by the MicroCapital Team -

MICROCAPITAL BRIEF: Buying Maritime Microfinance, Fintech Lender Payhippo Gains Deposit License, Access to Nigeria Inter-Bank Settlement System

Payhippo, a financial technology (fintech) lender to small and medium-sized enterprises (SMEs) in Nigeria, recently agreed to pay an undisclosed sum to acquire Maritime Microfinance Bank. Maritime was founded in 2014 and provides in-person loans and savings services to enterprises in Nigeria that have zero to 500 employees, mainly in the shipping and

by the MicroCapital Team -

MICROCAPITAL BRIEF: Visa Foundation Donates $2m to Opportunity International to Support Microfinance, Small-business Lending to Women in Africa

US-based nonprofit microfinance network Opportunity International recently secured a grant of USD 2 million from the Visa Foundation, an affiliate of US-based payments firm Visa. The goal is to facilitate Opportunity in routing an additional USD 14 million via its affiliated financial services providers (FSPs) in Democratic Republic of the Congo, Ghana, Nigeria and Uganda to micro- and small businesses owned by women. The two-year grant is to fund services for: (1) business owners and farmers, such as training in financial literacy, business management and agricultural practices; and (2) partner FSPs, such as technical assistance in developing gender-oriented policies and financial incentives for serving women, such as guarantees, interest-rate buy-downs and collateral buy-downs. A collateral buy-down – where an FSP might

by the MicroCapital Team -

MICROCAPITAL BRIEF: In Pakistan, Microfinance Portfolios Rise 7.5% Quarterly to $2b

According to data attributed to the Pakistan Microfinance Network, microfinance providers in the country grew the number of savers they serve by 2.9 percent to 87 million from March 2022 to June 2022. During that period, however, the aggregate amount saved by those customers fell 8.9 percent to PKR 391 billion (USD 1.8 billion).

Meanwhile, microlending in Pakistan is growing unambiguously, and it is expected to continue its upward trend as new regulations recently

by the MicroCapital Team -

MICROCAPITAL BRIEF: Kiva Refugee Investment Fund Lending $1.5m to FINCA Guatemala to Support Returning Migrants

FINCA Guatemala, whose name derives from that of the US-based Foundation for International Community Assistance (FINCA International), recently agreed to borrow USD 1.5 million over two years from the Kiva Refugee Investment Fund, which is managed by Kiva Capital, a unit of the US-based NGO Kiva. The goal is to expand lending to “Guatemalan migrants returning

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “The Business Case for Linkage With Informal Savings;” by Constantin Albot, Stephen Peachey; Published by MasterCard Foundation, Oxford Policy Management

This report describes Savings at the Frontier (SatF), a partnership between Canadian NGO MasterCard Foundation and UK-based consultancy Oxford Policy Management, that provided USD 17.6 million in technical assistance and direct funding to establish relationships between formal financial service providers (FSPs) and informal savings mechanisms (ISMs). The program ran from 2015 to 2022, engaging 10 FSPs in

by Benjamin Greissman -

MICROCAPITAL BRIEF: ADEL, CGF Bourse, UNCDF Announce First Disbursement from Fonds d’Investissement Territorial (FIT), Harnessing Diaspora to Invest in SMEs in Senegal

Two Senegalese investment firms, Alliance Diaspora Economies Locales (ADEL) and CGF Bourse, have partnered with the UN Capital Development Fund (UNCDF) to create an investment fund intended to generate both profits and social returns. The fund, Fonds d’Investissement Territorial (FIT), is enlisting

by Benjamin Greissman -

MICROCAPITAL BRIEF: Aman for Microfinance Targets Unbanked in Egypt via Youm-B-Youm Savings Fund, Target Return Is 8%

Aman for Microfinance, a member of the Egypt-based Aman Group, in partnership with the asset management unit of Egypt’s Prime Holding, recently announced an investment fund called Aman Youm-B-Youm, whose name can be translated as Aman Day-by-Day. Aman for Microfinance anticipates the fund will generate returns of

by Benjamin Greissman -

MICROCAPITAL BRIEF: MicroVest Loans $5m to Banco Delta to Boost Post-COVID Economy in Panama via Financial Access for MSMEs 

