MICROCAPITAL BRIEF: Incofin Microfinance Funds Exit Equity Investments in Bolivia’s Banco FIE

Incofin Investment Management, a Belgium-based investment management firm focusing on microfinance institutions (MFIs) in developing countries, recently announced sales of some of its equity in Banco para el Fomento a las Iniciativas Económicas (Banco FIE), a Bolivian bank focusing on the financially excluded, to the bank’s incumbent shareholders.

MICROCAPITAL BRIEF: India’s Kotak Mahindra Bank Buying BSS Microfinance for $21m

Kotak Mahindra Bank (KMB), a private-sector Indian bank, recently announced plans to acquire BSS Microfinance, a Karnataka-based non-banking financial company run by the Bharatha Swamukthi Samsthe (BSS) Trust, for INR 1.4 billion (USD 21 million)

MICROCAPITAL BRIEF: Sanad Fund for MSME Announces $10m Loan to Egyptian AlexBank

The Sanad Fund for MSME (Micro Small and Medium Enterprises), a provider of loans and equity to financial institutions in the Middle East and North Africa, recently announced that it will lend an additional USD 10 million to AlexBank, an Egypt-based financial services institution, to on-lend to MSMEs in Egypt [1].

MICROCAPITAL BRIEF: Verdant Capital Arranges $3m Revolving Credit Facility for Zambia’s Pan African Building Society (PABS)

Verdant Capital, a corporate finance firm serving Africa, recently informed MicroCapital that it has arranged a revolving credit facility in the amount of USD 3 million for the Pan African Building Society (PABS), a deposit-taking, non-banking financial institution operating in Zambia.

MICROFINANCE PUBLICATION ROUND-UP: Role of Impact Investing in Achieving UN Sustainable Development Goals; Microfinance Investment Vehicle Survey; Lessons from Tanzania’s Digitization Efforts

“Achieving The Sustainable Development Goals: The Role of Impact Investing;” published by The Global Impact Investing Network; September 12, 2016; 9 pages; available at https://thegiin.org/knowledge/publication/sdgs-impinv

This report profiles impact investors that have leveraged the United Nations (UN) Sustainable Development Goals (SDGs) for the following purposes: (1) as a framework to communicate their social impact goals; (2) to develop new or realign existing investment strategies and; (3) to attract capital from private investors that are new to impact investing.

MICROCAPITAL BRIEF: The MasterCard Foundation, Root Capital to Invest $5.2m in Early-Stage Agricultural Businesses in West Africa

Root Capital, a US-based nonprofit investment fund, and The MasterCard Foundation, a Canadian organization founded by the US-based payments firm MasterCard Worldwide, recently announced a partnership aimed at raising incomes for 300,000 smallholder farmers in West Africa.

MICROCAPITAL BRIEF: Rwanda’s New Faces New Voices Raising $20m for Women’s Microfinance Fund, 25% From Selling Shares to Members

New Faces New Voices (NFNV), a group of advocates from 15 African countries focusing on expanding financial inclusion for women, recently announced plans to raise RWF 16 billion (USD 20 million) for a fund to expand women’s access to finance.

MICROCAPITAL BRIEF: EFSE Loans $2.3m to Kosovo’s AFK for On-Lending to Rural Microfinance Clients

The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle, recently announced a senior loan of EUR 2 million (USD 2.3 million) to Agjencioni për Financim në Kosovë (AFK), a non-banking microfinance institution operating in Kosovo.

MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loaning up to $2m to Arvand of Tajikistan for On-lending to Micro- and Small Enterprises (MSEs)

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral institution, recently agreed to provide loan funds of up to TJS 15.7 million (USD 2 million) to Arvand, a Tajikistan-based microfinance institution (MFI), for on-lending to local micro- and small enterprises (MSEs).

MICROFINANCE PAPER ROUND-UP: Managing Risks for Smallholders in Africa, Financing Shortfall for Women-owned Enterprises in Indonesia, Perspectives of Banks in Emerging Countries on Financial Inclusion

“Finance for Smallholders: Opportunities for Risk Management by Linking Financial Institutions and Producer Organisations;” by J de la Rive Box et al; published by the Food & Business Knowledge Platform, Agri Pro Focus and the Platform for Inclusive Finance NPM; May 2016;  22 pages; available at: http://www.inclusivefinanceplatform.nl/documents/npm%20summary%20report%20finance%20for%20smallholders.pdf

MICROCAPITAL BRIEF: Green for Growth Fund to Loan $2.2m to Microfinance Institution Alter Modus of Montenegro for Energy Efficiency for Housing, Business

The Green for Growth Fund (GGF), a Luxembourg-based investment vehicle that supports energy-efficiency (EE) initiatives in Southeast Europe, recently announced that it will invest EUR 2 million (USD 2.2 million) in debt in Alter Modus, a Montenegro-based microfinance institution (MFI).

MICROCAPITAL BRIEF: Tigo Tanzania Distributes $2.5m in Profit to Customers, Agents of Digital Payment Platform Tigo Pesa

Tigo Tanzania, a brand of Swedish telecom provider Millicom, recently announced it paid TZS 5.6 billion (USD 2.5 million) of its profits to Tigo Pesa users.

MICROCAPITAL BRIEF: Tanzania’s National Microfinance Bank Lists $18m in Bonds on Dar Es Salaam Stock Exchange

The National Microfinance Bank (NMB), an institution backed by the government of Tanzania, recently announced that it has listed TZS 41.4 billion (USD 18.8 million) in three-year retail bonds on the Dar es Salaam Stock Exchange (DSE), the listing surpassed its initial retail bond target by 107 percent.

MICROCAPITAL BRIEF: India’s Suryoday Microfinance Raises $15m in Equity as Aavishkaar Goodwell Exits

Suryoday Micro Finance Private Limited , a non-banking finance company providing microfinance services in India, recently raised INR 1 billion (USD 15 million) from investors including the Infrastructure Development Finance Company (IDFC) Bank; ASK Pravi; the Housing Development Finance Corporation (HDFC) Standard Life Insurance; Arpwood Investment Advisors; Kiran Vyapar, the investment arm of LN Bangur Group; Polaris Banyan Holding and Dr. Aravind Srinivasan [2].

MICROCAPITAL BRIEF: Developing World Markets Closes Debt Investments Totaling $8.3m in Armenia, Colombia, India, Nicaragua

Developing World Markets (DWM), a US-based asset manager and investment bank, recently announced that it issued loans in February and March 2016 to four unidentified financial institutions serving microentrepreneurs, including a Colombian bank and non-banking financial institutions (NBFIs) in Armenia, India and Nicaragua.

MICROFINANCE PUBLICATION ROUND-UP: Household Responses to Village Bank Access in Laos; Mobile Banking in Kenya; The Role of Banks in Driving Financial Inclusion

“Household Responses to Access to Finance Through GIZ-AFP Village Banks;” published by the Laos-Australia Development Learning Facility; February 2016; 50 pages; available at: http://ladlf.org/images/publications/030516_LADLF_GIZ_HH_Response_to_A2F_Final.pdf

MICROCAPITAL BRIEF: Controversy Brews as For-Profit Fintech Provider MyBucks Buys 6 African Microfinance Organizations from Nonprofit Opportunity International

The sale of microfinance institutions (MFIs) in Ghana, Kenya, Malawi, Mozambique, Tanzania and Uganda over the first half of 2016 by US-based NGO Opportunity International to Luxembourg-based financial technology company MyBucks has raised concerns both that these MFIs’ clients could be negatively impacted and that these transactions signal that the sector’s overall direction has shifted toward profit-making.