by Renata Samadova -

MICROFINANCE EVENT: Global Impact Investing Network (GIIN) Investor Forum; October 12-13, 2022; the Hague, the Netherlands

The goal of this event is to connect the various elements of “the impact ecosystem” to expand the impact investing market, thus boosting efforts to create “positive, measurable social and environmental impact” alongside financial returns. The agenda includes sessions

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “Banking in Layers: Five Cases to Illustrate How the Market Structure for Financial Services is Evolving;” by Aiaze Mitha, Faith Biegon, Peter Zetterli; Published by CGAP

This paper cites several financial service providers (FSPs) in emerging markets in exploring how recent advancements in digital technology have enabled new business models, transforming the market for financial services. The authors argue that these FSPs have deconstructed the financial services market into separate modules, allowing these modules to be reassembled in innovative ways. These modules include:

by the MicroCapital Team -

SPECIAL REPORT: Bancamía of Colombia, Banco FIE of Bolivia, Kashf Foundation of Pakistan Shortlisted for $100k European Microfinance Award on Financial Inclusion for Women

European Microfinance PlatformFrom the European Microfinance Platform (e-MFP): On the 21st and 22nd September 2022, the Selection Committee for the European Microfinance Award 2022 (EMA 2022) on “Financial Inclusion that Works for Women” chose the three finalists that will go on to compete for the EUR 100,000 (USD 100,000) prize: Bancamía from Colombia; Banco FIE from Bolivia; and Kashf Foundation from Pakistan.

For decades, financial inclusion has ostensibly been about women’s empowerment and autonomy. But too often the sector has paid only lip-service to what this means, focusing merely on

by Renata Samadova -

MICROFINANCE EVENT: MEDA Convention: Celebrating Entrepreneurship; November 2-6, 2022; Lancaster, Pennsylvania, USA

With the aim of advancing the success of entrepreneurs, this event offers plenary sessions such as: (1) Revolutionizing Investment in Sub-Saharan Africa: Bridging the Finance Gap for Women Entrepreneurs; and (2) Food Security: Addressing the Risks in Our Global Food Systems and What It Means for Entrepreneurs. On November 5, the MEDAx Pitch Competition offers prizes

by Nithin Naren -

MICROCAPITAL BRIEF: Committee in Bangladesh Considering Cutting Microcredit Interest Rate Cap Below 24%

The Bangladeshi government recently convened a committee to “analyze cost of the MFIs’ [microfinance institutions’] services and to determine if there is any scope to reduce the charges” with a nationwide cap. The committee, which includes 11 representatives of government, industry and observers, is headed by

by the MicroCapital Team -

SPECIAL REPORT: Joy Ogutu of Agents for Impact on Impact Investing in Africa

How best to invest in Africa? What makes this region attractive to investors? This month, we introduce you to Joy Ogutu (pictured), an Africa-based Investment Officer at Agents for Impact (AFI), an impact investment company based in Ger­many. As an expert in sustainable invest­ments and impact in Africa, Joy offers us keen insight into these and other questions on sustainable growth and the current conditions in Africa.

Joy Joy Ogutuhas over 10 years of experience in the financial sector in Sub-Saharan Africa. Before joining AFI, she worked at the African Guarantee Fund, where she held the positions of Business Development Officer and Credit Officer. Her roles involved managing the guarantee cycle of financial institutions providing loans to small and medium-sized enterprises. Prior to that, she worked at Equity Bank, Ecobank and Commercial Bank of Africa (now NCBA). Her areas of expertise include deal structuring, credit risk analysis, portfolio manage­ment and relationship management. Joy is passionate about promoting sustainable development by facilitating access to finance and aiding organizations in their investment strategies. She believes that financial returns can be obtained while making a positive impact on the environment and the communities in which AFI operates.

MicroCapital: In your work in financial services, what have been the highlights? What motivates you?

