MicroVest, a debt-focused asset manager owned by US-based DAI Global, recently agreed to lend USD 6 million to Khan Bank, which serves individuals and companies of all sizes in Mongolia. The goal of the loan is to boost
MICROCAPITAL BRIEF: Catalyst Fund to Incubate 6 “Inclusive” Fintechs Serving Africa, Latin America
Catalyst Fund, an initiative of the US-based firm BFA (Bankable Frontier Associates) Global, recently announced the tenth cohort of financial technology (fintech) companies that it will support in their efforts to serve more “underserved and climate-vulnerable communities in emerging markets.” Four of the companies are based in
MICROFINANCE PAPER WRAP-UP: “Platforms, Livelihoods and Inclusive Finance,” Published by Center for Financial Inclusion at Accion
Ms El-Zoghbi and Ms Michaels explore the role of digital platforms in supporting financial inclusion and livelihoods. Their background research indicates that such platforms have transformed some economies significantly by (1) helping businesses recover from the early stages of the COVID-19 pandemic; and (2) providing employment opportunities for disadvantaged populations such as youth, women and rural residents. In particular, e-commerce, gig working, social media and agricultural platforms have been found to improve the livelihoods of low-income consumers as well as increase the strength of micro-, small and medium-sized enterprises. The
MICROFINANCE EVENT: 7th Annual Symposium of Nigerian Microfinance Platform; April 28, 2022; Abuja, Nigeria
The goal of this annual series of events is to bring together stakeholders in the Nigerian microfinance sector to discuss current issues in the field. The agenda for this year’s symposium includes the following topics: (1) Microfinance Banking in a Post-Pandemic Era: Financial Technology Options; (2) Improving Efficiency of Microfinance Banks through
MICROCAPITAL BRIEF: MicroVest Investing $2.5m in Rentek of Colombia to Help MSMEs Recover from COVID-19 Downturn
MicroVest, a debt-focused asset manager owned by US-based DAI Global, recently agreed to lend USD 2.5 million to Rentek, a Colombian funder of micro-, small and medium-sized enterprises (MSMEs). The goal is to assist Rentek’s clients in recovering from the economic fallout of the COVID-19 pandemic. Founded in 1997, Rentek provides liquidity to businesses via loans, equipment leasing and invoice factoring. It also operates a
MICROCAPITAL BRIEF: Pahal Raises Equity, Debt from Huruma Fund, Magallanes Impacto, Northern Arc to Expand Microfinance for Women Farmers in India
Spain-based Gawa Capital recently disbursed EUR 6 million (USD 6.5 million) from the Huruma Fund, a public-private partnership also based in Spain, to purchase a minority stake of undisclosed size in Pahal Financial Services, a microfinance institution based in the city of Ahmedabad, India. Among the goals of the investment are
SPECIAL REPORT: AFI SDG Rating Analyst Pratibha Singh, FINCA Tajikistan CEO Sergey Kim Discuss the AFISAR Rating, Microfinance, Impact and Much More!
This is part of a series of features sponsored by Agents for Impact (AFI), a German impact investing firm whose products include the AFI Sustainability Alignment Rating (AFISAR©) Tool. The AFISAR© rating is a trust mark – in microfinance and other forms of social business – signifying a commitment to positive and enduring change for people and the planet based on the UN Sustainable Development Goal (SDG) framework.
AFISAR© helps MFIs leverage the market’s growing focus on sustainability performance to raise capital from international investors and, particularly, impact investors. The rating helps investors and social businesses understand their strengths and weaknesses and devise effective strategies to minimize negative impact and maximize positive impact to the benefit of the organization – its employees, clients and other stakeholders – as well as the environment.
The active dialogue and engagement embedded in the AFISAR© rating process enables the MFI as well as asset managers to embark on a journey that leads to long-term sustainable development. A rating above the sustainability threshold on the scale (see below) is favorable for the disbursement funds. To date, AFI has used the AFISAR© Tool to rate 30+ microfinance and SME finance institutions in the Caucasus, Central and South Asia, East Africa and Eastern Europe, helping the institutions demonstrate their SDG competency and alignment.
Pratibha Singh (pictured): How did you become interested in microfinance?
Sergey Kim: My professional career started in 1998 in the field of microfinance. I was working as a loan officer for a UN microcredit project, which made it possible for me to have a close look at the ground-level realities concerning credit operations. After finishing my graduate degree, I chose FINCA because the job was close to people.
