The Grameen Crédit Agricole (GCA) Foundation, whose head office is in Luxembourg, has agreed to lend EUR 3 million (USD 3.5 million) over three years to Pahal Financial Services, a microfinance institution based in Ahmedabad, India. Caroline Brandt, senior investment manager at GCA Foundation, stated that the partnership will
MICROCAPITAL BRIEF: Cora Raises $27m in Equity from Ribbit, Greenoaks, Kaszek for Fintech in Brazil
Cora, a Brazil-based financial technology (fintech) firm that serves owners of small and medium-sized enterprises (SMEs), recently announced it received approximately BRL 150 million (USD 26.7 million) in its Series A funding round, led by US-based investment firm Ribbit Capital with participation from US-based Greenoaks Capital and Argentina-based Kaszek Ventures. The breakdown of the investment total among the firms and the sizes of the stakes
MICROCAPITAL BRIEF: Belize Bank, Wallet Factory to Launch Digital Payment Service E-kyash
Wallet Factory, a financial technology company based in the UK, recently partnered with Belize Bank Limited, a commercial bank in Belize, to create E-kyash, a digital payment platform aiming to ease financial transactions for people without bank accounts. E-kyash’s offerings include utility bill payments, retail payments via
MICROCAPITAL BRIEF: Dominican Republic-Based Banco Caribe to Receive $2.64m, Technical Assistance from Oikocredit to Support SMEs
Netherlands-based cooperative Oikocredit recently invested DOP 150 million (USD 2.64 million) in Dominican Republic-based Banco Caribe to support the country’s small and medium-sized enterprises (SMEs), with the hope that the infusion will “further [motivate] responsible investments in the region.” Additionally, Oikocredit will provide Banco Caribe with technical
MICROCAPITAL BRIEF: Pngme, Data Processor for Lenders in Africa, Raises $3m in Seed Equity Round Led by EchoVC, Lateral Capital, Radical Ventures, Raptor Group
Pngme, a US-based financial data firm focused on African markets, recently announced it has closed its seed fundraising round at a volume of USD 3 million. Pngme offers an application program interface (API) that allows financial institutions to access and analyze
MICROFINANCE PAPER WRAP-UP: “Financial Literacy Education: Implication on the Economic and Social Life of the Teacher in Ghana,” by Juabin Matey et al, Published by International Research Journal of Multidisciplinary Scope
The authors of this paper investigated “how consumers acquire knowledge of financial numeracy and how it’s applied, especially to their economic and social lives.” Past research has shown both higher borrowing costs and over-spending to be correlated with
MICROCAPITAL BRIEF: DFC to Double $48m in Lending to MicroVest to Promote Investment in Microfinance, SMEs, Women
The US government’s International Development Finance Corporation (DFC) recently committed to doubling its USD 48 million debt funding of US-based asset management firm MicroVest, aiming to “expand financing opportunities for microfinance and SME [small, and medium-sized enterprise] finance institutions that support underserved microenterprises and small businesses worldwide.”
Algene Sajery, the head of global gender equity initiatives for DFC, stated, “DFC is pleased to support MicroVest’s
SPECIAL REPORT: Christoph Pausch on the European Microfinance Award 2021: Inclusive Finance and Health Care
MicroCapital: 
Why was “Inclusive Finance and Health Care” chosen as the topic of the European Microfinance Award 2021?
Christoph Pausch: As the past year has shown us all with such unfortunate clarity, health is everything. Being healthy allows education to play its role in opening new opportunities; it allows people to earn, invest and employ others; it keeps the economy growing and lets groups and societies prosper. And the opposite is true as well: without health – without health care to help people recover from serious health shocks and to stop minor health issues from becoming serious – it’s so hard for people to prosper.
This is especially true for the global poor – the financially excluded – who typically have volatile and precarious incomes and live in countries without high-quality universal health care. They not only need access to health care, but also the ability to pay for it. Too often this can mean taking on debt and selling income-generating assets or even
MICROCAPITAL BRIEF: DFC to Guarantee $10m in Borrowing by Trine to Invest in Solar Power in Latin America, Caribbean
The US government’s International Development Finance Corporation (DFC) recently agreed to cover half of potential losses on USD 20 million being raised by Trine AB, a Sweden-based solar investment platform, to support industrial solar ventures as well as mini-grids in Latin America and the Caribbean. This funding is sufficient to supply renewable energy to approximately 600,0
MICROFINANCE PAPER WRAP-UP: “Crisis Roadmap for Microfinance Institutions: COVID-19 and Beyond,” by Julie Abrams, Published by CGAP
The author structures this publication as an 11-step “roadmap” for microfinance institutions (MFIs) to respond to the COVID-19 pandemic and its economic impacts as well as to develop resilience going forward.
