by the MicroCapital Team -

SPECIAL REPORT: How Oikocredit Leveraged SAM (Semaine Africaine de la Microfinance) to Expand Its Risk-management Program

Since Yves Komaclo, Oikocredit2015, Dutch cooperative investor Oikocredit has offered a risk-management program for microfinance institutions (MFIs). Participating institutions have built action plans around efforts such as: (1) increasing their use of data from credit bureaux to reduce over-indebtedness; (2) adjusting loan officers’ workload and training to improve client service; and (3) surveying clients about product terms. When expanding the program to a new country, Oikocredit holds a workshop that is open to the entire sector to engage potential partners. From this pool of workshop attendees, those who demonstrate the greatest motivation and ability to make progress in risk management receive a package of consulting services lasting 18 to 24 months.

The program first was active in Benin, Ghana and Togo. As a result of Oikocredit’s sponsoring an event at the 2015 SAM in Dakar to increase awareness of its risk-management efforts, several institutions from other countries expressed

by Nicholas Galimberti -

MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lends $7.1m to Agency for Finance in Kosovo (AFK); Advans Group to Refinance in DRC, Myanmar

The Grameen Credit Agricole Foundation (GCAF), whose head office is in Luxembourg, recently informed MicroCapital that it is disbursing loans to: (1) Agency for Finance in Kosovo (AFK) in the amount of EUR 1.4 million (USD 1.6 million),

by the MicroCapital Team -

MICROCAPITAL BRIEF: Verdant Raises $7.5m in Debt Financing for Retail Capital for Merchant Cash Advances to South African SMEs

Verdant Capital, a Mauritius-based corporate finance firm operating in Africa, recently raised local currency totaling the equivalent of USD 7.5 million from unspecified international investors for South Africa’s Retail Capital to expand its merchant cash advance business. Retail lends to small and medium-sized enterprises (SMEs), which make repayments on the loans daily, based on

by the MicroCapital Team -

MICROCAPITAL BRIEF: Takura Capital of Zimbabwe Acquires Vegetable Producer Companhia do Vanduzi of Mozambique

Zimbabwean private equity firm Takura Capital recently purchased Mozambican vegetable producer Companhia do Vanduzi for an undisclosed price via a bidding process managed by Verdant Capital, a corporate finance firm based in Mauritius. The seller is

by Ryan Gauthier -

MICROCAPITAL BRIEF: Allianz Invests $97m in Bima, Provider of Microinsurance in Africa, Asia, Latin America; Leapfrog Investments Exits

The German insurance company Allianz, through its digital-investment unit Allianz X, recently invested USD 96.6 million in Bima, a provider of

by the MicroCapital Team -

SPECIAL REPORT: Public Solutions at SAM: Collateral Registries, Business Training, Higher Microinsurance Uptake Can Promote Entrepreneurship in Africa

At SAM Conference 2017, Addis Ababa, Ethiopiathe SAM (Semaine Africaine de la Microfinance) plenary on “Public Solutions to Promote Entrepreneurship in Africa,” Kennedy Komba of the Alliance for Financial Inclusion (AFI) explained that his institution’s SME (Small and Medium-sized Enterprise) Working Group comprises 53 regulatory and policy-making bodies. To facilitate the growth of entrepreneurship, these agencies have created collateral registries, adjusted lender liquidity ratios, updated know-your-customer frameworks and established rules for digital financial services. Trainers in Zambia used a financial education game to reach 5,000 people, of whom 80 percent were able to improve their businesses as a result. In Ghana, the Ministry of Agriculture and the Bank of Ghana collaborated to boost local value chains in an effort to reduce costly

by the MicroCapital Team -

SPECIAL REPORT: At SAM, Calls for Alternatives to Collateral, Acquiring Insurance, Technical Assistance, Cheaper Loans for SMEs

During SAM Conference 2017, Addis Ababa, Ethiopiathe SAM (Semaine Africaine de la Microfinance) conference today, Willie Mzumala of Malawi’s Tapika Food Products described how he has grown his business over 13 years to employ 9 people year-round plus additional seasonal staff. However, he still is offered loans at interest rates as high as 45 percent. In addition to affordable financing, he sees a need for small and medium-sized enterprises (SMEs) to get help with marketing, getting international exposure and standardizing quality.