Joy Ogutu: I am

by Benjamin Greissman -

MICROFINANCE PAPER WRAP-UP: “Agri-SME Finance: Navigating Volatility in the Wake of the War in Ukraine;” Published by IFAD, IFC, SAFIN

The authors describe the recent turmoil in global food markets and the resulting “worst food crisis in generations.” The war in Ukraine has had a major impact on markets in Russia and Ukraine, which together previously produced a quarter of the wheat and most of the sunflower oil sold worldwide. Meanwhile, increases in

by Saulius Ramanauskas -

MICROCAPITAL BRIEF: Bank of Ghana, Emtech Solutions Launch Regulatory Sandbox to Encourage Innovation in Finance, Financial Inclusion

The Bank of Ghana (BoG), the country’s central bank, recently launched a regulatory sandbox – a mechanism for testing business models not covered by existing regulations, in partnership with the US-based financial technology (fintech) firm Emtech Solutions. Following a successful pilot phase, BoG adopted Emtech’s digital regulatory review and reporting platform, through which financial service providers can

by Benjamin Greissman -

MICROCAPITAL BRIEF: PAIDEK of DRC, MicroLoan Foundation Zambia Borrow $1m from Grameen Crédit Agricole for Microfinance in Africa

The Luxembourg-based Grameen Crédit Agricole (GCA) Foundation recently announced it has issued a loan of approximately USD 550,000 to Programme d’Appui aux Initiatives de Développement Economique du Kivu (PAIDEK) of the Democratic Republic of Congo (DRC) and

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “Strategies to Optimise MSME-centred Supply Chain Finance Solutions: A Study of Ghana, Ethiopia and Nigeria;” by Adebiyi Fajemisin, Anifat Ibrahim and Raliat Sunmonu; Published by Accion

This report describes how several supply chain finance (SCF) solutions were deployed with the intent of benefiting micro-, small and medium-sized enterprises (MSMEs) in Ethiopia, Ghana and Nigeria. The authors deem these countries particularly “promising markets for MSME-led digital financial inclusion,” and they argue that SCF can provide

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “Leveraging Digital ID and e-KYC for the Financial Inclusion of Forcibly Displaced Persons: Risks and Opportunities;” Published by Alliance for Financial Inclusion

The authors of this paper discuss the use of electronic know-your-customer (e-KYC) procedures and digital forms of identification (ID) to support financial inclusion for forcibly displaced persons (FDPs) in Eswatini, Mauritania and Rwanda.

In Eswatini, refugees and asylum-seekers may apply for refugee ID cards and non-Swazi ID cards, respectively. After acquiring IDs, individuals may access

by Saulius Ramanauskas -

MICROCAPITAL BRIEF: UNCDF Announces Funding, Guarantees, Technical Assistance for Enterprises Reducing Environmental Impacts of Agriculture, Energy, Forestry in DRC

The UN Capital Development Fund (UNCDF) recently launched two new funding instruments to provide financial and technical assistance for enterprises that help address deforestation in Democratic Republic of Congo (DRC), where 95 percent of households rely on wood for cooking. One instrument, Investments Aimed at Quantifiably Reducing the Consumption of Wood Energy in DRC, offers technical assistance and grants valued at

by Benjamin Greissman -

MICROFINANCE PAPER WRAP-UP: “Pacific Insurance and Climate Adaptation Programme: Gender Equality and Social Inclusion Strategy,” Published by UNCDF

The authors of this paper note that the accessibility of climate- and disaster-risk financing and insurance instruments is growing globally and especially in the Pacific Island region. This region is particularly susceptible to climate risk because of factors such as

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “60 Decibels Microfinance Index,” by Sasha Dichter, Devin Olmack, Ellie Rodgers, Akanksha Singh

Using data from approximately 18,000 beneficiaries of 72 microfinance institutions (MFIs) in 41 countries, the authors of this report rank the participating MFIs based on social impact. The researchers collected the data via surveys administered to 250 randomly selected clients for each MFI. The surveys covered 18 indicators, such as

by Hasnat Aslam -

MICROCAPITAL BRIEF: I&M Bank of Kenya Secures $15m Guarantee from FMO to Support MSME Growth

Investment and Mortgages (I&M) Bank, a subsidiary of Kenya-based I&M Group, recently signed an agreement with Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, whereby FMO will deploy a guarantee from its Nasira risk sharing facility to encourage USD 15 million in lending by I&M Bank to

by the MicroCapital Team -

MICROCAPITAL BRIEF: EIB Supporting Technical Assistance for Banque Misr on Financial Inclusion for SMEs, Post-COVID Growth in Egypt

Banque Misr, a financial institution owned by the government of Egypt, recently agreed to work with the EU’s European Investment Bank (EIB) on technical assistance efforts to: (1) enhance Banque Misr’s risk management and company-wide best practices regarding lending to small and medium-sized enterprises (SMEs); and (2) create new financial services through which Banque Misr can support