MICROCAPITAL BRIEF: IDB Launches Program to Connect Women’s MSMEs in Latin America, Caribbean with Value Chains, International Trade
The Inter-American Development Bank (IDB), a multilateral financial institution that promotes economic development in Latin America and the Carribbean, has partnered with six large companies to launch a program promoting the integration of women-owned businesses “into foreign trade and regional value chains” as a way to: (1) stimulate the region’s economy as it adjusts to the COVID-19 pandemic; and (2) increase job opportunities and decrease economic and other gaps between men and women. The private firms, whose roles have yet to be clearly defined, are Ireland-based Accen
MICROCAPITAL BRIEF: Apis Partners, JG Summit Commit $108m for Minority Equity Stakes in TymeBank to Expand Microinsurance, Payment Card Services to Individuals, SMEs in South Africa
TymeBank, the South African unit of Singapore-based TymeGlobal, has secured commitments totaling ZAR 1.6 billion (USD 108 million) from the Filipino conglomerate JG Summit Holdings and UK-based asset manager Apis Partners. Although the exact terms of the deal have not been released, TymeBank has so far received
MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Approves 3-year Loan of $1.4m to Microfinance Institution Mikra of Bosnia and Herzegovina
The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, has agreed to issue a three-year loan of EUR 1.2 million (USD 1.4 million) to Mikra, a microfinance institution in Bosnia and Herzegovina that seeks to “provide financial services to the poorest but economically active populations.” Of the microlender’s 15,000 clients, about 10,200 are female and 8,700 live in rural areas. Mikra’s group and individual loans range in size from
MICROFINANCE PAPER WRAP-UP: “Helping Low- and Moderate-income Malaysians Save: Insights from UNCDF’s Work With GoGet and Pod,” Published by UNCDF
Data from Bank Negara Malaysia, the country’s central bank, illustrate a downward trend in household savings from 2018 through the beginning of the COVID-19 pandemic. The latest data available indicate that “two thirds of self-employed respondents have savings equivalent to one month’s expenses, while 83 percent
MICROCAPITAL BRIEF: Deetken Impact, Pro Mujer Raise $1.3m from USAID for Ilu Women’s Empowerment Fund to Deploy in Latin America, Caribbean
Canada-based asset management company Deetken Impact and US-based nonprofit women’s development organization Pro Mujer recently announced they have raised USD 1.3 million from the US Agency for International Development (USAID) for the Ilu Women’s Empowerment Fund, which is active in Latin America and the Caribbean. Deetken plans to leverage a portion of the funding to attract private investment, adding a total of USD 5 m
MICROFINANCE PAPER WRAP-UP: “Reaching Financial Equality For Women;” Published by Women’s World Banking, World Bank, Better Than Cash Alliance, UNSGSA, UN Women, UNCDF
This action plan is intended to help governments, businesses, and NGOs “rebuild stronger” after the COVID-19 pandemic by reducing gender inequality. UN Women estimates that at least 47 million more women and girls will fall below the poverty line in 2021 due to COVID-19. The following actions, which are prioritized equally, aim to
MICROCAPITAL BRIEF: Nordic Microfinance Initiative, Adar Poonawalla, Rajiv Dadlani Group Boost Equity Stakes in Svasti of India
Three previous investors in the company recently committed an additional INR 310 million (USD 4.3 million) to Svasti Microfinance, a provider of loans and payment services to 188,000 customers in India, mostly
MICROCAPITAL BRIEF: CBN Adds $120m to COVID-19 Pandemic Relief Fund for Loans to MSMEs, Households in Nigeria
The Central Bank of Nigeria (CBN) recently announced the addition of NGN 50 billion (USD 120 million) to its Targeted Credit Facility, a stimulus program for micro-, small and medium-sized enterprises (MSMEs) as well as households affected by the pandemic. The funding will be disbursed through NIRSAL Microfinance Bank, which is minority-owned by CBN’s Nigerian Incentive-based Risk Sha