The Central Bank of Nigeria (CBN) recently revoked the operating licenses of 42 microfinance banks (MFBs) in the country. The Nigeria Deposit Insurance Corporation
MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lends $1.8m to Entrepreneur Financial Center (EFC) in Zambia
The Grameen Crédit Agricole (GCA) Foundation, whose head office is in Luxembourg, has granted its first loan to Entrepreneur Financial Center (EFC), a microfinance institution (MFI) located in Zambia. The three-year loan is in local currency equivalent to approximately USD 1.8 million. EFC Zambia serves micro-, small and medium-sized enterprises (MSMEs) and has eight branches. The MFI holds 20,000 savings and term deposit accounts and as of February 2021 has disbursed 51,000 MSME loans totaling ZMW 155 million (USD 7.2 million). It has 3,000 borrowers, nearly half of whom are women or organizations owned by women. In addition to business loans, the MFI offers
MICROCAPITAL BRIEF: Insurtech PasarPolis of Indonesia Raises $5m in Equity from International Finance Corporation (IFC) for Microinsurance
Indonesia-based insurance technology (insurtech) firm PasarPolis recently raised USD 5 million in equity from the International Finance Corporation (IFC), a member of the World Bank Group. The firm plans to use the fresh funds “to develop infrastructure to connect insurers, digital platforms and customers unserved by the traditional insurance sector” during and after the COVID-19 pandemic. The size of the stake
MICROCAPITAL BRIEF: India’s DeHaat Raises $30m in Equity for Agricultural Technology from Prosus Ventures, RTP Global, AgFunder, FMO, Omnivore, Sequoia India
DeHaat, an India-based agriculture technology (agritech) company, recently raised USD 30 million in Series C funding. Prosus Ventures, a technology investor based in the Netherlands, led the round, with RTP Global, a Russia-based venture capital firm, also investing in DeHaat for the first time. The following entities increased their stakes
MICROCAPITAL BRIEF: Incofin Lending $1m to EFC Uganda to Support Micro-, Small, Medium-Sized Enterprises; to Advise on Social Performance
Belgium-based Incofin Investment Management recently disbursed the initial USD 1 million of a “multi-million dollar” loan package for Entrepreneur Financial Centre (EFC) Uganda. EFC Uganda’s target market is micro-, small and medium-sized enterprises (MSMEs). Incofin made the investment through its agriculture-focused fund, agRIF. I&M Burbidge Capital, a Nairobi based company was the lead advisor to EFC Uganda for this transaction.
MICROCAPITAL BRIEF: IDB Invest, Jamaica Money Market Brokers (JMMB) Bank Strike $70m Deal to Boost SME Lending, Social Performance, Human Resources, Environmental Tracking
IDB Invest, a member of the US-based Inter-American Development Bank (IDB) Group, recently formed a partnership with Jamaica Money Market Brokers (JMMB) Bank whereby JMMB Bank will receive from IDB Invest: (1) support “on the development and implementation of an environmental and social management system;” (2) capacity building services related to human resources; (3) a five-year loan of USD 35 million earmarked for on-lending to small and medium-sized enterprises (SMEs); and (4) the arrangement of an additional lending package of USD 35 million funded by third-party banks. The funding will increase “the mat
MICROCAPITAL BRIEF: Energy Catalyst Community Seeks to Boost Commercialization of Solar, Wind, Battery, Payment, Other Innovations in Africa, Asia
Energy Catalyst, “a UK government-funded programme designed to accelerate access to sustainable energy” in Africa and Asia, recently launched its Energy Catalyst Community, offering a set of documents on commercializing energy innovations. The next phase of the project will allow companies funded by Energy Catalyst to collab
MICROCAPITAL BRIEF: Gaia Impact Fund Invests Equity in Innovex, Solar Technology Distributor in East Africa, DRC
Gaia Impact Fund, which is based in France and focuses on renewable energy, recently agreed to place a seed equity investment in Innovex, a Uganda-based technology firm that is active in solar power in five African countries. The terms of the investment have not been released.
