by the MicroCapital Team -

MICROFINANCE PAPER WRAP-UP: “The Rise and Fall of Global Microcredit – Development, Debt and Disillusion;” Edited by Milford Bateman, Stephanie Blankenburg, Richard Kozul-Wright

This is a summary of a book edited by Milford Bateman, Stephanie Blankenburg and Richard Kozul-Wright; published by Routledge; September 2018; 290 pages; available for purchase at https://www.routledge.com/The-Rise-and-Fall-of-Global-Microcredit-Development-debt-and-disillusion/Bateman-Blankenburg-Kozul-Wright/p/book/9781138714120

The authors of this book discuss the history, concepts and adverse impacts of microfinance as it has been deployed in the Global South since the 1980s. Contrary to the intent of microcredit and associated economic policies to enable low-income people to benefit from entrepreneurship,

by Nicholas Galimberti -

MICROFINANCE EVENT: Center for Financial Inclusion (CFI) Hosting “Getting Inclusion Right;” November 1, 2018; Washington, DC, USA

In recognition of its tenth anniversary, the US-based Center for Financial Inclusion will hold this event to consider how it and its partners will move forward in their work to promote the availability and usage of appropriate financial services. The agenda will include discussion of how increased access to financial services can lead to improved quality of life for customers and what sorts of risks customers need protection against

by the MicroCapital Team -

MICROCAPITAL BRIEF: Latin American Agribusiness Development Corporation (LAAD) Borrowing $45m from IDB for SMEs in Farming Value Chains, Improving Impact Measurement

The Latin American Agribusiness Development Corporation (LAAD), a US-based funder of small and medium-sized enterprises (SMEs) in Latin America and the Caribbean, recently secured a seven-year loan of USD 45 million from the private-sector member of the US-based Inter-American Development Bank (IDB) Group, IDB Invest.

LAAD will use the fund to invest in SMEs active in “all stages of production, storage, technology and commercialization” in Chile, Colombia,

by the MicroCapital Team -

MICROCAPITAL BRIEF: Fundacion BBVA MicroFinanzas Continues Buying Equity in Microfinance Institution Financiera Confianza of Peru with responsAbility Transaction

Fundacion BBVA MicroFinanzas, which was launched by Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) in 1998, recently added to its shareholding in Financiera Confianza, a Peruvian microfinance institution (MFI) by purchasing the stake held by Switzerland-based responsAbility Investments. Although the size and price of the holding, which responsAbility began building in 2008, remains confidential, responsAbility reports that it earned “over three

by the MicroCapital Team -

SPECIAL REPORT: Finding Markets First, Adding Value Post-harvest to Engage Youth in Agriculture

At European Microfinance Week on Thursday,European Microfinance Week 2017 Ken Lohento of the Netherlands-based Technical Center for Agricultural and Rural Cooperation described successes engaging youth in agriculture through technology, even those with limited literacy. This can take the form of business tools to track spending or marketing as well as apps that help with pest management, for example. Even older “feature phones” can be used to receive information on markets and tips to optimize production. Among other efforts, Mr Lohento cited Agribusiness TV, which provides mobile-optimized video examples of youth profiting from agriculture, and a service in Senegal that connects owners of underused land with young people looking for acreage to till.

Dr Jonathan Agwe of the UN’s International Fund for Agricultural Development (IFAD) stated that youth rarely are motivated to engage in the planting and weeding of primary agriculture. “Certain elements of the value chain are more interesting to youth than others,” he said. Youth are more interested in secondary activities that are less labor-intensive, such as using machinery to process crops or vehicles to get products to market. Dr Agwe suggests first “locating a market that is paying premium prices” and then

by the MicroCapital Team -

MICROCAPITAL BRIEF: Oikocredit Sells Equity Stake in Microfinance Institution Financiera Confianza of Peru to Fundacion BBVA MicroFinanzas

Oikocredit, a cooperative based in the Netherlands, recently sold its stake in Financiera Confianza, a Peruvian microfinance institution (MFI), to Fundacion BBVA MicroFinanzas, which was launched by Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) in 1998. The size and price of the stake, which Oikocredit assembled in multiple purchases

by the MicroCapital Team -

MICROCAPITAL BRIEF: Incofin Sells Equity Stakes in Microfinance Institution Financiera Confianza of Peru, Affiliate of Fundacion BBVA MicroFinanzas

Belgium’s Incofin Investment Management (Incofin IM) recently informed MicroCapital that three of its funds, Incofin CVSO, Volksvermogen and Rural Impulse Fund I, have sold their stakes in Financiera Confianza, a Peruvian microfinance institution (MFI) affiliated with Fundacion BBVA MicroFinanzas, which in turn was launched by Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) in 2007. While the sizes and prices of the stakes, which included all Confianza shares held by Incofin IM funds, remain confidential, Incofin IM reports that the funds earned “over

by the MicroCapital Team -

MICROCAPITAL BRIEF: 16 Additional Institutions Commit to World Bank’s Goal of Achieving Universal Financial Access by 2020

