by Jeffrey Erfe -

PIONEERS IN MICROFINANCE: Six Pioneers in Latin America: Álvaro Dávila of Colombia, Joseph Blatchford of the USA, Theodore C. Ning, Jr. of the USA, Mercedes Canalda de Beras-Goico of the Dominican Republic, Clara Serra de Akerman of Colombia, and José Ignacio Avalos Hernánde of Mexico

Microcapital has identified the following six microfinance “pioneers,” individuals who have made long-standing contributions to the evolution and promotion of microfinance practices and/or technology. While not all of these pioneers hail from Latin America, all have been instrumental to the development of microfinance in that region. These pioneers are: Álvaro Dávila of Colombia, Joseph Blatchford of the USA, Theodore C. Ning, Jr. of the USA, Mercedes Canalda de Beras-Goico of the Dominican Republic, Clara Serra de Akerman of Colombia, and José Ignacio Avalos Hernánde of Mexico. Below are short descriptons of the contributions of each:

by Iyanna Holmes -

MICROFINANCE EVENT: Financial Research Associates Hosts the 3rd Annual Microfinance East

3RD ANNUAL MICROFINANCE EAST: THE INVESTMENT OPPORTUNITY
 
JANUARY 29-30, 2009, THE HARMONIE CLUB, NEW YORK, NY
 
Financial Research Associates (FRA), an organization that provides information and networking opportunities through conferences and seminars, will host the 3rd Annual Microfinance East Conference in January.

by Scott Everett -

MICROCAPITAL STORY: How Will The Center For Financial Inclusion Positively Affect Commercial Microfinance?

ACCION International, a microfinance organization founded in 1961 to address the desperate poverty in Latin America’s cities, has recently launched The Center For Financial Inclusion , a collaborative effort to promote commercial microfinance and simultaneously ensure that the needs of poor clients are being met. A key aspect of the Center is to connect the expertise of the non-profit, private and academic sectors to enhance the quality of microfinance. It is a sign of the times as commercial banks have been increasingly involved in socially responsible investing and the debate about what role for-profit activity should play in the microfinance sector continues to intensify.

by Diana Yang -

MICROFINANCE EVENT: Netherlands Development Finance Company (FMO) to Host Press Briefing “The Future of Development Finance” Seminar

FMO HOSTS “FUTURE OF DEVELOPMENT FINANCE” SEMINAR

OCTOBER 1, 2008, THE HAGUE, THE NETHERLANDS

The Netherlands Development Finance Company (FMO) will host a farewell seminar in honor of departing Chief Executive Officer, Arthur Arnold. The program will explore the future of development finance and how it can strengthen the private sector.

Confirmed speakers include: Bert Koenders (Netherlands Minister for Development Cooperation), María Otero (President & CEO of ACCION International), Mo Ibrahim (Founder of Celtel and the Mo Ibrahim Foundation), and Wang Qi (Managing Partner of The Development Principles Group, Beijing).

For more information on the content of the seminar or speaker, visit the event website: www.fmo.nl/farewell.

by Greg Casey -

MICROCAPITAL STORY: Foromic Conference, hosted by the Inter-American Development Bank, to Focus on Responsible Finance, Response to International Crises, Rural Finance, Housing, Technology, Venture Capital and the Importance of Networks

On October 8-10, the Inter-American Development Bank (IDB) will host the sixth edition of the Forum on Microenterprise (FOROMIC). Aside from a general discussion on microfinance in Latin America and the Caribbean, the conference will focus on responses to international crises, rural finance, housing, technology, venture capital and the importance of networks. To learn more about this event, please read this previous MicroCapital story.

by Jocelyn Cheng -

MICROCAPITAL STORY: Lok Capital and the Dell Foundation Announce Investment in Indian Microfinance Organization Arohan

Lok Capital, a microfinance venture capital fund focused on India, and the Dell Foundation, a charitable organization, have announced an investment in Arohan Financial Services Limited, a for-profit Indian microfinance institution (MFI).  The size of the equity investment was not disclosed. Arohan offers microcredit and credit-linked insurance to urban women in Kolkata, and it plans to use the funds to expand operations to other urban centers in eastern India and to expand its product offering.

