Among a sample of 27 financial institutions in Africa, Asia and Latin America, Ms Schicks finds that commercial banks drive more innovation in the digitalisation of financial services, relative to the other institutions sampled. These other financial services providers are microfinance institutions (MFIs) with banking licenses and non-bank financial institutions (NBFIs) that provide leasing services to
MICROCAPITAL BRIEF: Telecom iQSTEL Launches Fintech Division Offering Microfinance Payment Services for Migrants
The US-based telecommunications firm iQSTEL recently launched a financial technology (fintech) system allowing customers to pay utility bills electronically as well as to send and receive funds
MICROCAPITAL BRIEF: Malaysia Digital Economy Corporation (MDEC), Mastercard Partner on E-money, Payment Cards, Islamic Fintech, Mentoring, Technology Training for Girls
The Malaysia Digital Economy Corporation (MDEC), a government-controlled entity, recently signed a memorandum of understanding with Mastercard, a US-based payments company, to “facilitate the rollout of Mastercard payments and business technologies” in Malaysia. The goals of the agreement include to:
SPECIAL REPORT: Saving(s) Microfinance in a Pandemic – and Beyond
Back
in the distant pre-pandemic memory, e-MFP launched the European Microfinance Award (EMA) 2020 on Encouraging Effective & Inclusive Savings. While clearly an important topic, with innovations across the sector that are ripe for exposure and commendation, little did we know just how relevant a topic it would turn out to be.
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months later, the sector has suffered – and continues to reel from – challenges on multiple fronts: to clients, financial services providers, investors, support providers and others, all trying to mitigate losses and preserve the important gains made over recent decades.
Among the clearest lessons revealed by this difficult year is that
MICROFINANCE PAPER WRAP-UP: “Digital Technology in Social Assistance Transfers for COVID-19 Relief: Lessons from Selected Cases;” by Alan Gelb, Anit Mukherjee; Published by Centre for Global Development
In this paper, the authors analyze the use of digital technology to implement government-to-person (G2P) social transfer programs in response to the COVID-19 pandemic in Brazil, Colombia, India, Namibia, Pakistan, South Africa and Togo. The analysis is organized around the following steps in the process:
MICROCAPITAL BRIEF: UNIDO Incubates Agro-processing Training Center, Moving Groundnut, Sesame Farmers Up Oils Value Chain in South Sudan
The UN Industrial Development Organization (UNIDO) recently handed over a program for developing agricultural value chains to local managers in South Sudan. Since its launch in 2019, 250 farmers in the country have enrolled, learning entrepreneurship skills and
MICROCAPITAL BRIEF: Brazil Loosens Eligibility Requirements, Streamlines Online Microloan Application to Assist Small Businesses During COVID-19 Pandemic
Brazil’s Conselho Monetário Nacional (CMN), the country’s National Monetary Council, recently raised the revenue limit for firms to be eligible for microloans in an effort to assist more small businesses struggling as a result of the COVID-19 pandemic. The maximum income had been
MICROCAPITAL BRIEF: IFC Lending Banco Agricola $330m for Women, MSMEs, “Climate-smart” Investments, COVID-19 Relief in El Salvador
The International Finance Corporation (IFC), a member of the World Bank Group, recently issued a financing package of USD 330 million to Banco Agricola of El Salvador to support micro-, small and medium-sized enterprises (MSMEs), including those owned by women; housing for people with lower incomes; and “climate-smart” investments, including in buildings with lower environmental impacts. About 10 percent of the funding is
MICROCAPITAL BRIEF: IDB Loans $750m to BNDES to Support MSMEs in Brazil During COVID-19 Pandemic
The Inter-American Development Bank (IDB), whose membership comprises 48 nations, recently loaned USD 750 million to Banco Nacional de Desenvolvimento Econômico e Social (BNDES), the Brazilian government’s development bank, to support micro-, small and medium-sized enterprises (MSMEs) in Brazil that have seen significant drops in revenue during the COVID-19 pandemic. The loan is expected to enable
MICROCAPITAL BRIEF: Bank of Abyssinia Launches 5 “Interactive” Teller Machines in Ethiopia, Allowing for Remote Account Opening, Access to Tellers via Video
Bank of Abyssinia, a financial services provider in Ethiopia, recently introduced terminals called “Interactive Teller Machines” (ITMs) that allow customers to open or close accounts, apply for loans, access tellers via video, transfer funds within Ethiopia, and withdraw and deposit cash.