MicroVest, an asset-management subsidiary of US-based Development Alternatives Incorporated (DAI), recently invested USD 5 million to Panama-based Banco Delta. The loan is meant to

by the MicroCapital Team -

MICROCAPITAL BRIEF: 60 Decibels Microfinance Index Offers Impact Data from 18k Customers of 72 MFIs

Impact-measurement firm 60 Decibels recently released data it has assembled from 18,000 clients of 72 microfinance institutions (MFIs) that serve 25 million people in 41 countries. The report is based on a survey exploring changes in factors such as income, stress level, number of employees and ease of affording loan repayments, as well as levels of
by Arin Atluri -

MICROFINANCE PAPER WRAP-UP: “Measuring Fees and Transparency in Nigeria’s Digital Financial Services,” by William Blackmon and Brian Mwesigwa, Published by Innovations for Poverty Action

Digital financial services have evolved greatly in Nigeria over the last decade, but many people in the country still struggle to access formal financial services. This study explores three issues discouraging

by Zach Deluca -

MICROFINANCE PAPER WRAP-UP: “Market Opportunities for Women’s Savings: Evidence From India,” Published by Women’s World Banking (WWB)

Approximately 80 percent of people in India over the age of 15 own a bank account, however only 34 percent of adults – and just 30 percent of women – saved money in the year leading up to this study. The authors surveyed 2,000 women in the states of

by the MicroCapital Team -

MICROCAPITAL BRIEF: Microserfin to Boost Farm Microinsurance, Microloans in Panama with $2.3m in Debt Finance from Huruma Fund

Microserfin, a lender to homeowners as well as micro-, small and medium-sized enterprises (MSMEs) in Panama, recently borrowed EUR 2 million (USD 2.3 million) from Huruma Fund, a Spain-based public-private partnership supporting rural finance in low- and moderate-income countries. Microserfin, which is controlled by the Spain-based Fundación BBVA Microfinanzas, serves 14,000 clients with financial products; financial education; and access to a 24-hour hotline for assistance with health, legal, agricultural and veterinary emergencies. The microlender’s upcoming plans include

by Zach Deluca -

MICROFINANCE PAPER WRAP-UP: “Better Practice Guidance on Women’s Digital Financial Capability,” Published by Center for Financial Inclusion at Accion

This paper addresses methods for increasing women’s “ability to access, manage, understand, integrate, evaluate and use financial services offered through digital technologies.” The digitalization of financial services and products is becoming increasingly prevalent, including in parts of the world that are underserved by traditional banks. Investing in building women’s digital financial capability can play a significant role in

by Zach Deluca -

MICROCAPITAL BRIEF: Reltime to Launch “Decentralized Banking Ecosystem” Allowing P2P Loans, Fee-free Transfers Across Eurasia, Latin America

Reltime, a Norway-based firm founded in 2018, recently told MicroCapital it will launch a “decentralized banking ecosystem” allowing anyone with a smartphone and internet access to engage in

by Zach Deluca -

MICROCAPITAL BRIEF: Aden Bank for Microfinance to Target MSMEs, Women, Youth in Yemen

Based on the authorization it received in October 2021 from the Central Bank of Yemen, Aden Bank for Microfinance is moving forward with plans to offer financial services in the country. Aden Bank is arranging partnerships with local

by Zach Deluca -

MICROFINANCE PAPER WRAP-UP: “The Power of Jan Dhan: Making Finance Work for Women in India,” Published by Women’s World Banking

This paper concerns a pilot savings program for women that was designed as an add-on to the Indian government’s Pradhan Mantri Jan Dhan Yojana (Jan Dhan) scheme, which allows any previously unbanked person to open a savings account at any bank in the country. Jan Dhan accounts have no minimum deposits or balances to maintain, and the customer earns interest on his or her savings. Jan Dhan was launched in 2014, and it has been credited in the rise in percentage of women with access to financial services from 26 percent in 2011 to 77 percent in 2017. One of the successes of Jan Dhan is its reach to illiterate customers due its minimal paperwork requirements.

The pilot program was to offer “Jan Dhan Plus” accounts in an effort to encourage more women to save. The new accounts offer users a credit facility of INR 10,000 (USD 134) if they