In its July 2010 newsletter, the Indian microfinance institution (MFI) Sanchetna Financial Services reported that it will be receiving a loan of INR 10 million (USD 211,000) from Maanaveeya Holdings and Investments, the Indian subsidiary of the Dutch cooperative investment fund Oikocredit. In addition, Sanchetna will receive INR 3 million (USD 64,000) from the microfinance investment vehicle (MIV), Ananya Finance for Inclusive Growth, and INR 2 million (USD 43,000) from the nonprofit trust, Trust MicroFin Network (TMN).
MICROCAPITAL BRIEF: Nokia Launches Microfinance Scheme to Sell Mobile Phones to Poor People in Rural India
Nokia, a Finnish telecommunications company, is partnering with microfinance institutions (MFIs) to allow rural residents in the Indian states of Punjab and Haryana to use microloans to buy mobile phones. The company has already formed partnerships with several microfinance MFIs in the area, including SKS Microfinance, which is based in Hyderabad; Ujjivan, which maintains offices in Bangalore, Delhi, Kolkata and Pune; and Madura Microfinance, headquartered in Adyar. The payment scheme for the use each mobile phone will be as low as INR 100 (USD 2.14) per week.
MICROCAPITAL BRIEF: MFTransparency to Launch Transparent Pricing Initiative in Eight West African Countries, in Partnership with Luxembourg Development Cooperation
(Version Française de la publication ci-dessous)
MFTransparency, a non-governmental organization which promotes accurate and transparent pricing in the microfinance industry, recently expanded its transparent pricing initiative to eight West African countries: Senegal, Burkina Faso, Benin, Cote d’Ivoire, Togo, Guinea Bissau, Mali and Niger.
MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund and responsAbility Mikrofinanz-Fonds Invest $200,000 in FASO Investments and Catalyst Microfinance Investors (CMI), Which Invest in Asia and Africa
responsAbility, a Swiss-based microfinance investment vehicle (MIV) manager, recently reported to MicroCapital that it has invested USD 201,000 in equity financing from two of the funds it manages in two microfinance-focused investment firms.
MICROCAPITAL BRIEF: Grameen Foundation Releases Paper, “Measuring the Impact of Microfinance: Taking Another Look” by Professor Kathleen Odell
The Grameen Foundation, a US-based nonprofit organization, has released a paper, titled, “Measuring the Impact of Microfinance: Taking Another Look,” to address and inform the current debate surrounding microfinance’s efficacy in reducing poverty and ameliorating other social problems.
MICROCAPITAL BRIEF: Ghana Islamic Microfinance Plans to Commence Operations in September, Provide Shariah-Compliant Loans
Ghana Islamic Microfinance, a new microfinance company in Ghana, plans to commence operations in September 2010, providing Shariah-compliant microfinance loans to both the Muslim and non-Muslim community.
MICROCAPITAL BRIEF: Microfinance Institutions Network (MFIN) Aims to Increase Accountability in India with Appointment of Ombudsmen
An article from Business Standard, a business newspaper based in India, reports that the Microfinance Institutions Network (MFIN) of India, a self-regulated network organization of 39 microfinance institutions (MFIs) in India, will appoint four regional ombudsmen in the next three months to encourage transparency in the microfinance sector. While specific duties of the proposed regulators were not provided, MFIN stated that no appointees would be from MFIs.
MICROCAPITAL BRIEF: The 37th Annual African Insurance Conference Concludes Microinsurance Represents “Blue Ocean of Opportunities,” but Requires Oversight
Daily Independent, a Nigerian newspaper, reports from the 37th Annual African Insurance Conference in Banjul, the Gambia, that African microfinance prospects look bright, but some are concerned about transparency issues.
MICROCAPITAL BRIEF: Microfinance Institution in India, SKS Microfinance, Reports NCDs, Commercial Paper Will Help Cut Lending Rates by 200 Basis Points
In a release from IndiaMicrofinance.com, it is reported that SKS Microfinance, an Indian microfinance institution (MFI) which claimed assets of USD 596 million for 2009, will be able to lower its retail lending rates by 200 basis points to 26.3 percent by lowering its costs of funds through the issuance of non-convertible debentures (NCDs) and commercial paper.
