Grameen Foundation, a US-based nonprofit, has announced that it will increase its efforts to improve human capital management strategies at socially-focused microfinance institutions (MFIs) in India with USD 550,000 in funding from Citi Foundation, the charitable arm of global financial services provider Citigroup; The McGraw-Hill Companies, a US-based owner of rating agency Standard and Poor’s; and The Capital Group, a US-based group of investment management companies [1].
Alex Counts, President and Chief Executive Officer of Grameen Foundation, explains the efforts as follows: “The microfinance industry is at a critical juncture in its development and this moment provides an important opportunity to reexamine practices especially in areas such as human capital management that make up a major cost center for the sector, and could translate into greater impact on poverty and better overall performance [1].”
Grameen Foundation India Private Limited (GFI), a wholly-owned subsidiary of Grameen Foundation, will spearhead the work [1]. Support from Citi Foundation will focus on increasing employee retention and effectiveness, in the context of client protection. Funding from The McGraw-Hill Companies and The Capital Group Companies will focus on leadership development among mid-level managers of microfinance institutions (MFIs) [1].
By: Alexandra Pattee, Research Associate
About Grameen Foundation: The Grameen Foundation, a nonprofit organization based in Washington, DC, aims to help microfinance institutions throughout the world replicate the microfinance model of the Grameen Bank, a Bangladeshi microfinance institution. It provides financial, technological and managerial support to provide new business opportunities and telecommunication services for poor people in rural areas. Though the Grameen Foundation is independent of the Grameen Bank, Muhammad Yunus, the founder of the Grameen Bank, serves on the foundation’s Board of Directors. Grameen Foundation reported total assets of USD 33.1 million as of March 31, 2010.
About Citi Foundation: The Citi Foundation is the charitable arm of global financial services provider Citigroup. It provides grants and guarantees focusing on the areas of microfinance, small and growing businesses, education, asset building and neighborhood revitalization. Citi Foundation has total assets of USD 65.8 million, of which, USD 12.3 million is allocated to 152 total active investments as of 2009.
About The McGraw-Hill Companies: The McGraw-Hill Companies is a US-based, publicly traded corporation that owns rating agency Standard and Poor’s. Its primary areas of business are education, publishing, broadcasting and financial and business services. McGraw-Hill Companies’ net income in 2009 was USD 750 million.
About The Capital Group: The Capital Group is a US-based group of investment management companies. The Capital Group companies manage the investments of individuals and large institutions through mutual funds, pooled investment funds and separately managed accounts. The Capital Group companies include Capital International, Capital Guardian, Capital Research and Management, American Funds and Capital Bank and Trust.
About Grameen Foundation India Private Limited (GFI): Grameen Foundation India (GFI), a wholly-owned subsidiary of Grameen Foundation, is a social business that focuses on promoting access to microfinance and technology services in keeping with the principles of Dr. Muhammad Yunus, by providing technology, human resource management tools and practices, and new business models to poverty-focused social enterprises across the country.
Sources and Resources:
[1] Grameen Foundation Press Release: “Grameen Foundation Increasing Support for Strategic Human Capital Practices in Indian Microfinance Sector”,http://www.grameenfoundation.org/press-releases/grameen-foundation-increasing-support-strategic-human-capital-practices-indian-microf
MicroCapital.org Article, November 24, 2010, “Grameen Foundation Launches Upgraded Mifos Cloud Service for Microfinance Institutions (MFIs) in India”, https://www.microcapital.org/microcapital-brief-grameen-foundation-launches-upgraded-mifos-cloud-service-for-microfinance-institutions-mfis-in-india/
MicroCapital.org Article, February 3, 2011, “Citi Foundation, Russian Microfinance Center to Train MFIs to Train their Borrowers in Entrepreneurship”, https://www.microcapital.org/microcapital-brief-citi-foundation-russian-microfinance-center-to-train-mfis-to-train-their-borrowers-in-entrepreneurship/
MicroCapital’s Microfinance Universe: Grameen Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Foundation
MicroCapital’s Microfinance Universe: Citi Foundation,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Citi+Foundation
MicroCapital’s Microfinance Universe: The McGraw-Hill Companies, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+McGraw-Hill+Companies
MicroCapital’s Microfinance Universe: The Capital Group,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+Capital+Group
MicroCapital’s Microfinance Universe: Grameen Foundation India Private Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Foundation+India+Private+Limited
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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