MICROFINANCE PAPER WRAP-UP: “Has the Pandemic Spared Cambodia? Liquidity Considerations of Cambodia’s Large MFIs,” by Sanjay Sinha, Published by M-CRIL
The purpose of this paper is “to enable understanding of the finances of [microfinance institutions] in Cambodia and the potential role and expectations of investors in supporting the microfinance ecosystem of the country.” While other sources have sounded alarms
MICROCAPITAL BRIEF: Easypaisa of Pakistan Partners with NADRA, Enabling Access to 12k Kiosks; Receives $45m in Equity from Ant, Telenor
Easypaisa, a digital payment platform owned by Pakistan’s Telenor Microfinance Bank (TMB), recently partnered with government-backed National Database and Registration Authority (NADRA) Technologies Limited,
MICROCAPITAL BRIEF: Greenlight Planet Secures $90m in Debt, Equity for Pay-as-you-go Solar in Africa, South Asia
Greenlight Planet, a for-profit social business with offices in Kenya, India and the US, recently secured USD 90 million in debt and equity to expand its sales of pay-as-you-go (PAYG) solar products. The investors are
MICROCAPITAL BRIEF: Executives of Uganda Microfinance Support Centre Jailed on Charges of Fraud, Embezzlement of $3m
Leaders of the Ugandan government’s Microfinance Support Centre (MSC) recently were released on bail after being held in prison on charges relating to the theft of UGX 10.8 billion (USD 2.9 million) that had been supplied by the Ugandan government for disbursal to the Uganda Teachers’ Cooperative Savings and Credit Union (UTC). The allegations consist of embezzlement and conspiracy to defraud,
MICROCAPITAL BRIEF: Swedfund to Loan $12m to SunFunder Solar Energy Transformation (SET) Fund
Swedfund, the Swedish government’s development finance institution, recently pledged an investment of USD 12 million to the Solar Energy Transformation (SET) Fund, which was launched by SunFunder, a Kenya-based financier of solar energy firms in developing countries. SET is a nine-year, USD 70 million debt fund that aims
SPECIAL REPORT: Frankfurt School Development Finance e-Campus: A Decade of Online Education
When we were getting ready to launch our first online course, I was full of hope and optimism. But I must admit, I was rather disappointed after the launch – I had expected the initial enrollment to be higher. This was when we realised that we needed to prove that online education is just as effective as traditional classroom learning – and that it even comes with its own unique advantages.
Ten years ago, the Development Finance e-Campus of the Frankfurt School of Finance and Management consisted of just one course, Certified Expert in Microfinance. A decade later, that course has become an industry standard, and our portfolio spans 13 Certified Expert courses covering the fields of inclusive and green finance, contributing to 14 of the UN Sustainable Development Goals. We also have added a full-fledged online Master Programme on Sustainable Finance as well as two Diplomas in
MICROCAPITAL BRIEF: Isbank Georgia, IFC Agree on Cross-currency Interest Swaps, $10m Loan for SMEs
Isbank Georgia, a subsidiary of Turkey-based bank Türkiye Is Bankasl, recently agreed to borrow USD 10 million from IFC, a member of the World Bank Group. Isbank is to use the funds to on-lend primarily to
MICROCAPITAL BRIEF: Invest In Visions Mikrofinanzfonds Lends $36m to Indian MFIs Asirvad Microfinance, Sonata Finance
Invest In Visions Mikrofinanzfonds, a fund managed by Germany-based Invest In Visions (IIV), recently made loans totaling EUR 30 million (USD 35.6 million) to two Indian microfinance institutions, Asirvad Microfinance and Sonata Finance. Asirvad received EUR 25 million (USD 29.6 million) and Sonata received EUR 5 million (USD 5.9 million). Both microfinance institutions serve low-income female customers in India,