by Makai McClintock -

MICROFINANCE EVENT: African Microfinance Week (Semaine Africaine de la Microfinance), June 29 – July 3, 2015, Dakar, Senegal, With On-site Reporting by MicroCapital

Event Name: African Microfinance Week (Semaine Africaine de la Microfinance) 2015

Event Dates: June 29 – July 3, 2015

Location: King Fahd Palace Conference Center, Dakar, Senegal

Event Summary: The second annual African Microfinance Week will center around “accelerating innovative rural finance in Africa,” providing practitioners with a venue for exchanging ideas and reflecting on the trajectory of the industry. The event is designed to improve “the synergies” between the Benin-based African Microfinance Network (AFMIN), an association of 21 national microfinance networks; the African Microfinance Transparency Forum (AMT), a South Africa-based group that aims to strengthen the performance of African microfinance institutions (MFIs); the African Rural & Agricultural Credit Association (AFRACA), a Kenya-based group of 105 central banks, retail financial service providers and microfinance networks; and the Microfinance African Institutions Network (MAIN), a Cote d’Ivoire-based NGO with 71 members. The program is sponsored by the governments of Senegal and the Grand Duchy of Luxembourg with support from the US-based Citi Foundation; the Luxembourg-based European Investment Bank; the United Nations Capital Development Fund; and Microfact, a nonprofit, web-based platform that provides toolkits for building the capacity of MFIs. The week will include plenary sessions, trainings, an investors’ fair and the general assemblies of AFMIN and MAIN. The primary languages of the event will be French and English. MicroCapital will provide sponsored, onsite coverage of selected sessions.

by Makai McClintock -

SPECIAL REPORT: Save the Date: African Microfinance Week (Semaine Africaine de la Microfinance), June 29 – July 3, 2015, Dakar, Senegal

Event Name: African Microfinance Week (Semaine Africaine de la Microfinance) 2015

Event Dates: June 29 – July 3, 2015

Location: King Fahd Palace Conference Center, Dakar, Senegal

Event Summary: The second annual African Microfinance Week will center around “accelerating innovative rural finance in Africa,” providing practitioners with a venue for exchanging ideas and reflecting on the trajectory of the industry. The event is designed to improve “the synergies” between the Benin-based African Microfinance Network (AFMIN), an association of 21 national microfinance networks; the African Microfinance Transparency Forum (AMT), a group that aims to strengthen the performance of African microfinance institutions (MFIs); the African Rural & Agricultural Credit Association (AFRACA), a Kenya-based group of 105 central banks, retail financial service providers and microfinance networks; and the Microfinance African Institutions Network (MAIN), a Cote d’Ivoire-based NGO with 71 members. The program is sponsored by the governments of Senegal and the Grand Duchy of Luxembourg with support from the US-based Citi Foundation; the Luxembourg-based European Investment Bank; the United Nations Capital Development Fund; and Microfact, a nonprofit, web-based platform that provides toolkits for building the capacity of MFIs. The week will include plenary sessions, trainings, an investors’ fair and the general assemblies of AFMIN and MAIN. The primary languages of the event will be French and English.

by the MicroCapital Team -

SPECIAL FEATURE: Striving for Consistency: An Effort to Standardize Impact Assessments in Microinsurance

Risks and unexpected events affect us all. However, for low-income people, the financial impact of an unforeseen shock such as a health crisis, the death of a breadwinner or destroyed crops can be devastating. With minimal resources to draw on, many must rely on informal coping mechanisms, such as selling productive assets, taking children out of school either to work or because fees are no longer affordable, or relying on their support network to finance the shock, which can often cause families to spiral into poverty.

by the MicroCapital Team -

SPECIAL FEATURE: Are Microfinance Institutions and Investors Removed from Business Reality?

This opinion piece was contributed by David MacDougall, a consultant based in the US city of New York.

