The authors of this report reviewed evidence of the effects of microfinance institutions (MFIs) on poverty in developing economies. Although a number of
Tag: SMEs
MICROCAPITAL BRIEF: Bank of Africa, Sanad Fund Deploying $27m for SME Finance in Morocco
Bank of Africa, which is based in Morocco and serves 32 countries, recently agreed to borrow EUR 25 million (USD 27 million) from the Luxembourg-domiciled Sanad Fund for MSME to on-lend to small and medium-sized enterprises (SMEs) in Morocco. Sanad is supporting the loan with
MICROFINANCE PAPER WRAP-UP: “The Financial Inclusion Compass 2022,” by Sam Mendelson, Published by e-MFP
This report outlines global trends and areas of future focus in the field of financial inclusion, based on a survey of 112 professionals from 46 countries, representing financial service providers (FSPs), infrastructure organisations and consultancies as well as researchers and investors.
In the quantitative section of the survey, participants were asked to rank what they believe to be the most important
SPECIAL REPORT: Inclusive Finance in Africa Amid the Current Food and Climate Crises, in Anticipation of SAM 2023 in West Africa
In anticipation of SAM 2023 (Semaine Africaine de la Microfinance 2023), its organisers convened a panel discussion on October 19 as part of Accion’s Financial Inclusion Week. The panel illustrates the commitment of SAM’s organisers to nurture ongoing dialogue on the issues faced by the inclusive finance sector. The objective was to share and question the strategies being used to address issues faced by the agricultural sector, which remains one of the least financed due to investors’ perception of it as high-risk.
Climate change coupled with social and political turmoil is negatively impacting agricultural value chains in particular and global food security in general. The conflict between Ukraine and Russia is lowering food security and agricultural production in many developing countries, as the warring nations are two of the largest exporters of key agricultural commodities such as wheat, corn, sunflower oil and fertiliser. The Horn of Africa could suffer the worst effects of the war because of its ongoing food crisis following three years of severe drought, the COVID-19 pandemic and protracted local conflicts. Market volatility and rises in energy costs, input costs, interest rates and perceived risk are expected to lead to higher costs of borrowing, credit crunches, and unmet working capital and liquidity needs.
Addressing these issues at the Financial Inclusion Week panel were:
– Jacques Afetor, Executive Director of Assilassimé Solidarité, a Togolese MFI supporting
MICROCAPITAL BRIEF: Huruma Fund Expands Impact to Mexico, Lending $15m to Mega, ProCredito for Agricultural SMEs
Spain’s Gawa Capital, manager of the public-private Huruma Fund, recently disbursed the fund’s first investments in Mexico, lending EUR 12 million (USD 12 million) to Mega and EUR 3.6 million (USD 3.6 million) to ProCredito, financial services providers whose clients include many agricultural small and medium-sized enterprises (SMEs). Both investees are active in lending intended to minimize the effects of
MICROCAPITAL BRIEF: Grupo Mega Nets $10m for SME Leasing in Mexico via Bond Sale to MicroVest
MicroVest, a debt-focused asset manager owned by US-based DAI Global, recently purchased USD 10 million in bonds from Mexico’s Grupo Mega to support leasing by small and medium-sized enterprises (SMEs), which can help SMEs “remain capital-light [in a way] that
MICROCAPITAL BRIEF: ASN Bank Lends EFSE $50m for Micro-, Small Enterprises; Households in Europe, Western Asia
ASN Bank, a retail banking member of the Netherlands’ de Volksbank, recently agreed to purchase EUR 50 million (USD 50 million) in notes from the European Fund for Southeast Europe (EFSE), which provides investments and technical assistance to microfinance institutions and other lenders in Eastern and Southeastern Europe as well as Western Asia.