I have worked with FINCA since 2006 and have been in Tajikistan for the last 12 years. FINCA Tajikistan has been active since 2004 and is now amongst the top
MICROCAPITAL BRIEF: Bix, FMO Lending $10m to C-Quest Capital to Expand Usage of Clean Cookstoves in Sub-Saharan Africa
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership, is lending USD 6.4 million to C-Quest Capital, a US-based investor in projects that reduce the environmental impacts of energy production and usage in low- and middle-income countries. At the same time, Bix Capital, a Dutch provider of debt financing to small and medium-sized enterprises (SMEs) to boost
MICROCAPITAL BRIEF: Spark+Africa Fund Raises $40m in Equity from Public, Private Investors for Clean Cookstove Industry in Sub-Saharan Africa
The Spark+Africa Fund, an investor in cookstoves that create less pollution and use less fuel, recently launched with a total of USD 40 million invested by 12 organizations. Spark+ invests across the value chain for
MICROCAPITAL BRIEF: BNCR Raising $75m from IDB Invest, FinDev Canada via Social Bond Issue Focusing on Women Entrepreneurs in Costa Rica
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, recently arranged a social bond issue in the amount of USD 75 million to benefit the Banco Nacional de Costa Rica (BNCR), a government-owned bank. The funding is intended to
MICROCAPITAL BRIEF: Philippines Looking to Satellites to Improve Access to Finance, Internet, Disaster Response
The government of the Philippines recently acted to reduce regulatory barriers to companies such as internet service providers and financial technology (fintech) firms looking to use satellite systems to reach customers and their own staff in rural areas and during natural disasters. Benjamin Diokno, Governor of Bangko Sentral ng Pilipinas (BSP), reportedly said, “With enhanced access to satellite broadband services, financial institutions can improve their disaster recovery plans as part of their resilience strategy…. They will also be able to set up more access points, such as branch lite operations, ATMs [automated teller machines], and cash agents in underserved areas.” For example,
MICROCAPITAL BRIEF: Green for Growth Fund Lending MF Banka $5.5m to Promote Renewable Energy, Efficiency Among SMEs in Bosnia and Herzegovina
The Green for Growth Fund (GGF), a public-private partnership registered in Luxembourg, recently partnered with MF Banka a.d. Banja Luka, a bank that primarily serves small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina, to expand the bank’s lending for energy efficiency and renewable energy projects. MF Banka is borrowing EUR 5 million (USD 5.5 million) from GGF to fund
MICROFINANCE EVENT: SOCAP22; October 17-20, 2022; San Francisco, California, USA
This event has been held each year since 2008. Although the 2022 agenda has not been announced yet, SOCAP21 included panels on topics such as: “The New Tech-touch Balance: How to Deliver Inclusive Fintech (Financial Technology) Solutions for Underserved Populations,” “Driving Social Impact by
MICROCAPITAL BRIEF: Central Bank of Brazil to Apply Banking Regulations to Large Fintechs, Maintain Flexibility for New Entrants
During the course of 2023 and 2024, Banco Central Do Brasil (BACEN) will phase in tighter regulatory restrictions on large financial technology (fintech) firms in Brazil. Using the concept of proportionality, the central bank’s new rules will
MICROCAPITAL BRIEF: Agents for Impact Disburses $15m in Local Currency from IIV to MBK Ventura of Indonesia for Group Microfinance Loans for Women
Agents for Impact (AFI), a Germany-based impact investing company, recently informed MicroCapital that it has disbursed a local-currency loan equivalent to USD 15 million in favor of Mitra Bisnis Keluarga (MBK) Ventura, a microlender in Indonesia, on behalf Invest in Visions (IIV). Established in 2006, MBK Ventura seeks to raise the living standards of low-income women in rural parts of the island of Java by providing access to group microloans for use as
SPECIAL REPORT: Christoph Pausch on the €100k European Microfinance Award Focusing on Women – Applications Are Open Until April 12
MicroCapital: Why was “Financial Inclusion that Works for Women” chosen as the topic of the 2022 Award?
Christoph Pausch (pictured below): Women ostensibly have been the focus of financial inclusion for decades. But the reality is that a focus on outreach – the number of women clients a financial provider serves – can obscure lack of progress in addressing the many barriers that women face. Increasingly, stakeholders in the sector realise that much more needs to be done, based on a comprehensive understanding of these barriers: including social norms as well as the diverse needs and aspirations of women clients, staff and partners of financial services providers. So, over the months leading up to the launch of this year’s Award, our team has worked with experts to design the guidelines, application forms and assessment criteria to capture what financial providers can do with a gender-focused strategy – not only to
MICROCAPITAL BRIEF: Microfinance Lender KixiCrédito to Boost E-services in Angola with Support from IFC
The International Finance Corporation (IFC), a member of the World Bank Group, recently announced a partnership with KixiCrédito, an Angolan microcredit company, to strengthen KixiCrédito’s “delivery of digital financial services to individuals and micro-, small and medium-sized enterprises (MSMEs) across the country.” The plan includes
MICROCAPITAL BRIEF: Major Development Funders Launch “Alliance for Entrepreneurship in Africa” to Support SMEs – Especially Those Run by Women, Youth
A group of organizations involved in international development recently launched the Alliance for Entrepreneurship in Africa (AforE) with the aim of supporting the growth of small and medium-sized enterprises (SMEs), particularly those owned or operated by youth and female entrepreneurs. The alliance seeks to