Sub-K Impact Solutions, a subsidiary of India-based BASIX Social Enterprise Group, is releasing a digital platform called SARTHI (Seamless Advanced Resourceful Tech-driven Hybrid Interface) to facilitate access to insurance, microloans and investment services. SARTHI will place users in contact with financial services providers
Category: South Asia, East Asia and Pacific
MICROCAPITAL BRIEF: Central Bank of Sri Lanka Plans Mergers of Weaker, Stronger NBFIs; Cutting Number in Half
The Central Bank of Sri Lanka (CBSL) reportedly is working on a plan to merge multiple “ailing” non-banking financial institutions (NBFIs) in the country with “financially stable” firms, given that “nearly half of the sector face[s] severe liquidity issues.” Central Bank Governor W D Lakshman reportedly stated,
MICROCAPITAL BRIEF: SEAF Invests Equity in CloudCfo, Provider of Business Services to SMEs in the Philippines, via Women’s Opportunity Fund
The Small Enterprise Assistance Fund (SEAF), a US-based “impact investing” fund manager, recently announced its disbursement of an undisclosed amount of capital to Philippines-based startup CloudCfo. The firm will use the proceeds to boost its growth across its online accounting, bookkeeping and
MICROCAPITAL BRIEF: Maha Agriculture Borrows $6m from FMO for Digital Microfinance in Myanmar
The Netherlands Development Finance Company, which also is known by its Dutch acronym FMO, recently disbursed a loan of USD 6 million to Myanmar-based microfinance institution (MFI) Maha Agriculture Public Company Limited to be on-lent as microloans in rural Myanmar. The goal of the loan is to support small-scale farmers
MICROCAPITAL BRIEF: State Bank of Pakistan Increases Limits on Microloan Size, Annual Income, Gold Loans to Help Microfinance Institutions, Clients Respond to COVID-19 Pandemic
The State Bank of Pakistan (SBP), that country’s central bank, recently took additional steps to relieve pressure on microborrowers and microbanks caused by the COVID-19 pandemic, including the following: (1) for general-purpose loans, increasing the maximum loan size from PKR 150,000 (USD 900) to PKR 350,000 (USD 2,100), with a loosened annual income cap of PKR 1.2 million (USD 7,000) to qualify; (2) for enterprise and housing loans, increasing the maximum loan size from PKR 1 million (USD 6,000) to PKR 3 million (USD 18,000), with an income cap of PKR 1.5 million (USD 9,000); and (3) increasing to 50 percent the portion of a microbank’s gross loan portfolio that may consist of loans secured by gold.
Additionally, SBP is allowing microborrowers to restructure their loans if they
SPECIAL REPORT: Stakeholders Fearful, But with Tentative Hope Too in e-MFP’s Just-published “COVID-19 Financial Inclusion Compass”
The
European Microfinance Platform (e-MFP) has published the COVID-19 Financial Inclusion Compass, a special edition of the Compass series specifically focused on the current challenges, medium-term priorities, concerns, opportunities and forecasts for a sector facing probably the greatest crisis in its modern history.
The world – the financial inclusion sector included – is in the midst of twin crises: (1) a novel and highly contagious virus with no vaccine or cure that shows no signs of abating; and (2) a genuinely global recession as a result of the unavoidable containment measures put in place. The situation is uncertain and dynamic. Six months from now, the landscape will
MICROCAPITAL BRIEF: Bangladesh Bank Reports Record $2.6b in Remittances During July
The Bangladesh Bank, the country’s central bank, recently reported that Bangladeshis living in other countries sent USD 2.59 billion home during the month of July. This was an increase of USD 760 million over June 2020 and USD 1 billion higher than July 2019. Although some observers expected a fall in remittances due to the COVID-19 pandemic, others cite the following factors as contributing to the increase: requests for aid from Bangladeshis experiencing unemployment and other economic shocks associated with the pandemic;
MICROFINANCE PAPER WRAP-UP: “COVID-19 Crisis Through a Migration Lens,” by Dilip Ratha et al, published by World Bank Group
This paper explores the impact of the COVID-19 pandemic on past and potential future trends in international economic migration and remittances. The first section focuses on the general impact of the pandemic, considering topics such as changes in the earnings of migrant workers, declines in remittance flows and policy responses. The second section delves into the cost of remittances and migration patterns in six regions:
MICROCAPITAL BRIEF: World Bank Approves $750m Loan to Support 1.5m MSMEs in India as Emergency Response to COVID-19
The World Bank’s Board of Directors recently approved a 19-year loan of USD 750 million, with a 5-year grace period, to create an emergency response program for micro-, small and medium-sized enterprises (MSMEs) in India that “have been severely impacted by the COVID-19 crisis.” The program is meant to provide “immediate liquidity” to
MICROFINANCE PAPER WRAP-UP: “The Impact of the COVID-19 Pandemic on Education Financing,” by Samer Al-Samarrai et al, published by the World Bank Group
