MICROFINANCE EVENT: Convergences 3Zero World Forum; September 2-3, 2021; Paris, France, with Virtual Option

The 3Zero World Forum will connect professionals in various fields as well as interested citizens in an “exchange and sharing of solutions” with respect to the “3Zero” objective: zero exclusion, zero carbon and zero poverty. The agenda is to cover areas such as “Transforming Economic Models and Organisations Towards a 3Zero World” and

MICROCAPITAL BRIEF: Huruma Fund to Issue Loan of $3.6m, Technical Assistance to COOPAC Norandino to Expand Agricultural Microfinance in Northern Peru

The Huruma Fund, a public-private impact investment vehicle with commitments of EUR 120 million (USD 145 million), recently issued a three-year loan of EUR 3 million (USD 3.58 million) to Cooperativo de Ahorro y Crédito (COOPAC) Norandino of Peru, a microfinance institution (MFI) aiming to provide services such as “tailored credit and savings products, at interest rates that are lower than market average” to the agrarian sector in northern Peru. To complement the loan, various partners of Huruma will support COOPAC Norandino “with projects to improve social performance, digitisation and

MICROCAPITAL BRIEF: RBI Proposes Reforms Including Debt-income Ratio Cap, Repeal of Interest Rate Ceiling for Microfinance Institutions in India

The Reserve Bank of India (RBI) recently proposed a set of new rules that include eliminating the cap on the interest rates that microfinance institutions (MFIs) charge their customers and harmonizing microlending regulations for all organizations providing microloans. This would include

MICROCAPITAL BRIEF: Mwezi Nets Inaugural $500k Debt Investment from Build Fund of Bamboo Capital, UNCDF to Expand Access to Pay-as-you-go Solar Products in East Africa

Luxembourg-based Bamboo Capital Partners and the UN Capital Development Fund (UNCDF) recently partnered to create the Build Fund, whose first investment is a loan of USD 500,000 for

MICROCAPITAL BRIEF: Sanad, Aavishkaar, Uncovered Participate in $4m Equity Raise by Sky.Garden of Kenya to Expand Its Digital Marketplace to Middle East, North Africa

The Luxembourg-domiciled Sanad Fund for MSME recently led a Series A investment in Sky.Garden, a Kenya-based e-commerce platform serving 15,000 micro-, small and medium-sized enterprises (MSMEs). Sky.Garden plans to use the fresh USD 4 million to expand into

MICROCAPITAL BRIEF: Avla Raising $20m in Equity Round to Be Led by US-based Creation Investments to Expand B2B Insurance Offerings in Chile, Mexico, Peru

US-based Creation Investments Capital Management recently announced it is leading an equity investment of USD 20 million in Avla, a Chile-based business-to-business provider of insurance, surety bonds and collections services in Chile, Mexico and Peru. The firm’s insurance products include coverage for

MICROCAPITAL BRIEF: Securities Commission Malaysia, UNCDF Accepting Applications Through June 30 for Fikra Islamic Fintech Accelerator

Securities Commission (SC) Malaysia, the regulator of capital markets in the country, in collaboration with the UN Capital Development Fund (UNCDF), which promotes access to finance in countries with the lowest incomes, recently began taking applications for the Fikra Islamic Fintech Accelerator Programme, which is intended to develop Islamic capital markets in Malaysia by supporting the development of financial technology (fintech) firms. The accelerator will take participants “through the entire value chain from

MICROCAPITAL BRIEF: IFC Places $18m in Equity in BlackPeak Capital to Support SME Growth in Southeast Europe

The International Finance Corporation (IFC), a member of the World Bank Group, recently issued an equity investment of EUR 15 million (USD 18 million) to BlackPeak Southeast Europe Growth Equity Fund (BlackPeak Fund I), which is

MICROCAPITAL BRIEF: Nubank of Brazil Raises $750m in Equity, Mostly from Berkshire Hathaway, Sands Capital to Support Expansion in Latin America