Microfinance inspires optimism. Investors – especially private equity investors – anticipate handsome returns; aid agencies see strong social impact; and microfinance institution (MFI) managers are certain they can grow themselves out of every tight situation. While microfinance can play an important role in development, most MFIs nevertheless are relatively simple financial institutions that need to be grounded in sound market and business principles rather than pie-in-the-sky expectations. These “Business 101” principles, which may sound like common sense truisms, in my experience, have not trickled down to many MFIs. In over 10 years of examining the viability of MFI business models as an analyst and risk manager, I have seen decision makers fail again and again to do reality checks. What’s still urgently needed is sound market analysis and professional risk management.

by Aliz Crowley -

MICROCAPITAL BRIEF: Green for Growth Fund, Southeast Europe (GGF) Loans $2m to ACBA Leasing of Armenia to Boost Energy Efficiency for SMEs, Large Companies

The Green for Growth Fund, Southeast Europe (GGF), a Germany-based fund that invests in energy efficiency (EE) and renewable energy sources, recently disbursed a senior loan of USD 2 million to Agricultural Cooperative Bank of Armenia Leasing (ACBA Leasing).

by Makai McClintock -

MICROFINANCE PUBLICATION ROUND-UP: Financial Liberalization and Rural Banking in India, Agricultural Financing and Food Security in Developing Countries, European Small Business Finance Outlook

“Financial Liberalization and Rural Banking in India;” published by the Indian Statistical Institute, Kolkata; 2014; 29 pages; available at http://www.networkideas.org/feathm/dec2004/Conference_Papers/Financial_Liberalisation_Rural_Banking_India_VKR.pdf

This paper examines the effects of the recent trend of financial liberalization in India, including its impact on banking policy and the structure of rural economies in the country.

by David Dillon -

MICROFINANCE EVENT: Triple Bottom Line Investing Presents “TBLI Conference @Booth/Kellogg;” January 23, 2015; Chicago, Illinois

Event Name: TBLI Conference @Booth/Kellogg

Event Date: January 23, 2015

Event Location: Gleacher Center, Chicago, Illinois, USA

Cost: The cost to attend is USD 700, with discounts offered to investors, NGO representatives and students.

Summary of Event: This conference will include panels on green technology, structuring deals, impact measurement and challenges specific to working in emerging markets.

by Ananya Tiwari -

MICROCAPITAL BRIEF: The MasterCard Foundation Commits $25m to Expand UN Capital Development Fund’s Mobile Money for the Poor (MM4P) Program

The MasterCard Foundation, a Canadian nonprofit that aims to promote youth learning and financial inclusion in Africa and other emerging markets, has partnered with the United Nations Capital Development Fund (UNCDF), a UN initiative to increase access to microfinance and other forms of investment capital for small businesses and individuals in developing countries, to expand the UNCDF Mobile Money for the Poor (MM4P) program.

by Ananya Tiwari -

MICROCAPITAL BRIEF: Green for Growth Fund, Southeast Europe (GGF) Lends $5m to Muganbank of Azerbaijan for On-Lending to Micro-, Small and Medium-Sized Enterprises (MSMEs) for Energy Efficiency Projects

The Green for Growth Fund, Southeast Europe (GGF), a Germany-based fund that invests in energy efficiency (EE) and renewable energy sources, recently disbursed a senior loan totaling USD 5 million to Muganbank, a financial institution that offers retail and corporate banking services in Azerbaijan, to on-lend to finance energy-efficient measures to be taken by households and micro-, small and medium-sized enterprises (MSMEs).

by Simon Pfanner -

MICROCAPITAL BRIEF: Technology Recognized as Tool to Improve Property Rights, Payment Platforms, Reduce Transaction Costs at International Monetary Fund (IMF) Seminar: “Future of Finance – Technology and Financial Inclusion”

The International Monetary Fund (IMF), a US-based arm of the United Nations, and the US-based World Bank Group, recently held a seminar on technology and financial inclusion as part of its seminar series entitled “The Future of Finance,” panelists discussed the role of technology as a tool to amend market failures in the provision of financial services for low-income people such as via the documentation of property rights and reductions in transaction costs.

by Simon Pfanner -

MICROFINANCE PAPER WRAP-UP: “The Next Stage of Financial Inclusion;” by Dean Karlan; Published by Stanford Social Innovation Review

