Acumen Fund, a US-based nonprofit global venture fund that invests in entrepreneurial approaches to tackle poverty, recently made an equity investment of USD 1.9 million in the National Rural Support Program (NRSP) Microfinance Bank, a Pakistani microfinance institution (MFI) [1]. The State Bank of Pakistan, the nation’s central banking authority, recently granted a “business commencement certificate” for the nonprofit NRSP to operate its NRSP Microfinance Bank as a regulated MFI in all areas of Pakistan [2]. The International Finance Corporation (IFC) and Kreditanstalt fur Wiederaufbau (KfW) are also shareholders of the MFI. As of 2011, NRSP Microfinance Bank operates in 46 districts in Pakistan and has approximately 576,000 active borrowers and a savings base of PKR 600 million (USD 7 million).
By Jacqueline Foelster, Research Associate
About National Rural Support Program (NRSP): Founded in 1991, NRSP is a Pakistani rural development nonprofit that seeks to improve the quality of life for rural people through harnessing their potential to implement various development programs on their own. NRSP conducts its operations through four sectors: microfinance, human resource development, physical infrastructure and technology development and social sector services. In 2008, NRSP internally approved the transformation of its microfinance operations into a regulated microfinance bank. NRSP Microfinance Bank was thus registered and licensed in 2009. NRSP holds a 52 percent stake in the microfinance bank. Other investors include International Finance Corporation; Acumen Fund; and KfW, a German public-law institution. As of 2011, NRSP Microfinance Bank has operations in 46 districts in Pakistan, approximately 576,000 active borrowers and a savings base of PKR 600 million (USD 7 million). As of 2009, NRSP reported total assets of USD 81.5 million, return on assets (ROA) of 2.31 percent and return on equity (ROE) of 16.3 percent.
About Acumen Fund: Founded in 2001 with seed capital from the Rockefeller Foundation, Cisco Systems Foundation and individual philanthropists, the Acumen Fund is a nonprofit venture fund based in New York City. It advocates the use of entrepreneurial approaches to tackle poverty, focusing on early stage debt or equity investments in enterprises that provide low-income customers with access to healthcare, water, housing, alternative energy or agricultural inputs. Commitments generally range from USD 300,000 to USD 2.5 million with an expected payback timeframe of five to seven years.
Sources and Additional Resources:
[1] Acumen Fund Blog, April 6, 2011, “NRSP Launches Microfinance Bank in Partnership with Acumen Fund, IFC and KfW”, http://blog.acumenfund.org/2011/04/06/nrsp-launches-microfinance-bank-in-partnership-with-acumen-fund-ifc-and-kfw/
[2] MicroCapital.org Brief, March 25, 2011, “Pakistan’s National Rural Support Program (NRSP) Microfinance Bank Receives Permission to Operate as Regulated Entity”, https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-upgrades-license-of-national-rural-support-program-nrsp-microfinance-bank-from-district-to-nationwide-level-2/
MicroCapital.org Brief, November 25, 2008, “Acumen Fund Invests 2.8 Million into Development and Microfinance Programs in Pakistan”, https://www.microcapital.org/microcapital-story-acumen-fund-invests-28-million-into-development-and-microfinance-programs-in-pakistan/
MicroCapital Universe Profile: National Rural Support Program Microfinance Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Rural+Support+Program+Microfinance+Bank+%28NRSP+MF+Bank%29
MicroCapital Universe Profile: Acumen Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Acumen+Fund
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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