This paper explores the economic implications of COVID-19 and arguments for mobilizing resources from government and development partners to alleviate educational losses in terms of educational services, student enrollment rates and student achievement. The authors also consider recent policy interventions and proposals in contrast to similar efforts made during past crises. The
MICROCAPITAL BRIEF: ADA, Grameen Crédit Agricole Foundation Respond to COVID-19 with Information Sharing, Funding, Partnerships
Luxembourg-based NGOs ADA (Appui au Développement Autonome) and the Grameen Crédit Agricole (GCA) Foundation have launched a range of resources in response to the COVID-19 pandemic including the following:
MICROCAPITAL BRIEF: Central Bank of Solomon Islands, IFC Developing Comprehensive Credit Reporting System to Boost Financial Inclusion of Individuals, MSMEs
The International Finance Corporation (IFC), a member of the World Bank Group, recently signed an agreement with the Central Bank of Solomon Islands (CBSI) that is intended to improve the country’s “credit reporting legal framework,” promote financial inclusion and protect the credit reputations of borrowers during the COVID-19 pandemic. As part of the effort, CBSI will begin supervising the Solomon Islands Credit & Data Bureau (CDB), and IFC will assist the credit bureau in implementing
MICROCAPITAL BRIEF: Proximity Finance Raises $14m in Equity from Finnfund, Nordic Microfinance Initiative, Proparco to Support Farmers in Myanmar
Proximity Finance, a unit of Myanmar-focused social enterprise Proximity Designs, recently agreed to a package of equity investments totaling USD 14 million in equal shares from three European institutional investors, Proparco (Promotion et Participation pour la Coopération Économique), the Nordic Microfinance Initiative (NMI) and Finnfund. The deal, which is pending regulatory approval, would support Proximity Finance’s services to small-scale, rural farmers in Myanmar, including plans to disburse 1.5 million loans within four years and expand
MICROCAPITAL BRIEF: Development Bank of the Philippines Dropping Plans for New Rural Branches in Favor of Mobile Money, Partnerships with Rural Banks
The Development Bank of the Philippines (DBP), whose board is appointed by the President of the Philippines, reports it is “re-assessing plans for further branch expansion in the mid-term.” Instead, DBP President Emmanuel G Herbosa explains that the bank “views its partnerships with fintech [financial technology] firms, NBFIs [non-bank financial institutions] and potential alliances with progressive rural banks as a means to bridge the so-called ‘last mile’ in
MICROCAPITAL BRIEF: Paytm of India Expands Retailer Network Accepting Digital Payments, Quintuples Consumer Credit Limit in Response to COVID-19 Pandemic
Paytm, an Indian digital payment firm, recently expanded the network of locations that participates in its payment system, which is based on purchasers scanning QR codes with their mobile phones, as well as its service Postpaid, which allows users to delay paying for these purchases by one month. Paytm’s expansion focused on neighborhood shops known as kiranas, which sell groceries and home essentials, and other
MICROCAPITAL BRIEF: Nordic Microfinance Initiative Raises $5m from Lauritzen Fonden to Invest in Women in Africa, Asia
Denmark-based Lauritzen Fonden recently invested USD 5 million in “Fund IV” of the Nordic Microfinance Initiative (NMI), a Norway-based public-private partnership that invests in microfinance institutions and agricultural initiatives in developing countries. The new investment is specific to microfinance, mainly for women in Africa and Asia.
Lauritzen describes itself as a “commercial foundation.” It earns income from shipping concerns and investments in real estate, technology, software and equipment and then disburses approximately DKK 40 million (USD 6 million) per year to support youth and
MICROCAPITAL BRIEF: Via Atlas, CGAP Begins Releasing Results from Biweekly “Pulse” Survey of Microfinance Institutions (MFIs) on COVID-19 Impact
In an effort to understand the needs of microfinance institutions (MFIs) and their clients during the COVID-19 pandemic, the US-based NGO CGAP (Consultative Group to Assist the Poor) recently launched a biweekly survey called the “Global Pulse Survey of Microfinance Institutions.” CGAP is releasing the results on the Atlas data platform, which is a service of Italy-based MFR (MicroFinanza Rating), in the form of 13 charts. These charts can be manipulated to group the data by
MICROCAPITAL BRIEF: Incofin Loans $1.1m to SAVE, Provider of Rural Microfinance, Agent Banking, Toll-road Payment Services in India
Belgium-based Incofin Investment Management (IM) recently disbursed a senior loan of EUR 1 million (USD 1.1 million) from its fund Incofin CVSO to the Society for Advancement of Village Economy (SAVE), which “plans to utilise the…funding to support its two non-banking financial companies providing rural credit services” in India. SAVE’s other units offer