Brazil-based digital bank Nubank recently raised USD 500 million from US-based holding company Berkshire Hathaway to help Nubank: (1) strengthen its management team with additional hires; (2)

MICROCAPITAL BRIEF: Invest in Visions (IIV) Mikrofinanzfonds Lends $12m to Bayport for Payroll Lending in Colombia

Invest In Visions Mikrofinanzfonds, a fund managed by Germany-based Invest In Visions (IIV), has disbursed a senior loan of EUR 10 million (USD 12.1 million) to Bayport Colombia, one of the nine financial services providers (FSPs) of Mauritius-based microfinance network Bayport Management Limited. Bayport Colombia is using the cash to fund

MICROCAPITAL BRIEF: EBRD Commits Up to $45m to Uzpromstroybank of Uzbekistan for Expansion, Including Green Financing for SMEs

Via its Green Economy Financing Facility (GEFF), the UK-based European Bank for Reconstruction and Development (EBRD) recently committed up to USD 25 million to Uzbekistan-based Uzpromstroybank. Founded in 2019, GEFF delivers

MICROCAPITAL BRIEF: Oikocredit Loans $2.5m to Grace and Mercy Microfinance Institution to Support MSMEs, Women Entrepreneurs in Nigeria

Oikocredit, a Netherlands-based cooperative, recently offered a loan of USD 2.5 million to Grace and Mercy Households Improvement Initiative, a nonprofit microfinance institution in Nigeria. The loan is intended to support the expansion of

MICROCAPITAL BRIEF: CDC Group Announces $50m Risk-sharing Facility with Absa Bank to Boost Lending to Households, MSMEs in Africa

CDC Group, a development finance institution backed by the UK government, recently announced a risk-sharing facility of USD 50 million in partnership with Absa Bank Limited, which is based in South Africa and operates in 14 African countries. Under the agreement, CDC will

MICROCAPITAL BRIEF: Microfund for Women (MFW) Expands Digital Capabilities via MoneyPhone Technology

Microfund for Women (MFW), a nonprofit microfinance institution in Jordan, recently partnered with MoneyPhone, a Netherlands-based financial technology (fintech) company, to enhance its digital offerings in response to the COVID-19 pandemic. Bdour Al-Hyari, the director of strategic planning and business development at MFW, cited the “opportunity for us to introduce new digital services, such as

MICROCAPITAL BRIEF: AECID, COFIDES Launch $71m TIF Program Targeting Financial Inclusion, Sustainability in Latin America

Compañia Española de Financiación del Desarrollo (COFIDES), a development finance institution controlled by the Spanish government, recently unveiled a new program called Triple Bottom Line Inclusive Finance in Latin America (TIF), in collaboration with the Agencia Española de Cooperación Internacional para el Desarrollo (AECID), a unit of the government of Spain. TIF aims to support low-income populations in Latin America by increasing access to loans while

MICROCAPITAL BRIEF: DFC to Invest $40m in Housing, Microfinance, SME Lending, Agriculture in Guatemala

The government-backed US International Development Finance Corporation (DFC) recently agreed to invest USD 40 million in Guatemala in the following segments: (1) a loan of USD 19.5 million to Guatemala-based real estate company Destino Desarrollos to aid in the construction of “approximately 2,000 homes and associated infrastructure” deemed “affordable” in the cities of Coban, Fraijanes and Quetzaltenango; (2) with support from the US Agency for International Development (AID), a loan guarantee of USD 15 million to Guatemala-based bank Interbanco, to cover the local-currency equivalent of USD

SPECIAL REPORT: European Microfinance Week 2021 to Be Fully Online

From the European Microfinance Platform (e-MFP): The past 15 months have been very challenging, and during this time we at e-MFP have engaged with our members and friends and adapted our activities accordingly to best mitigate the effects this pandemic brings to our sector and the vulnerable people we as a community serve.

One of our flagship activities is European Microfinance Week – held annually in November – and while it is difficult to predict the progression of the pandemic, it remains likely that travel restrictions will still apply in the coming months and that participants from the global South will be