The government of Zimbabwe recently liberalized its Microfinance Act with provisions such as extending the validity of microfinance institution (MFI) license renewals from one to three years. Zimbabwe’s Finance Minister, Patrick Chinamasa, was quoted as saying financial institution “charges are just too high. With MFIs, it mostly has to do with the fact that investment in the sector is just too low, so companies just end up passing their costs to clients…. Zimbabwe seeks to unlock economic opportunities, especially for the women and youths by expanding access to savings,
Category: Regulation
SPECIAL REPORT: Accelerating Financial Inclusion in the Mekong through Collaboration
At
the 2016 Mekong Financial Inclusion Forum, MFIs and funders led this session’s discussion of collaboration. Kelly Hattel, Financial Sector Specialist for the Asian Development Bank, underscored “the importance of having national strategies for financial inclusion and having them be evidence-based. These are important…both as a donor individually and for
MICROCAPITAL BRIEF: Jordan Launches Financial Inclusion Strategy for 2018 – 2020
The Central Bank of Jordan recently announced a strategy to increase financial inclusion in the country during the years 2018 through 2020. The document calls for increased financial education, client protection and
MICROFINANCE EVENT: Asia-Pacific Financial Inclusion Summit, Hanoi, Vietnam, March 21-22, 2017
Event Name: Asia-Pacific Financial Inclusion Summit
Event Date: March 21-22, 2017; optional field visits on March 23, 2017
Event Location: JW Marriott Hotel, Hanoi, Vietnam
Event Summary: Themed “Advancing Financial Inclusion in a Digital Age,” this event will include plenaries on topics such as collaboration and regulating digital financial services. Breakout sessions will address topics such as blockchain technology, gender, serving youth and reaching “the last mile.” On March 23, participants may visit with staff and clients of either Tinh Thuong Microfinance Institution or
SPECIAL REPORT: Policy and Regulation in the Mekong: Developing Strategic Frameworks for Financial Inclusion
The assembled regulators and trade group leaders offered a litany of current and soon-to-be-released strategies to create a nurturing environment for pro-client financial services. It is critically important to
MICROFINANCE PUBLICATION ROUND-UP: How the Private Sector Can Boost Economic Growth in Sub-Saharan Africa; the Role of Impact Investing in Achieving SDGs in Africa; Documenting Reforms to “Doing Business”
Entreprenante Afrique; by Jean-Michel Severino and Jérémy Hajdenberg; published in French by Odile Jacob; September 2016; 288 pages; available for purchase at: https://play.google.com/store/books/details?id=_vslDQAAQBAJ&rdid=book-_vslDQAAQBAJ&rdot=1&source=gbs_vpt_buy&pcampaignid=books_booksearch_atb
Jean-Michel Severino and Jérémy Hajdenberg argue that the 5-percent average annual growth rate Sub-Saharan Africa has experienced since 2000 is being driven significantly by the region’s small and medium-sized enterprises (SMEs).
SPECIAL REPORT: Evolving Regulations Obscure the Future of Microfinance in Myanmar
Paul 
Luchtenburg, who serves as coordinator for the UN Capital Development Fund in Myanmar, described several of the contrasts in the microfinance industry in Myanmar at European Microfinance Week Thursday. Five years into civilian rule, Mr Luchtenburg says “I’ve never seen a government work so hard. You go to a meeting and the results go up the leadership chain that night…. There’s this rapid push for development.” To accept deposits, institutions must pay at least 10 percent per year and be deemed “sustainable” by the government. However, lending rates are capped at 2.5 percent per month, a level that all of the panelists agreed was too low, especially for serving rural areas. Rommel Caringal, the CEO of the local unit of US-based VisionFund, said, “The inconsistency is causing big problems, but
MICROCAPITAL BRIEF: Kenyan Government Caps Bank Lending Rates, Sets Minimum Deposit Rates
The government of Kenya recently passed legislation to cap the interest rates on bank loans at 4 percent per year above an undisclosed benchmark reference rate and also set the minimum deposit interest rate at 70 percent of the reference rate.
