by the MicroCapital Team -

MICROCAPITAL BRIEF: Kookmin Paying $603m to LOLC for 70% Equity Stake in Microfinance Institution Prasac of Cambodia

South Korea’s KB Financial Group, whose name derives from its Kookmin Bank, recently issued the first of two tranches it agreed pay for 70 percent of the shares of Prasac, a microbank in Cambodia. Sri Lanka’s LOLC Group, whose name comes from the former Lanka Orix Leasing Company, will take in a total of USD 603 million on the deal, which has been approved by all pertinent regulators. Prasac has 180 branches and 150 automated teller machines (ATMs). As of 2019, it had total assets of USD 3.1 billion, USD 1.8 billion in deposits and a loan portfolio of USD 2.5 billion outstanding to 417,000 borrowers.

KB President Hur Yin said, “With long-term plans to turn Prasac into a

by Chee Meng Ng -

MICROCAPITAL BRIEF: Cross-border Payment Settlement Network EMQ Expands Into Africa

EMQ, a financial settlement network based in Hong Kong, recently announced its expansion into Africa, including the nations of Ethiopia, Ghana, Kenya, Nigeria and Uganda. The firm facilitates access to “millions” of mobile wallets in Asia and Europe, and it plans to expand into

by Jolene Khor -

MICROFINANCE PAPER WRAP-UP: “Landscape of Microinsurance in Africa 2018,” published by Microinsurance Network

By Alice Merry, published by the Microinsurance Network, November 2019, 27 pages, available at https://microinsurancenetwork.org/sites/default/files/Landscape%20of%20Microinsurance%20in%20Africa%202018_LR.pdf

This iteration of the Landscape series provides insights into the microinsurance industry based on data from 2017 supplied by 100 insurers in 16 countries in Africa, focusing on changes since a similar study published in 2015. Overall, as of December 2017,

by the MicroCapital Team -

MICROCAPITAL BRIEF: Engie Acquires Mobisol, Provider of Pay-as-you-go Solar Systems in East Africa

Engie, a France-based, “low-carbon” energy firm, recently agreed to acquire Mobisol, a Germany-based provider of solar-powered products in Kenya, Rwanda and Tanzania, for an undisclosed price. Among the reasons Engie is pursuing the transaction is the opening for “extending its customer base from rural to urban areas.”

Mobisol provides solar-powered products such as lights and telephone chargers that customers pay for via mobile payments over as many as four years. When a buyer wishes to delay a payment, Mobisol can temporarily disable the device remotely.

Engie’s holdings include: (1) Fenix International, which has delivered solar home power systems to

by Eugene DeCosse -

MICROCAPITAL BRIEF: Flutterwave, Alibaba Group’s Alipay to Offer Digital Payments Between Africa, China

Flutterwave, a US-based business-to-business (B2B) payments service that focuses on Africa, recently began collaborating with Alipay, a payments unit of the Chinese technology conglomerate Alibaba Group, to provide digital payments from Africa to China and

by Jolene Khor -

MICROCAPITAL BRIEF: AfDB Launches Africa Digital Financial Inclusion Facility in Effort to Bring 332m People – Mostly Women – into Formal Economy

The African Development Bank (AfDB), a multilateral institution providing loans and grants to governments and private companies on the continent, recently announced the launch of the Africa Digital Financial Inclusion (ADFI) facility, a “financing facility designed to accelerate digital financial inclusion across Africa, with a goal of ensuring that 332 million more Africans, of whom 60 percent

by the MicroCapital Team -

SPECIAL REPORT: Advans Cote d’Ivoire Wins $113k European Microfinance Award for Inclusive Finance Through Technology

Last European Microfinance Platformnight, Advans Cote d’Ivoire (CI), a microfinance institution in Cote d’Ivoire, won the European Microfinance Award 2018, which was themed “Financial Inclusion through Technology” and includes a cash prize of EUR 100,000 (USD 113,000). Advans CI, a member of the Advans Group, offers payment, saving and credit services that can be linked to MTN mobile money accounts. The cocoa farmers who are customers of Advans CI were having trouble with traceability and safety issues related to being paid by cooperatives in cash. They were also having trouble saving money from harvest time until the school year begins, resulting in low school enrollment. Advans CI responded by creating a

by the MicroCapital Team -

SPECIAL REPORT: “Aadhaar: Lessons for the African Continent?”, by Edmund Higenbottam of Verdant Capital

In 2009, India launched the world’s largest IT project, i.e. the Aadhaar biometric identification program. The program is intended to drive social and financial inclusion, reform public-sector service delivery, improve fiscal management, increase convenience, etc. An Aadhaar number can be viewed as a permanent financial address. Considering that almost the entire Indian population is now enrolled in Aadhaar – the underprivileged as well as the rich – it also can be viewed as a tool for justice and equality.

The program consists of

by the MicroCapital Team -

MICROCAPITAL BRIEF: Branch International Raises $70m in Debt, Equity from Trinity, Victory Park, IFC, Andreessen Horowitz, CreditEase to Expand Digital Financial Services in Africa, India

Branch International, a for-profit lender to 1 million mobile-phone subscribers in Kenya, Nigeria and Tanzania, recently raised USD 70 million with the goal of expanding within Africa, entering the Indian market, and launching savings and transfer services. US-based Trinity Ventures led the fundraising round, and its general partner, Schwark Satyavolu, will take a position on the board of directors of Branch. While the amounts invested by each entity have not been released, the other investors are US-based Victory Park Capital, the World Bank Group’s International Finance Corporation, US-based venture capital firm Andreessen Horowitz, and China-based CreditEase Fintech Investment Fund. Branch’s other shareholders are listed at https://www.branch.co/about.