by Ryan Benson -

PAPER WRAP-UP: Transitions To Private Capital – Case Studies From The Liability Side Of The Balance Sheet, by Marc de Sousa-Shields & Caroline Esther Averch

Produced for review by the United States Agency for International Development (USAID), released July 2007, written by Marc de Sousa-Shields of Enterprising Solutions and Caroline Esther Averch of Chemonics International, 26 pages, available at: http://www.microfinancegateway.org/content/article/detail/49344

Once it became evident that microfinance could be a financially sustainable enterprise, many microfinance institutions (MFIs) operating as non-governmental organizations (NGOs) sought to change their legal status to a commercial MFI. As private entities, these MFIs would not only be able to turn a profit, they would also gain access to private investors offering the debt-capital necessary to expand operations.

“Transitions To Private Capital” reviews the funding strategies employed by three Latin American MFIs following their establishment as for-profit MFIs. Below is a summary of each case, highlighting the key changes in funding, and an accompanying rationale behind each funding decision.

by Anthony Busch -

MICROCAPITAL STORY: Akiba Commercial Bank of Tanzania to Receive a Total of $5.2m in Capital from Accion Investments in Microfinance, the Hivos-Triodos Fund Foundation, Incofin, Inter-Consult, the Netherlands Development Finance Company, the Parastatal Pension Fund, the Triodos-Doen Foundation, and 70 Private Tanzanian Individuals

Based in Dar Es Salaam, Tanzania, Akiba Commercial Bank (ACB) will receive a total of USD 5.2 million in a capitalization program which includes investments from ACCION Investments in Microfinance (ACCION Investments), the Hivos-Triodos Fund Foundation (HTF), Incofin, Inter-Consult, the Netherlands Development Finance Company (FMO), the Parastatal Pension Fund (PPF), the Triodos-Doen Foundation (TDF), and nearly 70 private Tanzanian individuals. The capitalization effort is coupled with a contract between ACB and ACCION International (ACCION) in which the latter of the two will provide short-term technical assistance and a senior management team.

by Sarah Knapp -

MICROCAPITAL STORY: Toronto’s MasterCard Foundation Grants $604,473 to Six Global Microfinance Training Institutes

Through the equivalent of USD 604,473 in grants, Toronto-based MasterCard Foundation recently initiated the Scholars Program to provide 200 scholarships for microfinance leaders in developing countries. The Foundation aims to increase access to management and professional development courses via six institutes: the Boulder Institute of Microfinance, the Frankfurt School of Finance and Management, the HBS-ACCION Program for Strategic Leadership in Microfinance, the Microfinance Centre, the Microfinance Management Institute and the School of Applied Microfinance. Each organization will receive a grant of the equivalent of USD 100,740.

by Emily Liu -

MICROCAPITAL STORY: Dexia Microcredit Fund of Luxembourg Lends $5.9m to Funds for Local Development Nitlapán (FDL Nitlapán), Mikrofin and Fundación para el Apoyo a la Microempresa (FAMA), Microfinance Institutions in Latin America and Eastern Europe

CGAP (Consultative Group to Assist the Poor) reported in its recent list of transactions that Dexia Microcredit Fund, a Luxembourg investment fund, lent USD 3 million to Fund for Local Development Nitlapán (FDL Nitlapán), USD 1.6 million to Mikrofin and USD 1.3 million to Fundación para el Apoyo a la Microempresa (FAMA), microfinance institutions (MFIs) in Latin America and Eastern Europe.

by Emily Liu -

MICROCAPITAL STORY: Banco Bilbao Vizcaya Argentaria (BBVA) of Spain Lends $300k to Fundación para el Desarrollo de la Microempresa (FUDEMI), $750k to Fundación para el Apoyo a la Microempresa (FAMA) and $541k to CRAC Profinanzas, Latin American Microfinance Institutions

CGAP (Consultative Group to Assist the Poor) reported in its recent list of transactions, that Banco Bilbao Vizcaya Argentaria (BBVA), a Spanish financial institution, lent USD 300,000 to Fundación para el Desarrollo de la Microempresa (FUDEMI), USD 750,000 to Fundación para el Apoyo a la Microempresa (FAMA) and USD 541,440 to  CRAC Profinanzas, all three of which are Latin American microfinance institutions (MFIs).