As part of its “Banking on Africa” campaign, Opportunity International, a global network of microfinance institutions (MFIs), recently announced plans to begin “community banking” operations in Democratic Republic of Congo (DRC) thanks in part to a USD 2.5 million grant from the United Nations Capital Development Fund’s (UNCDF’s) MicroLead program. MicroLead is a USD 27.8 million fund that pledges loans and grants to large MFIs and financial service providers to allow them to initiate microfinance operations in underdeveloped countries with a special focus on post-conflict countries.
The grant will be used to establish Opportunity DRC, which will offer savings accounts, business loans and training programs. Over the next three years, Opportunity DRC plans to open four branches, serve 24,000 depositors with aggregate savings of USD 4.7 million and disburse 47,000 business loans.
By Rohan Trivedi, Research Associate
About Opportunity International:
Based in the United States, Opportunity International is a nonprofit organization that provides small business loans, savings, insurance and training to approximately two million impoverished people in 24 countries in Africa, Asia, South America and Eastern Europe. As of year-end 2009, Opportunity International had total assets of USD 567 million, a gross loan portfolio of USD 388 million and 1.3 million active loans.
About United Nations Capital Development Fund (UNCDF):
The United Nations Capital Development Fund (UNCDF) provides investment capital and technical advice to promote microfinance and private sector development in developing countries. UNCDF currently invests in thirty-eight “least developed countries” with a programme portfolio amounting to approximately USD 200 million.
About MicroLead:
MicroLead is a USD 27.8 million fund that was established in 2008 by the United Nations Capital Development Fund (UNCDF) and was partially funded by a grant from the US-based Bill and Melinda Gates Foundation. The fund is administered by UNCDF and provides loans and grants to “leading microfinance institutions and other financial service providers” with the aim of expanding operations in least developed countries (LDCs) as defined by the United Nations. MicroLead prioritizes efforts in post-conflict countries.
Sources and Additional Resources:
[1] Opportunity International Press Release: “UNCDF Supports the Expansion of Opportunity International’s Network of Community Banks into the Democratic Republic of Congo”, http://www.opportunity.org/press-releases/uncdf-supports-the-expansion-of-opportunity-international?s-network-of-community-banks-into-the-democratic-republic-of-congo/
MicroCapital Universe Profile: Opportunity International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+International
MicroCapital Universe Profile: United Nations Capital Development Fund (UNCDF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Nations+Capital+Development+Fund+%28UNCDF%29
MicroCapital Universe Profile: MicroLead, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroLead
MicroCapital Universe Profile: Millennium Development Goals (MDGs), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Millennium+Development+Goals+%28MDGs%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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