MICROCAPITAL BRIEF: Microfinance Institution Tuba Rai Metin Grows in Timor-Leste with Consulting from BASIX Group of India and Support from the INFUSE Program of the United Nations and Australian Agency for International Development (AusAID)
A press release from the United Nations Development Program (UNDP) reports that the microfinance institution (MFI) Tuba Rai Metin (TRM) is quickly growing in Timor-Leste. TRM, which was started in 2002, has reportedly enlarged its client base by 25 percent since the start of 2010. TRM provides loans and savings services to over 3,000 clients, 100 percent of which are women. According to the MIX Market, the microfinance information clearinghouse, TRM had total assets of USD 753,000, a gross loan portfolio of USD 437,000 and 2,838 borrowers as of 2009.
MICROCAPITAL BRIEF: Microfinance Valuations Too High? Too Low? Depends Who You Ask
In the global microfinance industry, the topic of valuation is being debated by investors and representatives of microfinance institutions (MFIs). In an article released by the Financial Chronicle, a Hyderabad-based business news publication, Padmaja Reddy, managing director at Spandana Sphoorty Financial, proposes that MFIs share similar business models with banks and non-banking financial institutions, but are unjustly undervalued. Investors respond that the risks involved in MFI investment are too high. In a related article, The Wall Street Journal, a US-based business newspaper, cites the risks involved in MFI investment. Avnish Bajaj, managing director of Matrix Partners India which has an investment in one of India’s largest microfinance institutions, states, “There are elements of bubble in this sector. Over-lending, lack of processes, excessive geographical concentration and excessive product concentration,” all increase investors’ level of risk.
MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund and responsAbility Mikrofinanz-Fonds Lend $1.5m to Arnur Credit of Kazakhstan, AfK of Kosovo and Arvand of Tajikistan
responsAbility, a Swiss-based microfinance investment vehicle (MIV) manager, recently reported to MicroCapital that it has provided USD 1.5 million in debt financing from two of the funds it manages to three microfinance institutions (MFIs) in Kosovo and Central Asia.
MICROCAPITAL BRIEF: Nigerian Tech Firms Systemspecs and Maxim-Pro to Begin Training Microfinance Institution (MFI) Staff on Integration of E-Payment Service, Remita
A release from the online edition of Nigeria’s Champion Newspaper reports that Systemspecs Nigeria Limited, a software development firm headquartered in Lagos, and Maxim-Pro, a Nigerian technology provider to financial firms, finalized arrangements to begin training for the staff of approximately 125 Nigerian microfinance banks that have recently begun offering Remita, an electronic payment (e-payment) service.
MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund and responsAbility Mikrofinanz-Fonds Disburse $72,000 to KapitalMujer and Te Creemos of Mexico
responsAbility Global Microfinance Fund, a Swiss-based microfinance investment vehicle (MIV) manager, recently reported to MicroCapital that it has provided MXN 942,000 (USD 72,000) in debt financing to two Mexican microfinance institutions (MFIs).
MICROCAPITAL BRIEF: Microfinance Information Exchange Releases “Is Microfinance Growing Too Fast?” by Adrian Gonzalez Indicating Portfolio Quality Negatively Correlated with Increasing Number of Borrowers
The Microfinance Information Exchange (MIX) has released a paper by researcher Adrian Gonzalez entitled “Is Microfinance Growing Too Fast?”
MICROCAPITAL EVENT: The 2010 Asia Microfinance Forum in Colombo, Sri Lanka, from October 12 – October 15, 2010
Event Name: The 2010 Asia Microfinance Forum
Event Date: October 12 – October 15, 2010
Event Location: Cinnamon Grand Hotel, Colombo, Sri Lanka
MICROCAPITAL BRIEF: Bharti AXA General Insurance Predicts 70 Percent Rise in Turnover from Collaboration with Indian Microfinance Institutions Anjali Microfinance and Arohan Financial Services
In a release from BusinessStandard.com, an online publication of business news in India, it was reported that Bharti AXA General Insurance, an Indian insurance provider, predicts its turnover will increase 70 percent in the next fiscal year, 2010-2011 as a result of distributing its products through microfinance institutions (MFIs). While it is cited that more than 55 percent of the company’s premium revenue comes from motor insurance, it predicts expansion in the microinsurance sector will boost overall revenue.
MICROCAPITAL EVENT: Triple Bottom Line Investments (TBLI) Conference Europe 2010 on November 11-12, 2010, in London
Event Name: Triple Bottom Line Investments (TBLI) Conference Europe 2010
Event Date: November 11- November 12, 2010
Event Location: Grange St. Paul’s Hotel, London, United Kingdom