The director of ASN’s sustainable finance team, Yvonne van Hoof, explained, “Via this investment, we are ultimately able to improve the quality of
MICROCAPITAL BRIEF: Silatech, Gojo Partner to Provide Digital Finance to Youth-led Enterprises in Cambodia, India, Sri Lanka
The Qatar-based social enterprise Silatech recently launched a three-year partnership with the Japanese microfinance investor Gojo & Company with the aim of supporting 90,000 youth in Cambodia, India and Sri Lanka with digital financial services to facilitate the founding and expansion of micro-, small and medium-sized enterprises (MSMEs). Among the strategies of the partnership is
MICROCAPITAL BRIEF: PAIDEK of DRC, MicroLoan Foundation Zambia Borrow $1m from Grameen Crédit Agricole for Microfinance in Africa
The Luxembourg-based Grameen Crédit Agricole (GCA) Foundation recently announced it has issued a loan of approximately USD 550,000 to Programme d’Appui aux Initiatives de Développement Economique du Kivu (PAIDEK) of the Democratic Republic of Congo (DRC) and
MICROFINANCE EVENT: Global SME Finance Forum; September 19-23, 2022; Phnom Penh, Cambodia
The Ninth Global SME Finance Forum will address the effects of digitalization on the financial sector, including the potential for digital transformation to facilitate “inclusive, sustainable, and responsible finance” for microenterprises as well as small and medium-sized enterprises (SMEs). The first day of the event offers
MICROCAPITAL BRIEF: EBRD, EFSE, GGF Lending $9m to Bank Lviv to Support SMEs in Ukraine in Adjusting to War
The European Bank for Reconstruction and Development (EBRD), a multilateral institution, is arranging a loan package of up to EUR 10 million (USD 10 million) for Ukraine’s Bank Lviv to support small and medium-sized enterprises (SMEs). The loan fulfills part of a pledge by EBRD to invest EUR 1 billion (USD 1 billion) this year into the Ukrainian economy to
MICROCAPITAL BRIEF: Silicon Badia, Sanad Fund for MSME, Arab Bank Accelerator, Sunny Side Invest Equity in Cartona to Digitize Food Supply Chain in Egypt
Four entities recently placed equity in Cartona, a virtual marketplace connecting Egyptian food wholesalers and distributors, for the first time: US-based Silicon Badia; Sanad Fund for MSME, which was founded by Germany’s KfW Development Bank to invest in micro-, small and medium-sized enterprises (MSMEs); Jordan-based Arab Bank Accelerator; and Egypt-based Sunny Side Venture Partners. Silicon Badia
MICROCAPITAL BRIEF: DFC, Citibank Invest $300m in Access Bank for SME Financing in Nigeria
The US government’s International Development Finance Corporation (DFC) recently deployed USD 280 million in favor of Nigeria’s Access Bank to support about 4,000 small and medium-sized enterprises (SMEs), with a focus on women-owned and “climate-change focused” businesses. US-based Citibank is
MICROCAPITAL BRIEF: EIB Supporting Technical Assistance for Banque Misr on Financial Inclusion for SMEs, Post-COVID Growth in Egypt
Banque Misr, a financial institution owned by the government of Egypt, recently agreed to work with the EU’s European Investment Bank (EIB) on technical assistance efforts to: (1) enhance Banque Misr’s risk management and company-wide best practices regarding lending to small and medium-sized enterprises (SMEs); and (2) create new financial services through which Banque Misr can support
MICROCAPITAL BRIEF: Fintech Sava Raises $1.8m in Equity to Launch Spending Management Platform in South Africa
Sava, a firm in South Africa, recently raised USD 1.8 million in “pre-seed funding” for its digital platform focused on “expenditure management and reconciliations” for small and medium-sized enterprises (SMEs) in Africa. The company plans to
MICROCAPITAL BRIEF: DFC, Gazelle Finance Announce Technical Assistance Funding for SMEs Displaced from Ukraine to Georgia by War
The US International Development Finance Corporation (DFC) and Georgia-based Gazelle Finance recently launched a facility to assist Ukrainian enterprises that have been displaced to Georgia as a result of the war between Russia and Ukraine. In particular, the funding is for technical assistance for small and medium-sized enterprises (SMEs). DFC CEO Scott Nathan noted the intent of the facility to
MICROCAPITAL BRIEF: Visa, Davivienda Announce Commitments to Digitize Financial Services in Central America
Visa, a US-based financial services company, recently announced its commitment to further “digital and financial inclusion” in Central America as a response to the US government’s Call to Action for Northern Central America. Visa plans to invest USD 270 million to
MICROCAPITAL BRIEF: MicroVest Loans $9m to Acleda Bank via IFC Syndication to Support SMEs in Cambodia, with Focus on Women Entrepreneurs
US-based asset manager MicroVest is lending USD 9 million for five years to Acleda Bank, a publicly traded firm that operates in three countries, to support Acleda’s provision of financial services to small and medium-sized enterprises (SMEs) in Cambodia, particularly those owned by women. The investment is part of a syndication for Acleda by the World Bank Group’s International Finance Corporation (IFC) that is to include up to USD 100 million each from IFC and