by the MicroCapital Team -

SPECIAL REPORT: Positioning MFIs to Access Climate Finance – An Interview with Kwashie Agbitor of Accion

A seat next to Kwashie Agbitor (pictured below) was one of the most highly sought-after spots at SAM 2023 in Togo in October. Mr Agbitor has 20 years of experience in Africa and Asia, improving branch oper­ations, credit appraisals, risk management, methodology auditing, prod­uct development, client protection and social performance management.

At SAM 2023, Mr Agbitor moderated a discussion titled “Climate funds, an opportunity for financial in­stitutions to scale up sustainable and inclusive financing.” The panelists rep­resented the Tunisian microfinance insti­tution (MFI) Enda Tamweel, the Belgian im­pact investment firm Incofin, the Ken­yan microlender Juhudi Kilimo and the French impact investor Solidarité Inter­nationale pour le Développement et l’Investissement (SIDI).

Bob Summers: How can financial services providers (FSPs) work with climate funds to expand their green lending portfolios?
Kwashie Agbitor: There are numerous opportunities for financial institutions to build their green portfolios with climate funds. Financial institutions can leverage equity, debt and quasi-equity sources of funding from various types of organiza­tions. Climate funds can be used to devel­op and deploy financial services that support the adoption of green products/solutions and help people recover from climate-re­lated shocks. Given their nature, most climate funders also pro­vide technical support/assistance in addition to funding.

BS: What factors influence whether a climate fund would invest in a particular MFI?
KA: Firstly, the MFI and the investor must

by the MicroCapital Team -

SPECIAL REPORT: Leveraging Carbon Credits to Insure MSMEs in Climate-vulnerable Nations #SAM2023

What a pleasure it was to interview Diana Chepng’eno (pictured below) at SAM 2023 in Togo last month! She is such a warm and energetic person – and deeply engaged in the critical work of climate adaptation and miti­gation across Africa and the Middle East.

During SAM 2023, Ms Chepng’eno spoke at the opening plenary ses­sion “Making Africa’s Future Sustainable – Climate, Socio-economic Develop­ment and Inclusive Finance” as well as a breakout session titled “Helping Financial Institutions Deal with Cli­mate Change – Assessing Risks and Strengthening Institutional Resili­ence.”

Bob Summers: What are you working on with the V20 group of climate-vulnerable nations (which now comprises 68 low- and middle-income countries)?
Diana Chepng’eno: Sitting within the UN Environment Programme Finance Initia­tive, under the Princi­ples for Sustainable Insurance, we are ramping up a Sustain­able Insurance Facility. We launched the facility in 2022 to advocate for the import­ance of insurance for micro-, small and medium-sized enterprises (MSMEs) in V20 countries as a significant driver for miti­gating climate change risks. MSMEs, for example, comprise about 75 percent of the total GDP of the V20. Therefore, if we can support these MSMEs by fa­cili­tating access to much-needed insurance, so that they may become more climate resilient, then these entire countries can be climate-resilient.

BS: What mechanisms does the facility use?
DC: The work is all based on partnerships. Insurers are critical, of course. We also need firms that

by the MicroCapital Team -

MICROFINANCE EVENT: SAM (Semaine Africaine de la Microfinance); October 16-20, 2023; Lomé, Togo

Themed “Inclusive and Sustainable Finance: How to Reconcile the Challenges of Socio-economic Inclusion and the Transition to a Resilient and Ecological Economy,” this sixth edition of SAM (Semaine Africaine de la Microfinance, French for African Microfinance Week) includes two days each of conference sessions, an Investor Fair and an “Innovator’s Village,” along with a gala dinner and about 20 associated events on topics such as “agricultural finance, digital finance, microinsurance and social performance.”

The conference portion of the week includes sessions titled: (1) Carbon Markets and Environmental Service Payments: New Opportunities for Local Communities; (2) Beyond Taxonomies: the Role of

by the MicroCapital Team -

SPECIAL REPORT: Save the Date for SAM 2023 – African Microfinance Week – in Togo, October 16-20!

Registration is due to open within days for SAM 2023 – Semaine Africaine de la Microfinance – which will include a multi-day conference, a gala dinner, an Innovators’ Village and a two-day Investor Fair. The second day of the Investor Fair is new, reflecting the fact that small and medium-sized enterprises (SMEs) will

by the MicroCapital Team -

SPECIAL REPORT: Inclusive Finance in Africa Amid the Current Food and Climate Crises, in Anticipation of SAM 2023 in West Africa

In anticipation of SAM 2023 (Semaine Afri­caine de la Microfinance 2023), its organisers convened a panel discus­sion on October 19 as part of Accion’s Financial Inclusion Week. The panel illustrates the commitment of SAM’s organisers to nurture on­going dia­logue on the issues faced by the inclusive finance sector. The objective was to share and question the strategies being used to address issues faced by the agricultural sector, which remains one of the least financed due to investors’ per­ception of it as high-risk.

