Search Results for: Ghana

Microvest, a global microfinance intermediary, and the Calvert Foundation, a community investment firm, have announced their USD 1.5 million investment into Sinapi Aba Trust (SAT), a non-profit microfinance institution (MFI), headquartered in Kumasi, Ghana.
Continue reading “MICROCAPITAL STORY: The Calvert Foundation, in Partnership with Microvest, Announce their USD 1.5 million Loan to Ghana Based Microfinance Institution Sinapi Aba Trust”

Boafo Microfinance Services Ltd, a newly established microfinance institution (MFI), recently disbursed its first microcredit loans in Accra, Ghana. The organisation is the product of a joint venture between CHF International, a US based non-profit humanitarian and development organisation founded in 1952, and HFC Bank, a commercial bank and the largest mortgage provider in Ghana which also has experience of providing microfinance loans.

Continue reading “CHF International and Ghana’s HFC Bank Creation, Boafo Microfinance Services Ltd, Begins Microcredit Loans”

Another story coming to us courtesy of the CGAP-MIX Capital Markets Update newsletter, Hivos-Triodos Fund loans USD 650,300 to Sinapi Aba Savings and Loans Ltd, based in Ghana. Sinapi established in 2004 to provide financial services in the form of loans and deposits to micro and small entrepreneurs in order to help increase their income. According to the MIX Market, as of December 31^st 2005, Sinapi had a gross loan portfolio of USD 4,766,482 total assets of 8,211,045, a return on assets of -0.45% and a debt to equity ratio of 160.69%.
Continue reading “Hivos-Triodos loans 650,300 to Sinapi Aba a Ghanaian Microfinance Institution”

The Bill and Melinda Gates foundation is granting USD $9 Million and lending USD $20 Million to the African division of ProCredit, a subsidiary of the German organization ProCredit Holdings. The funding is earmarked for operations in Angola, Democratic Republic of Congo (DRC), Ghana, Mozambique, Sierra Leone and a country yet to be named.

This transaction sets precedent in three ways. First, the grant is of unprecedented magnitude, both for ProCredit and for the Foundation’s involvement with microfinance. Second, the Foundation to date has not engaged significant transactions directly with microfinance banks, but has worked with (non-profit) intermediaries. Third, the subordinated loan is Gates’ first significant “program related investment” (PRI) in microfinance. A PRI is different from a grant because it seeks a return on capital, although that return is usually concessionary.

The terms of the agreement stipulate that the grant be spent exclusively to increase the number of clients banking at the ProCredit institutions in Africa and will be drawn down over five years. Furthermore, no dividend will be paid from any African institutions for the duration of the contract (i.e. five years). All profits will be reinvested for the period.

The subordinated loan from Gates will be used to grow ProCredit’s loan portfolio, whereas the grant will support ProCredit’s training academy located in Ghana for the professional development of its employees in the region.

Continue reading “The Gates Foundation Accelerates by Lending and Giving $29 Million to ProCredit Microfinance Banks in Angola, Democratic Republic of Congo (DRC), Ghana, Mozambique, and Sierra Leone”

2,000 new micro-credit borrowers in Ghana now have access to funds thanks to the lending of an additional 3.8 Billion Cedis, or about USD $431,000, by Atwima-Mponua Rural Bank at Nyinahin. A recent Ghana News Agency (GNA) release indicates that the Rural Bank is focusing on group loans, but also states that the head of the microfinance department, Dominic Baah Ayim, is concentrating on encouraging perpetually good individual savings habits. Mr. Baah Ayim asserts that an important component of successful micro-lending in Ghana is teaching people to avoid the “temptation of flamboyant lifestyles whenever their businesses begin to grow.”
Continue reading “Atwima-Mponua Rural Bank Loans USD 431,000 to 2,000 New Microcredit Borrowers in Ghana “

Yet another institution is planning to bring microfinancing options to the historically under-financed region of Ghana. Adehyeman Savings and Loans, a relatively new company with just one year of operations under its belt, disbursed 8.5 Billion Ghanian Cedis, or USD $956,000 in 2006 to 500 individuals, 20 small enterprises, and 80 self-help groups. No other financial information for Adehyeman was available. They do not report to The MIX Market, the microfinance information clearinghouse.

Continue reading “Adhyeman Savings and Loan Company Pledges to Focus Its Energy on Microfinance in Ghana”

The Ghanaian government launched a microcredit fund thanks to a loan arrangement with the International Monetary Fund (IMF). In May 2003, the IMF made available $273 million in 0.5% interest development loans to Ghana. From this, $50 million was drawn to finance the microcredit fund. The Accra Mail, Ghana’s capital city newspaper, mentions the Women’s Development Fund as one of the many organizations that will benefit from the new fund.

Continue reading “Ghana Creates $50 Million Microcredit Fund With IMF Loans”

Africap recently sold its stake in First Allied Savings and Loans (FASL) of Ghana to a strategic investor. The sale resulted in a 25% Internal Rate of Return on the original investment of $550,000 made in April 2004 for a 33% stake in FASL.
Continue reading “A Successful Exit for Microfinance Investment: AfriCap Sells Stake in First Allied Savings and Loan of Ghana”

Headquartered in London, Barclays Bank is a financial services group engaged in banking, investment banking and investment management with a very large international presence in Europe, the USA, Africa and Asia. Barclays is one of the largest financial services companies in the world with over 25 million clients and reported ‘05 pre-tax profits of å£5,280m.

In December of 2005, Barclays entered the microfinance sector via a pilot program in the west African country of Ghana. This initiative combines modern financial services with Susu collection, a form of ancient African banking in which collectors personally gather income from their clients and return it at the end of each month åö minus a fee (p.56). This collection method ensures greater security for the money than the clients could other wise guarantee themselves. The Susu also lend small amounts of money and make monthly payments on behalf of their clients. The Barclays microfinance initiative has three parts:

– A specialized bank account for Susu collectors, including the provision of capital for on-lending to their clients;
– Training programs for Susu collectors; and
– Financial literacy and education programs for Susu clients
Continue reading “London-Based Barclays Bank Expands Reach into Microfinance Investing Through Partnership in Ghana”