by Sally Levy -

MICROCAPITAL STORY: Alitheia Capital, Goodwell Investments and JCS Investments Limited Open West African Microfinance Fund Targeted at $50m

A fund targeted at USD 50 million has been opened by Alitheia Capital, Goodwell Investments and JCS Investments Limited in Lagos, Nigeria.  The fund will invest in and develop microfinance banks and organizations in Nigeria and Ghana. These three investment organizations will pool funds to provide commercial long-term capital which will support the start up and growth of microfinance institutions (MFIs). In addition, support to management teams and access to global microfinance expertise would be provided. The goal of the fund is to increase the outreach of MFIs and provide investors with a market rate of return.

by Jaclyn Berfond -

MICROCAPITAL STORY: European Development Finance Institutions Part 3: The Netherlands Development Finance Company (FMO) Invests Over USD 160 million in Microfinance in Last Two Years

The Netherlands Development Finance Company (FMO), founded by the Dutch government in 1970 to support the private sector in developing countries, invests in microfinance as a way to stimulate sustainable economic growth. Between January 2007 and March 2009, FMO has invested at least USD 160 million in microfinance services around the world.

by Jaclyn Berfond -

MICROCAPITAL STORY: European Development Finance Institutions Part 2: KfW Entwicklungsbank Remains One of the Largest Global Investors in Microfinance

KfW Entwicklungsbank (KfW), a development bank that finances investments on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), has made significant contributions to the microfinance sector in recent years. Between January 2007 and April 2009, KfW has invested at least USD 250 million in microfinance services around the world, with its outstanding commitments to the sector likely making that number even higher.

by Goda Thangada -

MICROCAPITAL STORY: Bhartiya Samruddhi Finance Ltd, a Unit of BASIX Group, Raises USD 9.87m in Capital

A recent press release from Intellectual Capital Advisory Services (Intellecap) reports that Bhartiya Samruddhi Finance Ltd (BSFL), a microfinance institution (MFI) based in Hyderabad, India, has received USD 9.87 million in Series-B funding from several investors including Lok Capital LLC, Aavishkaar Goodwell India Microfinance Development Company and Small Industries Development Bank of India (SIDBI). Intellecap, a finance consultancy firm, was BSFL’s advisor on the deal. BSFL’s old investors, including IFC, Shorecap International Ltd, and ICICI Bank, commenced their exit by making a secondary sale of USD 4 million to the new investors. According to Aavishkaar Goodwell, USD 500 million in private equity over the next five years is necessary to facilitate the growth of MFIs in India. BSFL was set up in 1997 by Bhartiya Samruddhi Investments and Consulting Services (BASICS), the holding company of the BASIX group. BASICS currently owns 49.5 percent of BSFL, with investors holding the remaining amount. According to Mr. Vijay Mahajan, the Chairman and CEO of BSFL, “This is a big milestone for us as investors have reposed faith in the BASIX integrated livelihood promotion model over cookie-cutter micro-credit. We are all set to now address our goal of reaching 10 million poor households by 2014.” Donald Peck, the co-founder of Lok Capital, remarked, “We are delighted to be able to support the further growth of BSFL as it embarks on the next stage of roll-out of its unique agriculture and skills focused business models.”

by Goda Thangada -

WHO’S WHO IN MICROFINANCE: Andhra Pradesh Mahila Abhivruddhi Society (APMAS)

The Andhra Pradesh Mahila Abhivruddhi Society (APMAS) was founded by Mr. CS Reddy (p5) in 2001 to provide technical support and consultancy services to Self-Help Groups (SHGs) in the Indian state of Andhra Pradesh. APMAS uses its connections to large transnational organizations, banks, and government policy makers to link each SHG to a range of resources. By monitoring and molding the operations of SHGs, APMAS attempts to systematize SHGs so that larger organizations can follow professional protocols in working with these small groups.

by Zoran Stanisljevic -

MICROFINANCE EVENT: International Training Program: Business Development Service Providers for Micro Enterprises & Microfinance

International Training Program: Business Development Service Providers for Micro Enterprises & Microfinance, January 4, 2010 – February 12, 2010

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

by Jaclyn Berfond -

MICROFINANCE PAPER WRAP-UP: MIX and Intellecap Present the Asia Microfinance Analysis and Benchmarking Report 2008

Produced by Microfinance Information Exchange, Inc. (MIX) and Intellecap, March 2009, 20 pages, available at: http://www.themix.org/sites/default/files/2008%20Asia%20Microfinance%20Analysis%20and%20Benchmarking%20Report.pdf

The “Asia Microfinance Analysis and Benchmarking Report 2008” analyzes the evolution of the microfinance industry in South Asia and East Asia and the Pacific (EAP), with a focus on outreach and scale, funding sources, and financial performance in fiscal year (FY) 2007.

by Ryan Hogarth -

MICROFINANCE EVENT: The Financial Access Initiative and Africa House host Panel Discussion and Book Launch: “Portfolios of the Poor”, by Daryl Collins, Jonathan Morduch, Stuart Rutherford, and Orlando Ruthven

Panel discussion and book launch of “Portfolios of the Poor: How the World’s Poor Live on $2 a Day” by Daryl Collins, Jonathan Morduch, Stuart Rutherford, and Orlando Ruthven.

May 7, 2009, 6:00pm-8:00pm, New York University Law School, Lipton Hall, 108 West 3rd Street, New York, NY 10012

by Sally Levy -

MICROCAPITAL STORY: ‘Microfinance most Cost-effective, Efficient way of Reducing Poverty’, interview of Sam Daley-Harris, Microcredit Summit Campaign Founder

Sam Daley-Harris, Microcredit Summit Campaign founder is interviewed by the Economic Times of India about how useful microcredit is and his reaction to its criticisms. The full interview can be found here.

by Zoran Stanisljevic -

PAPER WRAP-UP: A Closer Look at Consolidation: The Sonata-Jeevika Acquisition, by Akhand Tiwari and Michael Chasnow

Akhand Tiwari and Michael Chasnow, IFMR Centre for Microfinance’s co-authors, provide an in-depth look at an acquisition in Indian microfinance: Sonata Finance’s purchase of Jeevika Livelihood Support Organization’s microfinance operation in August 2007. The Institute for Financial Management and Research (IFMR) Centre for Microfinance was established in 2005 with the objective to improve the accessibility and quality of financial services for the poor through research, knowledge dissemination and evidence-based policy for MFIs. This paper explores the acquisition and insights it may have for other microfinance practitioners.

by Sally Levy -

MICROCAPITAL STORY: Unitus, Inc. and Yehu Microfinance Trust of Kenya form New Partnership

Unitus, Inc., an international non-profit organization, and Yehu Microfinance Trust of Kenya announced that they have formed a new partnership. Yehu currently serves people in rural coastal Kenya and Unitus already works with two other MFIs in East Africa.

by Laura Anderson -

MICROCAPITAL STORY: Unitus, in Partnership with Financial Sector Deepening (FSDK), Opens Africa Microfinance Growth Centre, a Leadership Development Program for Early-Stage Microfinance Institutions in East Africa

Unitus, an international non-profit organization, has opened the Africa Microfinance Growth Center, a non-profit program developed in partnership with Financial Sector Deepening Kenya (FSDK), to help CEOs and senior managers of early-stage microfinance organizations (MFIs) improve strategy, leadership, and execution in order to grow their organizations and expand microfinance services in East Africa.  In addition to assistance from FSDK, financial support is also being provided by Omidyar Network, The Boeing Company, and SV2: Silicon Valley Social Venture Fund.  No information as to the amounts provided by these companies or the overall budget of the Center was available at the time of this release.