“The Next Stage of Financial Inclusion;” by D. Karlan; published by the Stanford Social Innovation Review; fall 2014; 9 pages; available at: http://www.ssireview.org/pdf/Fall_2014_The_Next_Stage_of_Financial_Inclusion_1.pdf

This paper investigates the evolving role of nonprofit organizations in providing microcredit to people with low incomes.

by Simon Pfanner -

MICROCAPITAL BRIEF: Cape Verde Engages ADA in Adjusting Legal Framework to Encourage Microfinance

The island nation of Cape Verde, with the support of Luxembourg-based NGO ADA, which was founded in 1994 as Appui au Développement Autonome, has established a new law enabling a regulatory framework intended to be more conducive to microfinance.

by Aliz Crowley -

MICROFINANCE PAPER WRAP-UP: “Myanmar: Demand, Supply, Policy and Regulation;” by Doubell Chamberlain et al; published by the Centre for Financial Regulation & Inclusion (CENFRI)

“Myanmar: Demand, Supply, Policy and Regulation;” by Doubell Chamberlain, Hennie Bester, Herman Smit, Christiaan Loots, Shirley Mburu, Ahmed Dermish, Lara Gidvani and David Saunders; published as a Making Access Possible (MAP) Study Synthesis Note by the Centre for Financial Regulation & Inclusion (CENFRI); 2014; 41 pages; available at     http://cenfri.org/documents/MAP/2014/MAP%20Myanmar%20Synthesis%20Note.pdf

This document covers an assessment of the retail financial services market in Myanmar as performed by the Making Access Possible (MAP) program, which was developed by the United Nations Capital Development Fund (UNCDF) to support global financial inclusion.

by Aliz Crowley -

MICROCAPITAL BRIEF: Reserve Bank of India (RBI) to Encourage Banks to Deploy Rural Automatic Teller Machines (ATMs), Use Unclaimed Funds for Financial Education

The Reserve Bank of India (RBI), the country’s central banking authority, reportedly has initiated a program under which banks are requested to install an unspecified number of automatic teller machines (ATMs) in rural areas that will dispense bank notes in relatively small denominations.

by Sarah Luo -

MICROCAPITAL BRIEF: Bank of Ghana Demands Photos of Owners of Microfinance Institutions to Deter Theft of Deposits

The Bank of Ghana (BoG), the central bank of the country, reportedly has implemented more stringent regulations for microfinance institutions (MFIs) in an effort to address an increase in failed microbanks and stolen customer deposits, which have been attributed to “bad management practices, increasing non-performing loans, fraudulent activities and expansion without a commensurate increase in capacity.”

by Ben Krupp -

MICROFINANCE PUBLICATION ROUND-UP: Effects of Female Leadership on Microfinance Institutions (MFIs); Impact of Microcredit in Morocco; Social Performance Management Guide

“Female Leadership, Performance, and Governance in Microfinance Institutions;” by Reidar Øystein Strøm, Bert D’Espallier and Roy Mersland; published by Elsevier; 2014; 16 pages; available for purchase at http://www.sciencedirect.com/science/article/pii/S0378426614000284

This report examines the relationship between the performance of microfinance institutions (MFIs) and whether women occupy high management positions, including CEO, chair or director, in those MFIs.

by Aliz Crowley -

MICROCAPITAL BRIEF: World Bank Group (WBG) Loans $12m, Donates $12m to Government of Mozambique for Financial Sector Reform, Including to Boost Financial Inclusion

The World Bank Group (WBG), a US-based multilateral financial institution recently approved a USD 25 million financing package consisting of a loan of USD 12.5 million and a grant of USD 12.5 million to support the “First Programmatic Financial Sector Development Policy Operation (DPO)”[1] of the government of Mozambique.

by Aliz Crowley -

MICROCAPITAL EVENT: Triple Bottom Line Investing Presents “TBLI Conference Nordic 2014,” September 10-11, 2014, Oslo, Norway

Event Name: Triple Bottom Line Investing Conference Nordic 2014

Event Date: September 10 – 11, 2014

Event Location: BI Norwegian Business School, Oslo, Norway