The US-based multilateral World Bank Group (WBG) recently announced that 16 additional financial institutions have committed to partner to work toward “universal financial access” (UFA) by 2020, bringing the size of the group to 30 organizations. The new partners, which have committed to helping a total of 168 million people open new transaction accounts by 2020, are:

(1) the Aga Khan Agency for Microfinance, which operates in Africa, Asia and the Middle East;
(2) Ant Financial (Ali Baba Group) of China;

by Michelle Dold -

MICROFINANCE PAPER WRAP-UP: 2016 Brookings Financial and Digital Inclusion Project Report; by John Villasenor, Darrell West, Robin Lewis

“The 2016 Brookings Financial and Digital Inclusion Project Report Advancing Equitable Financial Ecosystems;” by John D. Villasenor, Darrell M. West and Robin J. Lewis; published by the Center for Technology Innovation at the Brookings Institution; August 2016; 146 pages;

by Michelle Dold -

MICROCAPITAL BRIEF: IFC Issues Taino II Local-currency Bond, Raising $4m for Banco ADOPEM’s Microfinance Efforts in the Dominican Republic

The International Finance Corporation, the private-investment arm of the World Bank Group, recently issued its “Taino II” bond in the amount of DOP 180 million (USD 4 million), the proceeds of which will go to Banco de Ahorro y Crédito ADOPEM SA, a microfinance institution formerly known as Asociación Dominicana para el Desarrollo de la Mujer that is a member of the Spain-based Fundación BBVA Microfinanzas.

by Kevin van den Brink -

MICROCAPITAL BRIEF: World Bank, Rabobank Foundation Seek to Replicate Consolidation of Agricultural Cooperatives in Albania

The World Bank, member of US-based multilateral World Bank Group, and the Rabobank Foundation, the “social fund” of the Dutch bank Rabobank, recently teamed up to consolidate agricultural cooperative financial institutions (CFIs), organizations set up by farmers to gain access to financing.

by Kevin van den Brink -

MICROCAPITAL BRIEF: Afluenta Raises $8m in Series B Equity Funding from International Finance Corporation, Elevar for Peer-to-Peer Lending in Latin America

Afluenta, an Argentina-based peer-to-peer (P2P) lending platform, recently announced it closed a series B funding round totaling USD 8 million from the International Finance Corporation (IFC), a member of the US-based World Bank Group that aims to increase economic growth in developing countries, and Elevar Equity, a “development-focused” private equity fund based in India.

by Kevin van den Brink -

MICROFINANCE PUBLICATION ROUND-UP: Trends in International Funding for Financial Inclusion; Inclusive Finance in India; Financial Regulation for Inclusion and Development in Latin America

“Current Trends in International Funding for Financial Inclusion;” by M. Soursourian, E. Dashi and E. Dokle; published by CGAP (Consultative Group to Assist the Poor); December 2015; 4 pages; available at: http://www.cgap.org/sites/default/files/Brief-Current-Trends-in-International-Funding-Dec-2015.pdf

by Kevin van den Brink -

MICROCAPITAL BRIEF: Overseas Private Investment Corporation (OPIC) Loans $250m to Bayport Management to Boost Microfinance in Africa, Latin America

The Overseas Private Investment Corporation (OPIC), a development finance institution backed by the US government, recently invested USD 250 million through a senior debt facility in Bayport Management Limited, Mauritius-based network of microfinance institutions (MFIs) [1].

by Meredith Steih -

MICROFINANCE PUBLICATION ROUND-UP: Mapping Pathways Out of Poverty; Marketing Insurance to Women; Sustaining Financial Inclusion in the Philippines

“Mapping Pathways out of Poverty: The State of the Microcredit Summit Campaign Report, 2015;” published by the Microcredit Summit Campaign; December 2015; available at: http://www.microfinancegateway.org/library/mapping-pathways-out-poverty-state-microcredit-summit-campaign-report-2015

by Arpita Sarkar -

MICROFINANCE PUBLICATION ROUND-UP: Global Findex Database 2014; PEP Report on Female Entrepreneurs in Nigeria; YouthSave Research Report 2015

“The Global Findex Database 2014: Measuring Financial Inclusion Around the World;” by Asli Demirguc-Kunt, Leora Klapper, Dorothe Singer and Peter Van Oudheusden; published by the World Bank; April 2015; 88 pages; available at http://www.worldbank.org/en/programs/globalfindex

The World Bank’s Global Findex Database 2014 indicates that between 2011 and 2014, 700 million people became accountholders for the first time at banks, via other financial institutions and with mobile money service providers, reducing the number of unbanked individuals by 20 percent.

by Arpita Sarkar -

MICROCAPITAL BRIEF: Eco.business Fund Loans $10m to Banco Davivienda Costa Rica to Promote Biodiversity

The Luxembourg-based eco.business Fund, which was launched in 2014, announced recently that it has lent USD 10 million to Banco Davividenda Costa Rica, a unit of Colombia’s Bolivar Group, for on-lending to companies that work in sectors such as agriculture, forestry and fisheries, and are certified for their sustainability and contribution to biodiversity by entities such as the Germany-based FairTrade International or the US-based Rainforest Alliance.