRate Announce LUMINIS Microfinance, Internet-Based Microfinance Investment Vehicle Information Service

LuxFLAG (Luxembourg Fund Labeling Agency), the Luxembourgian microfinance investment vehicle (MIV) certification organization, and MicroRate, the microfinance institution (MFI) rating agency with offices in the US, Peru and Morocco, signed an agreement on May 12, 2010, creating LUMINIS Microfinance, an MIV information service [1]. LUMINIS is intended to allow investors to make better-informed investment decisions based on a comprehensive database of MIV performance metrics.

by Stefanie Rubin -

MICROCAPITAL BRIEF: Microfinance Invesment Vehicles’ (MIVs’) Total Assets Reach $3.6b in 2009 Despite Decreasing Yields and Stalled Industry Growth

Total assets of the top ten microfinance investment vehicles (MIVs) grew by 23 percent in 2009, reaching USD 3.6 billion, while MIVs’ investments in microfinance institutions (MFIs) grew by only 12 percent, according to a report by CGAP (Consultative Group to Assist the Poor), an independent policy and research center.

by Stefanie Rubin -

MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Invests $11.3m in Mikrofin of Bosnia and Herzegovina

The European Fund for Southeast Europe (EFSE), a microfinance investment fund based in Luxembourg, recently invested USD 11.3 million in Mikrofin, a for-profit microfinance institution (MFI) based in Bosnia and Herzegovina.

by Stefanie Rubin -

MICROCAPITAL BRIEF: Financing Facility for Remittances (FFR) Announces Call for Proposals 2010

The International Fund for Agricultural Development’s (IFAD’s) Financing Facility for Remittances (FFR), a USD 18 million fund that seeks to reduce poverty by leveraging remittances for development in rural areas of developing countries, recently announced its Call for Proposals 2010.

by Stefanie Rubin -

MICROCAPITAL BRIEF: Current and Former CEOs of ACCION International Discuss Role of Microfinance and Capital Markets in Fighting Poverty

In response to the upcoming IPO (initial public offering) of SKS Microfinance, an Indian microfinance institution (MFI) with more than 3.5 million borrowers, Mr Michael Schlein, President and CEO of ACCION International, and Mr Michael Chu, senior lecturer at Harvard Business School and former CEO of ACCION, discuss the role of microfinance and the capital markets in fighting poverty in a Forbes magazine article.

by Stefanie Rubin -

MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases 2009 Benchmarking Report on Eastern Europe and Central Asia in Russian

The nonprofit Microfinance Information Exchange (MIX) recently released the 2009 Eastern Europe and Central Asia Microfinance Analysis and Benchmarking Report in Russian.

by Stefanie Rubin -

MICROCAPITAL BRIEF: German Federal Ministry of Economic Cooperation and Development (BMZ) and German Development Bank KfW Launch $150m Fund for Micro, Small and Medium-Sized Enterprises (MSMEs) in Sub-Saharan Africa

The German Federal Ministry of Economic Cooperation and Development (BMZ) and the German development bank KfW recently launched a regional investment fund for micro, small and medium-sized enterprises (MSMEs) in Sub-Saharan Africa.

by Stefanie Rubin -

MICROCAPITAL BRIEF: Winners of CGAP’s (Consultative Group to Assist the Poor’s) 2009 Microfinance Photography Contest Announced

CGAP (Consultative Group to Assist the Poor), an independent policy and research center, recently announced the winners of its 2009 Microfinance Photography Contest.

by Stefanie Rubin -

MICROCAPITAL BRIEF: MicroSave Releases Podcast on the 2007 Initial Public Offering of Mexican Microfinance Lender Compartamos

MicroSave, a technical assistance, training and technical resource center for microfinance organizations, has released a podcast discussing issues surrounding the controversially lucrative 2007, USD 458 million initial public offering of the Mexican microfinance bank, Compartamos.