Climate change coupled with social and political turmoil is negatively impacting agricultural value chains in particular and global food security in general. The conflict between Ukraine and Russia is lowering food security and agricultural pro­duction in many developing countries, as the warring nations are two of the largest exporters of key agricultural commodities such as wheat, corn, sunflower oil and fertiliser. The Horn of Africa could suffer the worst effects of the war because of its ongoing food crisis following three years of severe drought, the COVID-19 pan­demic and protracted local conflicts. Market volatility and rises in energy costs, input costs, interest rates and perceived risk are expected to lead to higher costs of borrow­ing, credit crunches, and unmet working capital and liquidity needs.

Addressing these issues at the Financial Inclusion Week panel were:

– Jacques Afetor, Executive Director of Assilassimé Solidarité, a Togolese MFI supporting

by the MicroCapital Team -

SPECIAL REPORT: SAM (the French Acronym for African Microfinance Week) in Progress in Rwanda Until October 22, 2021

Get an overview of the five-day SAM from the ADA press release or follow the proceedings on our Twitter feed!

This feature is part of a sponsored series on the SAM 2021, which is organized by the Luxembourgish NGO ADA, the Microfinance African Institutions Network (MAIN), the African Rural and Agricultural Credit Association (AFRACA) and the Association of Microfinance Institutions in Rwanda (AMIR), with the support of the Directorate for Development Cooperation and Humanitarian Affairs of Luxembourg and the Government of Rwanda. The event is taking place from October 18 to October 22 in Kigali, Rwanda. MicroCapital has been engaged to promote and document each of the SAMs since 2015.

by the MicroCapital Team -

SPECIAL REPORT: SIDI Credits the SAM Investors’ Fair with Seeding Partnerships with Emerging MFIs in Burundi, Ethiopia, Mozambique

During the SAM (Semaine Africaine de la Microfinance – African Micro­­finance Week in French) in October, the 2021 Investors’ Fair will build on the 2019 Investors’ Fair, during which 120 microfinance institu­tions (MFIs) and 24 investors met in over 500 “speed-dating” sessions to explore whether they might be compatible partners. Of the MFIs, which represented 24 countries, about half were for-profit firms, and about half were organized as cooperatives or NGOs.

At the 2019 event, Altemius Millinga, the Managing Director of Tanzania’s Yetu Microfinance Bank, told MicroCapital that the Investors’ Fair “was the best part of the SAM because I was able to interact with investors, while at the same time sharing experiences immediately with other MFIs. The SAM gave me the opportunity to meet investors and make several preliminary proposals on funding; it was surely worth the investment!”

FEFISOL, an Africa-focused fund launched by SIDI, has had a presence at all four of the SAM Investors’ Fairs to date, and its repre­sentatives will return this year. The CEO of SIDI, Dominique Lesaffre, reports that his institution has leveraged the Investors’ Fair not only to develop relation­ships with “successful institutions such as Centenary Bank in Uganda or Kafo Jiguinew in Mali – with their massive social-financial outreach – but also with emerging MFIs such as Microbanco Confiança of Mozam­bique, Ishaka of Burundi and Buusaa Gonofaa of Ethiopia.”

Edmund Higenbottam, the Managing Director of Verdant Capital, also

by the MicroCapital Team -

SPECIAL REPORT: The SAM Innovators’ Village – What About the 2019 Iteration Convinced So Many to Return for the SAM 2021 Coming Up in October in Rwanda?

The SAM (Semaine Africaine de la Microfinance – African Micro­finance Week in French) is a major five-day gathering dedicated to inclusive finance in Africa. Since the first SAM in 2013, the SAM has consistently offered a true ecosystem of events, including a two-day confer­ence that this year will deeply explore the resilience of the sector and the popula­tions it serves, thanks to the participation of a range of high-level speakers and panelists. Before and after the con­ference, par­tici­pants will meet new partners and learn new skills at the Investors’ Fair, the Innovators’ Village and a wide assortment of free training sessions and workshops.

