by the MicroCapital Team -

MICROCAPITAL BRIEF: L-IFT Studying Fairness of Presumptive Taxation in Ethiopia

Low-income Financial Transformation (L-IFT), a firm with teams in 13 countries in Africa and Asia, recently reported on a study it is performing with data being collected over one year from 140 small businesses in Ethiopia. The study addresses the way the Ethiopian government taxes enterprises that bring in less than ETB 500,000 (USD 8,900) per year. Rather than asking the businesses to submit financial data, the Ministry of Finance estimates their income based on external characteristics. The goal of the study is to investigate “the accuracy of

by Rohit Dayanand -

MICROFINANCE PAPER WRAP-UP: “Climate Risk and Financial Inclusion: A Regulatory Perspective on Risks and Opportunities;” by Peter Knaack, Peter Zetterli

This paper analyzes how climate change may impact the stability of financial systems and – particularly – access to financial services for groups that often have difficulty with such access, including micro- and small enterprises (MSEs) as well as low-income households and those in rural areas. The authors emphasize three challenges:

by Rohit Dayanand -

MICROFINANCE PAPER WRAP-UP: “Driving Digital Financial Services in Africa Through Merchant Acceptance of Digital Payments,” published by Alliance for Financial Inclusion (AFI)

This paper examines the growth and challenges of digital payment adoption by retailers in Africa, including “contactless payment (QR codes, tap to pay) [and] buy-now-pay-later” services. The authors note four main prerequisites for merchant adoption:

by Rohit Dayanand -

MICROFINANCE PAPER WRAP-UP: “Establishing a Financial Services Ombudsman in Mongolia: Experiences and Lessons from Armenia, Australia and Singapore,” by Massimiliano Gangi et al

This paper explores the potential of introducing an independent ombudsman system to address complaints by consumers against financial services providers (FSPs) in Mongolia by exploring existing dispute resolution systems in Armenia, Australia and Singapore.

Among the similarities of these three systems are:

by Rohit Dayanand -

MICROCAPITAL BRIEF: UN, EU Supporting SMEs Involved in Fisheries in Cambodia via Capfish-Capture Program

Capfish-Capture, a project organized by the UN Industrial Development Organization (UNIDO), is giving technical and financial support to small and medium-sized enterprises (SMEs) in Cambodia’s fishing industry to promote compliance with international food safety standards, allow SMEs to upgrade their machinery, connect SMEs with microfinance and venture capital, and increase academic research into post-harvest food technology. As of 2023, 28

by Renata Samadova -

MICROCAPITAL BRIEF: Activists Block Access to 3 Microfinance Institution Branches in Nepal, Accusing MFIs of Causing Over-indebtedness

Members of the Nepal Communist Party reportedly placed locks on the doors of two microfinance institution (MFI) branch offices in the western Nepali province of Sudurpaschim. Access to a third branch in the province also was blocked before police removed

by the MicroCapital Team -

MICROFINANCE EVENT: Navigating the Future of Impact Investing in Asia; May 9, 2023; Hong Kong, China

Attendees at this conference will debate investing “with the intention to generate social and environmental impact alongside a financial return” in Asia and worldwide. The topics to be covered include: 1) the current status of the sector; 2) methods for

by the MicroCapital Team -

MICROFINANCE EVENT: X Conferencia Centroamericana y del Caribe de Microfinanzas; March 20-22, 2023; Antigua, Guatemala

The tenth Central American and Caribbean microfinance conference is themed “Resilience and recovery of financial inclusion in the new reality.” The first morning is a forum for showcasing new technologies. The remaining two days will cover themes such as digital transformation, gender equity,

by the MicroCapital Team -

MICROCAPITAL BRIEF: CCAF-World Bank Study Finds Regulators in Africa Tops for Increasing Focus on Fintech, Cybersecurity Main Concern Worldwide

A recent survey of 128 financial regulators and supervisors worldwide found that just over half of respondents in low- and middle-income countries have been increasing their focus on financial technology (fintech) firms. The figure is about one out of three in

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “Banking in Layers: Five Cases to Illustrate How the Market Structure for Financial Services is Evolving;” by Aiaze Mitha, Faith Biegon, Peter Zetterli; Published by CGAP

This paper cites several financial service providers (FSPs) in emerging markets in exploring how recent advancements in digital technology have enabled new business models, transforming the market for financial services. The authors argue that these FSPs have deconstructed the financial services market into separate modules, allowing these modules to be reassembled in innovative ways. These modules include:

by the MicroCapital Team -

MICROCAPITAL BRIEF: Zambia Seeking to Leverage Government Infrastructure for Private FSPs to Increase Rural Financial Inclusion

The Zambian government recently announced a plan to give financial services providers access to government buildings in rural areas to expand their service footprints. The authorities are looking to make financial access points available in every district of Zambia, where 18

by Saulius Ramanauskas -

MICROCAPITAL BRIEF: Bank of Ghana, Emtech Solutions Launch Regulatory Sandbox to Encourage Innovation in Finance, Financial Inclusion

The Bank of Ghana (BoG), the country’s central bank, recently launched a regulatory sandbox – a mechanism for testing business models not covered by existing regulations, in partnership with the US-based financial technology (fintech) firm Emtech Solutions. Following a successful pilot phase, BoG adopted Emtech’s digital regulatory review and reporting platform, through which financial service providers can

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “Strategies to Optimise MSME-centred Supply Chain Finance Solutions: A Study of Ghana, Ethiopia and Nigeria;” by Adebiyi Fajemisin, Anifat Ibrahim and Raliat Sunmonu; Published by Accion

This report describes how several supply chain finance (SCF) solutions were deployed with the intent of benefiting micro-, small and medium-sized enterprises (MSMEs) in Ethiopia, Ghana and Nigeria. The authors deem these countries particularly “promising markets for MSME-led digital financial inclusion,” and they argue that SCF can provide

by Benjamin Greissman -

MICROCAPITAL BRIEF: Cambodia Microfinance Association, Social Performance Task Force (SPTF), Partner on Consumer Protection

Two NGOs, the Cambodia Microfinance Association (CMA) and the US-based Social Performance Task Force (SPTF), recently agreed to create a plan to foster “responsible growth, financial stability and customer protection in Cambodia’s microfinance and broader financial sector.” Elements of the plan include

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “Savings and Retail Banking in Africa: Unpacking the Customer Through Demand Side Data,” published by World Retail Savings and Banking Institute, MasterCard Foundation

This report offers three case studies on how financial services providers (FSPs) may expand and improve their usage of data to devise client-centric services and minimise account dormancy. The first case study is on the