Richard Muteti of the Kenya National Federation of Jua Kali Associations repeated Mr Mzumala’s call for help with standardization and more affordable financing. Among other barriers to SME success, he cited lack of appropriately

by Aleksandr Marceau -

MICROCAPITAL BRIEF: World Vision, Développement international Desjardins (DiD), Enablis Deploying Skills Training for Employment Program (STEP) in Senegal

Three Canadian NGOs, World Vision Canada, a unit of US-based Christian NGO World Vision; Développement international Desjardins (DID), a provider of access to financial services and financial education; and Enablis Canada, a consultant to small and medium enterprises (SMEs), recently collaborated to launch

by the MicroCapital Team -

MICROCAPITAL BRIEF: ADB Donates $150k to Cantilan Bank of the Philippines to Migrate to Oradian Cloud Banking Software

The Philippine’s Cantilan Bank recently received grant funds of USD 150,000 from the Manila-based Asian Development Bank to migrate its operations to Instafin, a cloud-based software product from Croatia-based Oradian. The migration is expected to help Cantilan carry out its “day-to-day operations more effectively and serve their clients more efficiently.” Cantilan Executive Vice President Tanya Hotchkiss said, “This has given Cantilan more capacity to focus on our core business and financial inclusion

by Ryan Gauthier -

MICROCAPITAL BRIEF: Advans Cote d’Ivoire, Aga Khan’s PAMF-Mali Borrowing $3.8m from Grameen Credit Agricole Microfinance Foundation

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to microfinance institutions and other social businesses, recently informed MicroCapital that it has committed to extending the following local-currency loans in phases over three years: the equivalent of USD 2.9 million to Advans Cote d’Ivoire and the equivalent of USD 890,000 to Premiere Agence de MicroFinance (PAMF) Mali.

by Ryan Gauthier -

MICROCAPITAL BRIEF: FMO Lending $4m to Babban Gona to Provide Business Services on Credit to Farmers in Nigeria

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden, a development bank controlled by the Dutch government, recently offered a loan of USD 4 million to Babban Gona, a Nigerian for-profit company that provides business services to small-scale farmers such as assistance with crop insurance; soil analysis; marketing; distribution; and access to seeds, fertilizer and storage facilities.

by Christian Chartier -

MICROCAPITAL BRIEF: Apply by June 5 for The MasterCard Foundation’s $150k “Clients at the Centre” Prize

The MasterCard Foundation, which is based in Canada, is accepting applications through June 5 for its 2017 “Clients at the Centre” Prize, which includes a cash award of USD 150,000.

by Phoebe Rorke -

MICROCAPITAL BRIEF: MBK Borrowing $15m from FMO to Grow Group Microfinance Loan Portfolio in Indonesia

Mitra Bisnis Keluarga Ventura (MBK), a microfinance institution providing group loans to women in Indonesia, recently borrowed USD 15 million from Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Netherlands-based development finance institution. This is the third loan FMO has provided to MBK

by Phoebe Rorke -

MICROCAPITAL BRIEF: Advans Myanmar Disburses First Group Microfinance Loan from Branch in Amarapura

The Advans Group, which operates a network of 10 microfinance institutions from offices in France and Luxembourg, recently opened the first branch of Advans Myanmar in the city of Amarapura. Advans Myanmar is offering loans of up to MMK 1 million (USD 740) to groups of three to six traders and salaried workers.

by Phoebe Rorke -

MICROCAPITAL BRIEF: Zimbabwe May Require Banks to Accept Moveable Collateral Such as Livestock, Accounts Receivable, Vehicles in Effort to Boost Financial Inclusion

The party of Zimbabwean President Robert Mugabe recently proposed a law that would require lenders to accept “moveable” assets, such as machinery, vehicles, livestock and accounts receivable, as collateral. Finance Minister, Patrick Chinamasa, said the legislation would “promote

by Aliz Crowley -

SPECIAL REPORT: The Mergers & Acquisitions Market in Africa’s Alternative Finance Sector

Headlines in the M&A market in Africa in recent years seem to have been dominated by the to-ing and fro-ing of Anglo-South African giants such as Barclays Africa/ABSA and Old Mutual. However, financial institutions in the middle market perhaps have been more active. The M&A market in the alternative finance sector (non-bank or “specialty” lenders) has seen at least 30 transactions (excluding minority stakes) completed over the last five years, and activity levels have remained robust over the last 18 months notwithstanding the slow-down of the M&A market overall.

The alternative finance sector covers a range of credit institutions that are not part of the traditional banking sector, for example, micro (enterprise) finance, consumer finance, leasing or invoice discounting, vehicle lending, housing finance, student finance, fintech, and specialist banks.