The Innovators’ Village is a key element of the SAM, showcasing innovative solutions that strengthen the resilience of indiv­iduals and organisations in the inclusive finance sector. It is also a meeting place, creating opportunities for synergies among a myriad of actors in the sector. At the Innovators’ Village, you’ll find a range of organisa­tions that can strengthen the resilience to shocks of African institutions and populations through concrete tools, methodolo­gies, products and ser­vices. Exhibitors will meet new potential customers and investors to develop their businesses, as well as partners for new projects. Practi­tioners likewise will identify innovative solutions that meet their needs and find potential partners and investors. Funders can identify innova­tive solutions with high potential for both social and financial returns.

Probably the most effective way to understand the value of the Inno­vators’ Village is through the words of leaders who have participated as exhibitors in the past and will return for this next edition of the SAM, which will take place in Kigali, Rwanda, from October 18 to 22, 2021.

Jarek Chuchla, Microfact Coordinator: Every single edition of the SAM is a

by Divya Deshmukh -

MICROFINANCE EVENT: The SAM (Semaine Africaine de la Microfinance); October 18-22, 2021; Kigali, Rwanda

This year’s SAM (Semaine Africaine de la Microfinance) includes five days of conference sessions, an investors’ fair, an “Innovators’ Village,” research presentations, training sessions and workshops under the theme “Resilience of the African Inclusive Finance Sector.” The two-day conference portion of SAM includes sessions on topics such as how the COVID-19 pandemic has affected efforts to meet the UN Sustainable Development Goals, financing agricultural value chains, risk management, serving youth, digital infrastructure and post-crisis reconstruction. The other days of SAM include workshops on topics such as social performance,

by the MicroCapital Team -

SPECIAL REPORT: Building Resilience for Microfinance Clients – the SAM 2021 Conference in Kigali, Rwanda, October 18-22

MicroCapital: How will the theme resilience be addressed during the SAM 2021?

Yombo Odanou: The EU has defined resilience as “the capacity of an individual, household, community, country or region to resist, adapt and recover quickly from crises and shocks.” The dual climate and COVID-19 crises and their effects on the global economy are forcing institutions to find new ways to take advantage of this austere environment.

Christophe Hebting: We believe the discussions at the SAM can build the resilience capacity of all actors in the inclusive finance sector. This includes addressing questions such as: How can resilience be increased through structural change? In the face of climate change? Through technological innovations?

MC: How are you addressing concerns attendees may have regarding the potential transmission of COVID-19 during the event?

YO: Since the beginning of this pandemic, MAIN has initiated actions to enable its members to minimise the risk of infection, allowing them to continue

by the MicroCapital Team -

SPECIAL REPORT: SAM 2021 to Take Place in Kigali, Rwanda, October 18-22; “One Is Not Born Resilient But Becomes Resilient: Fostering Inclusive Finance to Better Overcome Crisis!”

From ADA: It’s official! The largest event in inclusive finance on the African continent, the long awaited African Microfinance Week (AMW 2021), will take place in Kigali, in the land of 1,000 hills and mountains: Rwanda. From October 18 to October 22, 2021, the SAM will address the theme of resilience, a concern that is all the more important in these particular times.

This notice is the first in a

by the MicroCapital Team -

MEDIA OF THE MONTH: Video Summary of SAM 2019, also Known as African Microfinance Week, in Burkina Faso

This five-minute video gives you a taste of what happened when 900 participants from 50 countries met for the 2019 SAM conference in Ouagadougou.

This post is part of a monthly series from MicroCapital pointing you to great media on microfinance and other forms of impact investing. Enjoy!

MicroCapital coverage of the last three SAM conferences, including vignettes demonstrating its value to participants, appears at http://www.microcapital.org/category/semaine-africaine-de-la-microfinance-sam/.

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.

by the MicroCapital Team -

SPECIAL REPORT: Harnessing Digital Finance, Protecting Consumers at the UNCDF/SAM Night for Digital and Inclusive Finance

During SAM 2019the recent UNCDF/SAM Night for Digital and Inclusive Finance, UN eTrade for Women Advocate Patricia Zoundi-Yao discussed the importance of agriculture to Burkina Faso as well as West Africa in general. She noted that 80 percent of the fruits and vegetables cultivated in the region are grown by women. She argued that these farmers need support to minimize pesticide use and reduce the clearing of forests. For example, Ms Zoundi-Yao suggests that governments guarantee the purchase of farmers’ crops. Regarding digital financial services, she proclaimed, “No one is to be left behind by this revolution!”