Branch evaluates the creditworthiness of applicants by harvesting data from their phones: GPS data, contact lists, type of phone, data from social networks, and

by the MicroCapital Team -

MICROCAPITAL BRIEF: United Bank for Africa (UBA) Rolls Out “Intelligent Personality,” Leo, to Support Online Banking Customers via Facebook Messenger

United Bank for Africa (UBA), which serves 22 countries from its headquarters in Nigeria, recently unveiled Leo, “an artificial intelligence personality meant to address any type of banking concerns” via the Facebook Messenger app from US-based technology firm Facebook. UBA customers that also have a Facebook account may use the “chat banking” service to perform range of actions that includes opening accounts, checking account balances, transferring funds, buying mobile airtime, confirming transactions, applying for loans and freezing

by the MicroCapital Team -

MICROCAPITAL BRIEF: Greenlight Planet Nets Equity, Debt Totaling $60m for Sun King Solar Product Line from Apis, Eight Roads, Bamboo, Deutsche, Global Partnerships, Other Investors

Greenlight Planet, which has offices in Kenya, India and the US, recently raised a total of USD 60 million in equity and debt “to expand its solar-energy product lines, distribution networks, and financing capabilities in Africa and Asia.” Three entities purchased stakes of unspecified sizes in Greenlight, including Apis Growth Fund I, the lead investor in the funding round, which is managed by Nigeria- and UK-based Apis Partners. The other two entities increased existing stakes in Greenlight: Eight Roads Ventures, a private equity firm with offices in seven countries; and Bamboo Capital Partners, an investor seeking “economic, social and environmental

by Aleksandr Marceau -

MICROFINANCE PUBLICATION ROUND-UP: Digital Wallets for Illiterate Customers in India, Agency Banking in Africa, Gender Equality in Financial Services

“Digital Wallet Adoption for the Oral Segment in India: Concept Development for MoWo (Mobile Wallet for Oral);” by Brett Hudson Matthews, Richa Valechha, Vivek Anand, Avantika Kushwaha, Saborni Poddar and Rachit Ohri; published by MicroSave; May 2017; 50 pages, available at:

http://www.microsave.net/files/pdf/DWA_Research_Concept_Development_for_MoWO.pdf

The authors describe a project conducted during 2016 in India on the Mobile Wallet for Oral (MoWo), a mobile-money service designed for the “oral” market segment, which includes 264 million people in the country who have low reading-skill levels. A group of 310 participants from various communities were subjected to “signing, reading and numeracy” tests. Thereafter, 138 people of varying literacy levels participated in focus groups on the user interface of the mobile wallet. Finally, 29 participants performed usability testing.

by Christian Chartier -

MICROCAPITAL BRIEF: SureBüddy, Provider of Free Funeral and Handset Insurance, Expands to Uganda

South African technology firm AxMe International Services recently expanded its SureBüddy insurance application to Uganda, allowing users in that country to view advertisements in return for no-cost insurance for their mobile phone screens.

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 Meredith Steih -

MICROCAPITAL BRIEF: Opportunity International, ReGrow West Africa, Tata Communications Make Commitments at 11th Clinton Global Initiative (CGI) Annual Meeting

At the recent eleventh annual meeting of the Clinton Global Initiative (CGI), an initiative of the US-based Clinton Foundation, 123 new commitments to “alleviate poverty, create a cleaner environment and increase access to health care and education” were announced, including [1]:

by Jared Deveau -

MICROCAPITAL BRIEF: World Economic Forum (WEF) Leaders Aim for Cooperation among Regulators for Financial Inclusion in Africa

During the World Economic Forum (WEF) in South Africa, business and political leaders from multiple African countries including Kenya, Nigeria, and South Africa among others, emphasized the need for collaboration among regulators in order to promote financial inclusion globally.

by Ananya Tiwari -

MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor), The MasterCard Foundation Award $900k to Advans Cote d’Ivoire, MFS Africa, Money Express for Branchless Banking Projects in Benin, Cote d’Ivoire, Senegal

CGAP (Consultative Group to Assist the Poor), a US-based nonprofit that aims to facilitate the expansion of financial access, and The MasterCard Foundation, a Canada-based nonprofit that aims to promote youth learning and financial inclusion in emerging markets, recently awarded a total of USD 900,000 to three projects in countries of the West African Economic and Monetary Union (WAEMU) to expand the availability of banking in the region.

by Ananya Tiwari -

MICROCAPITAL BRIEF: Togo-based EcoBank to Accept MasterCard Debit, Credit, Prepaid Cards via 2,500 ATMs, 10,000 Points of Sale in 28 African Countries

MasterCard, a US-based payment solutions company, recently partnered with EcoBank Transnational Incorporated (EcoBank), a Togo-based bank, to enable Ecobank’s customers to use MasterCard debit, credit and prepaid cards at all of Ecobank’s point-of-sale (PoS) terminals and automated teller machines (ATMs).