Innovex was founded in 2015 by Douglas Baguma and David Tusubira. Its business is
MICROCAPITAL BRIEF: Latinia Invests in Fintech Ábaco, Microlender in Colombia, Mexico
Spain-based software vendor and financial technology (fintech) investor Latinia recently announced it has invested an unspecified amount of funds in Ábaco, a fintech active in Colombia and Mexico. Based in Colombia, Ábaco makes lending decisions using software that “identifies the behavior of delivery platform workers and freela
MICROFINANCE PAPER WRAP-UP: “Microcredit Regulation in Europe: An Overview;” by Cristina Ruesta, Nicola Benaglio; Published by European Microfinance Network
This paper provides an overview of the legislative environment for non-bank microfinance institutions (MFIs) in 24 countries in Europe. These institutions are not regulated in the same way as traditional banks, and the applicable legal frameworks vary significantly among countries. For example, there is no consistent maximum loan size. The term “microcredit” is used broadly, sometimes in conjunction with small equity investments and support mechanisms such as guarantees and technical assistance. Half of European MFIs include
MICROFINANCE EVENT: Africa Agri-Trade & Finance Forum; May 26, 2021; Nairobi, Kenya
Adiem Business Solutions is hosting this event for the fourth year, with a focus on “building [a] sustainable agribusiness economy.” It will address topics such as “smart agriculture in Africa,” “farmer management,” technology for agriculture, and the marketing and regulation of produce. Although the detailed agenda for this year’s edition has not been released, previous iterations included
MICROCAPITAL BRIEF: IDB Invest, DFC, FinDev Canada Loan $390m to Davivienda of Colombia for SMEs, Environmental Sustainability, Women
IDB Invest, a member of the US-based Inter-American Development Bank (IDB) Group; the US International Development Finance Corporation (DFC); and FinDev Canada, a subsidiary of government-owned Export Development Canada, recently issued subordinated loans totaling USD 390 million to Colombia’s Banco Davivienda for repayment over 10 years. The deal will “provide new financing for work
MICROFINANCE PAPER WRAP-UP: “Debt Relief in the Pandemic: Lessons from India, Peru and Uganda;” by Elisabeth Rhyne, Eric Duflos; Published by CGAP
In response to the economic effects of the COVID-19 pandemic, regulators in approximately 115 countries directed financial service providers (FSPs) to grant debt moratoria and restructuring to their borrowers. The authors of this paper reviewed surveys, interviews and other materials regarding
MICROCAPITAL BRIEF: EBRD Loans $4m to ProCredit Bank Skopje to Boost SMEs’ Quality Standards, Residential Energy Efficiency in North Macedonia
The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral institution, recently provided two loans to ProCredit Bank Skopje, which operates in North Macedonia and is owned by Germany-based ProCredit Holding. One loan, in the amount of EUR 1 million (USD 1.2 million),
MICROCAPITAL BRIEF: Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA) Raises $24m from BMZ via KfW
The German Federal Ministry for Economic Cooperation and Development, which is also known by its German acronym BMZ, recently invested EUR 20 million (USD 24.3 million) in the Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA), which supports micro-, small and medium-sized enterprises (MSMEs) in 19 countries. The investment, which BMZ issued through Kreditanstalt für Wiederaufbau (KfW), a government-backed development bank in Germany, is earmarked for the nine of REGMIFA’s target countries that participate in the G20 Compact with Africa. A total of 12 African countries are active in the Compact with
MICROCAPITAL BRIEF: Microsoft, IFC to Support Women Entrepreneurs, Forcibly Displaced Populations in Brazil with Business, ESG, Technology Training
Microsoft, a US-based technology firm, and the International Finance Corporation (IFC), a member of the World Bank Group, recently entered a partnership to deliver business and technology training in Brazil. This is to result in: (1) a publicly available workshop on January 26 regarding how to incorporate environmental, social and governance (ESG) elements into a young business; (2) technology train
MICROCAPITAL BRIEF: PBU Invests in SEAF Women’s Economic Empowerment Fund (SWEEF), Targeting SMEs in Indonesia, the Philippines, Vietnam
The UN Economic and Social Commission for Asia and the Pacific (ESCAP) and Small Enterprise Assistance Funds (SEAF), a US-based investment manager, recently closed the first round of funding of the SEAF Women’s Economic Empowerment Fund (SWEEF). While the amount of investment has not been disclosed, the Danish pen
MICROCAPITAL BRIEF: Agritech CropIn of India Raises $20m in Equity from Investors Including ABC World Asia, CDC Group, Pratithi Investment Trust
CropIn, an agricultural technology (agritech) firm based in India, recently raised USD 20 million in its Series C funding round. The lead investor is ABC World Asia, a private equity firm headquartered in Singapore. ABC World Asia CEO David Heng said the investment