Hermann Messan of the UN Capital Development Fund (UNCDF) explained how internet access can help farmers learn about agricultural best practices, check the weather to time their application of fertilizer, apply for loans and insurance, check crop prices, and purchase running time for

by the MicroCapital Team -

SPECIAL REPORT: Solar Kits for Reselling Power, Internet Access; Staff Training by Subscription; Free Business Planning Software on Offer as 30 Firms Showcase Inclusive Finance Products at SAM Innovators’ Village (Part Two)

Thirty SAM 2019organizations shared their latest products during the Innovators’ Village at the SAM conference held recently in Burkina Faso. Among these was Qotto, a provider of kits that bring solar power and internet to off-grid households. The kits include battery packs and can be used to run appliances such as lamps, televisions and telephone chargers. The system includes an app for tracking usage and allowing Qotto and the owner to share revenue from selling phone recharges or wireless internet access to neighbors.

Eclectics International offers a core banking system for financial services providers (FSPs) that was designed “by Africans for the African market.” Its features allow for loan disbursal via mobile money, as well as integration with

by the MicroCapital Team -

SPECIAL REPORT: Credit Scoring Methods, Data for Farmers, Digital Financial Services on Offer as 30 Firms Showcase Inclusive Finance Products at SAM Innovators’ Village (Part One)

Dozens SAM 2019of firms presented their newest technologies and other products during the full-day Innovators’ Village of the recent SAM conference. Among these was ICCO Cooperation, whose representatives described their organization’s ACAT tool for evaluating the creditworthiness of agricultural producers. ACAT, which was designed in partnership with the French bank Crédit Agricole, offers features to help loan officers who do not specialize in agriculture to evaluate producers’ operations. The tool calculates the input needs per hectare for crops such as sesame as well as predicting farmers’ income. While the pilot phase has gone well, there have been a few challenges, such as poor internet connectivity and difficulty calculating the sizes of the farmers’ plots due to deficient land surveys.

Mohamed Asri of HPS (Hightech Payment Systems) discussed his firm’s PowerCard core banking system, which allows the “client to act as an agent.” The

by the MicroCapital Team -

SPECIAL REPORT: Partnerships, Patience, Sizing Goals for Hummingbirds to Meet SDGs Via Financial Inclusion, Complimentary Services

“We SAM 2019need to develop services with added value to increase impact,” said Corinne Molitor of ADA during the first Wednesday plenary session at SAM. In the absence of non-financial services, financial inclusion does not lead directly to reduced poverty. To find evidence of poverty alleviation, she says, we must consider the long term because reducing poverty is a very slow process. Mathieu Ciowela of the UN Development Program said of the Sustainable Development Goals (SDGs) that, “We have been implementing this for four years. Maybe in 10 years we’ll have data on progress.”

Adrian Kamenitzer of the European Investment Bank also spoke in terms of decades rather than years. He told a personal story of growing up in Romania and observing the transition from communism. “In 1990, we had a new regime. We had hopes,

by the MicroCapital Team -

SPECIAL REPORT: Diffusing Excuses for Failing to Measure Microfinance Institutions’ Social Performance

Amelia SAM 2019Greenberg of the Social Performance Task Force (SPTF), at a SAM session on measuring social impact, reviewed some of the excuses microfinance institution leaders use to postpone measuring client outcomes. Some say satisfaction surveys are sufficient, or they feel a robust process will be too expensive. Some worry that it is unreasonable to claim a cause-effect relationship between their institution’s financial services and changes in clients’ lives.

Colin Rice of South Africa’s Small Enterprise Foundation (SEF) argued that it is valuable to start by measuring just a few parameters that the organization is already tracking. Monitoring the amount that clients save over time is a prime example. It is easy to

by the MicroCapital Team -

SPECIAL REPORT: Fostering Economic Resilience in the Face of Climate Change with Microinsurance, Savings, Investments in Agriculture

Dan SAM 2019Zook of ISF Advisors opened the SAM session on “Fostering Economic Resilience in the Face of Climate Change” arguing that smallholder farmers are the “number one most vulnerable in the world to climate change…so it’s important that we talk about adaptation financing.” A survey by CGAP segments the needs of farmers as follows: (1) subsistence farmers are the poorest and most vulnerable; they need savings and insurance; (2) commercial farmers that sell cash crops can benefit from investments such as drip irrigation; and (3) larger-scale farmers need to think about adaptation as well as how to reduce their own environmental impact. Although agriculture is the source of a quarter of greenhouse gas emissions worldwide, Mr Zook said, smallholders have minimal environmental impact, except in the case of those raising a few particularly resource-intensive crops.

Yann Groeger of BlueOrchard cited his firm’s InsuResilience Investment Fund, which works with insurers to