MICROCAPITAL BRIEF: Microfinance Institutions in Pakistan to be Registered as Non-Banking Financial Companies, Regulated by Securities and Exchange Commission
The Securities and Exchange Commission of Pakistan (SECP) recently announced plans to bring all non-deposit taking microfinance institutions (MFIs) and related nongovernmental organizations (NGOs) under the non-banking finance company (NBFC) framework in an effort to improve the regulation and monitoring of their activities.
MICROFINANCE PAPER WRAP-UP: 2016 Brookings Financial and Digital Inclusion Project Report; by John Villasenor, Darrell West, Robin Lewis
“The 2016 Brookings Financial and Digital Inclusion Project Report Advancing Equitable Financial Ecosystems;” by John D. Villasenor, Darrell M. West and Robin J. Lewis; published by the Center for Technology Innovation at the Brookings Institution; August 2016; 146 pages;
MICROFINANCE EVENT: European Microfinance Platform (e-MFP) to Host European Microfinance Week, November 16-18, 2016, Luxembourg
Event Name: European Microfinance Week 2016
Event Date: November 16 – November 18, 2016
Event Location: Neimënster, 28 Rue Münster, L-2160 Luxembourg
MICROFINANCE EVENT: Global Symposium on Innovative Financial Inclusion, September 21-22, 2016, Kuala Lumpur, Malaysia
Event Name: Global Symposium on Innovative Financial Inclusion: “Harnessing Innovation for Inclusive Finance”
Event Date: September 21 – September 22, 2016
Event Location: Sasana Kijang, Number 2, Jalan Dato’ Onn, 50480, Kuala Lumpur, Malaysia
MICROFINANCE EVENT: Global SME Finance Forum 2016, September 19-21, 2016, Beijing, China
Event Name: Global SME Finance Forum 2016
Event Date: September 19-21, 2016
Event Location: Shangri La – China World Hotel, 1 Jianguomenwai Avenue, Beijing, 100004, China
MICROCAPITAL BRIEF: Uganda Development Bank to Issue “Small” Loans to Agricultural Businesses, Ugandan Regulators to Boost Enforcement of SACCO Regulations
The Finance Minister of Uganda, Matia Kasaija, recently announced plans to recapitalize the Uganda Development Bank (UDB), a public enterprise owned by the government of Uganda, with UGX 500 billion (USD 148 million).
MICROCAPITAL BRIEF: Philippine Government Institutionalizes Steering Committee to Oversee National Strategy for Financial Inclusion
The Philippine government recently issued an executive order institutionalizing a Financial Inclusion Steering Committee (FISC) to oversee implementation of the country’s National Strategy for Financial Inclusion (NSFI), which was launched in July 2015 to “raise awareness, appreciation and understanding of financial inclusion and enable coordination among various stakeholders.”
MICROFINANCE EVENT: Sa-Dhan Association to Host National Conference, September 14-15, 2016, New Delhi, India
Event Name: Sa-Dhan National Conference 2016: “Financial Inclusion on Path to Sustainable Development Goals”
Event Date: September 14-15, 2016
Event Location: India Habitat Centre, Lodhi Road, New Delhi, India 110003
MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Releases Categorization System for “Non-interest Islamic Microfinance Banks”
The Central Bank of Nigeria (CBN), the country’s central banking authority, recently released a new categorization system for “Non-Interest Islamic Microfinance Banks” (NIMFBs). Such institutions operate under Islamic principles that prohibit charging interest, instead using arrangements such as the sharing of profit and loss.
MICROCAPITAL BRIEF: Tanzania Launches Mobile Money Monitoring (M3) Platform, Regulates Mobile Money Transactions
The Tanzania Communications Regulatory Authority (TCRA) recently launched a Mobile Money Monitoring (M3) platform, a technology-enabled tool that monitors mobile money services in Tanzania.