MICROCAPITAL BRIEF: Bank of Ghana Warns Public About Illegal Microfinance Institutions

The Bank of Ghana recently accused a group of microfinance institutions of operating illegally, including Agro Development Fund Services Limited, Hebron Financial Services, MMM, Money-doubler and Oboanipa Ventures Limited. The government of Ghana is in the process of implementing a Depositors Insurance Act

MICROFINANCE PUBLICATION ROUND-UP: 11th Symbiotics MIV Survey, Very Small Businesses in Ethiopia, Climate-shock Recovery Lending in Africa

“2017 Symbiotics MIV Survey,” published by the Symbiotics Group, September 2017, 55 pages, available at:
http://symbioticsgroup.com/wp-content/uploads/2017/09/Symbiotics-2017-MIV-Survey.pdf

This 11th annual survey of microfinance investment vehicles (MIV) offers data from 93 microfinance funds managed by “44 specialized asset management companies located in 17 countries.” The responding firms’ funds comprise 94 percent of the estimated market size of USD 13.5 billion. The MIV’s assets allocated to microfinance total USD 9.6 billion, of which 73 percent is in fixed-income funds, 16 percent in mixed funds and

MICROFINANCE EVENT: $165k Ethical Finance Innovation Challenge and Awards Gala Dinner; November 15, 2017; Dubai, UAE

Event Name: Ethical Finance Innovation Challenge and Awards Gala Dinner

Event Date: November 15, 2017

Event Location: The Ritz Carlton, Dubai International Financial Centre, United Arab Emirates

Summary of Event: This is the fifth rendition of a group of awards given by Thomson Reuters, a media firm traded on the New York and Toronto stock exchanges, and Abu Dhabi Islamic Bank,

MICROFINANCE EVENT: Second European Microfinance Summit – Future Challenges for Sustainable Development; January 25-26, 2018; Vienna, Austria

Event Name: Second European Microfinance Summit – Future Challenges for Sustainable Development

Event Date: January 25-26, 2018

Event Location: Vienna, Austria

Summary of Event: This event will compare and contrast microfinance in Eastern and Western Europe, focusing the inclusion of people in very rural areas, environmental impacts, technology and

SPECIAL REPORT: HR Challenges Within MFIs at European Microfinance Week: “Banking Is People”

MicroCapital: Do you find that microfinance institutions (MFIs) tend to underinvest in human resources (HR)?

Rüdiger Meister: Definitely! Despite the efforts of many consultants in this field, the crucial role of HR management remains under-estimated. Technical assistance interventions, which often accompany investments into MFIs, tend to focus on discrete areas rather than following a holistic and structured approach to capacity building.

There is also a problem of short-term versus long-term thinking. In the short term, the MFI will function even if there are weaknesses in HR management. But in the long term, the MFI will have to pay for mistakes in areas such as

MICROCAPITAL BRIEF: MicroFinanza Rating Issues 27 Rating Updates, New Reports for Microfinance Institutions in the Philippines, Latin America

During October 2017, MicroFinanza Rating (MFR) issued a Micro­finance Institutional Rating (MIR) of BB with a Stable outlook to Rangtay sa Pagrang-ay Microfinance of the Philippines. MFR also updated the MIRs of three affiliates of US-based Pro Mujer Incor­porated: Pro Mujer Argentina’s was confirmed at BB+ with a Positive outlook; Pro Mujer Nicaragua’s was confirmed at BBB+ with a Stable outlook; and Pro Mujer Mexico’s was upgraded

MICROCAPITAL BRIEF: EBRD Loans $2.3m to Kreditimi Rural i Kosoves (KRK) to Support “Green Economy” in Kosovo

The European Bank for Reconstruction and Development (EBRD), a UK-based development finance institution created following the Cold War, recently loaned EUR 2 million (USD 2.3 million) to Kreditimi Rural i Kosoves (KRK), a microfinance institution primarily serving the agriculture sector and low-income individuals in Kosovo. As part of EBRD’s Green Economy Transition (GET) policy, the loan will support

SPECIAL REPORT: MFIs in Afghanistan, Peru, Mexico Shortlisted for $118k “Microfinance for Housing” Award

The European Microfinance Platform (e-MFP) recently announced the following finalists for the European Microfinance Award, which in 2017 is focused on housing: First Microfinance Bank Afghanistan, Peru’s Mibanco and Mexico’s Cooperative Tosepantomin. The award, with a cash prize of EUR 100,000 (USD 118,000), will be presented during European Microfinance Week in

MICROCAPITAL BRIEF: Incofin Raises $6.5m from KfW for Fairtrade Access Fund, DRC-focused FPM

Belgium’s for-profit Incofin Investment Management recently received investments from German development bank Kreditanstalt für Wiederaufbau (KfW) in two funds that it advises, the Fairtrade Access Fund (FAF), which invests in initiatives supporting farmers in developing countries, and FPM SA (Fonds pour l’inclusion financière en République Démocratique Congo), which lends “medium-term” funds

MICROCAPITAL BRIEF: Oikocredit Sells Equity Stake in Microfinance Institution Financiera Confianza of Peru to Fundacion BBVA MicroFinanzas

Oikocredit, a cooperative based in the Netherlands, recently sold its stake in Financiera Confianza, a Peruvian microfinance institution (MFI), to Fundacion BBVA MicroFinanzas, which was launched by Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) in 1998. The size and price of the stake, which Oikocredit assembled in multiple purchases

MICROCAPITAL BRIEF: World Bank Group, Committee on Payments & Market Infrastructures (CPMI), UN’s International Telecommunication Union Launch “Financial Inclusion Global Initiative” to Study Digital Finance

The World Bank Group, the Switzerland-based Committee on Payments and Market Infrastructures (CPMI) and the UN’s International Telecommunication Union (ITU) recently introduced

MICROCAPITAL BRIEF: Green for Growth Fund (GGF) Loans $6m to Halkbank to Finance Energy-efficient Housing in Serbia

The Green for Growth Fund (GGF), which was founded by Germany’s Kreditanstalt für Wiederaufbau (KfW) and the EU’s European Investment Bank (EIB), recently disbursed EUR 5 million (USD 5.9 million) to Halkbank AD Belgrade, a subsidiary of Turkey’s government-controlled Halk Bank Incorporated. The loan is slated to back mortgages on homes that consume

SPECIAL REPORT: Microfinance Investment Vehicles, MFIs “Speed Date” at SAM Investor’s Fair in Ethiopia

Both the “speed dating” and “free meeting” sessions for microfinance institutions (MFIs) to sit down with investors were very popular at SAM Conference 2017, Addis Ababa, Ethiopiathe SAM (Semaine Africaine de la Microfinance) conference in Addis Ababa. Representatives of dozens of organizations met each other for the first time and renewed old connections.

Duncan Frayne of Switzerland-based Symbiotics Group spoke on behalf of REGMIFA (the Regional MSME Investment Fund for Sub-Saharan Africa), for which his company serves as investment manager. He said, “The value for me is meeting up-and-coming MFIs as well as

MICROCAPITAL BRIEF: Nestlé, Telenor Microfinance Bank Providing Digital Loans to Farmers in Pakistan

The Pakistani subsidiary of Switzerland-based food company Nestlé recently partnered with Telenor Microfinance Bank Limited, a Pakistani branch of Norway’s Telenor Group, to provide microloans to its dairy farmer suppliers via Telenor Microfinance’s mobile wallet service, Easypaisa. The program reportedly uses a “digital credit score card and analytics, thus considerably reducing