by Anthony Busch -

MICROCAPITAL STORY: The United Nations Development Programme (UNDP) in Angola Allocates $32m for Economic Growth Programs Which will Include Microfinance Activities and Economic Training for the Youth to be Implemented in Partnership with Banco Nacional de Angola, Chevron Corporation, and Development Workshop Angola

MacauHub, a free news service based in Macau, China, reported on February 25th that the United Nations Development Programme (UNDP) in Angola, a part of the United Nations’ (UN) global development network, has allocated USD 32 million for “programs aimed at the social and economic growth of Angola.” In particular, a two-year old poverty reduction program will benefit, which “aims to provide youngsters working in the informal market with training on the economy, making it possible for them to access credit to create their own business.” The program, for which no official name is given in the article, is in partnership with Banco Nacional de Angola (the Central Bank of Angola), the energy giant Chevron Corporation, and Development Workshop Angola (DW Angola), a non-profit organization working in Angola since 1981.

by Anthony Busch -

WHO’S WHO IN MICROFINANCE: The Foundation for International Community Assistance (FINCA)

Founded by microfinance pioneer Dr. John Hatch in 1985, The Foundation for International Community Assistance (FINCA) has been active in the global microfinance industry since its first microcredit program in El Salvador for low-income women in 1986. Operating in 21 countries with 2006 total assets of USD 252 million and a stated commitment to serving the poorest of the poor, FINCA relies on its grounding in Hatch’s Village Banking methodology, which dictates that local customers are the most knowledgeable regarding the management of their own assets. The model calls for cooperatives of 30 to 60 people to form around their mutual interest in pooling funds for inter-member loans and other financial services. Cooperatives gain access to additional capital by borrowing from financial institutions as a group, and then on-lending the funds to individuals, collateral-free.

by Anthony Busch -

PAPER WRAP-UP: Capital Markets: A Long-Term Solution to Financial Freedom, Gil Crawford and Lauren Clark

Co-authored by Gil Crawford, CEO of MicroVest, a Washington, DC-based private microfinance investment firm, and Lauren Clark, the Communications Manager for MicroVest, released July 2007 as Volume 10-Number 1 of Microenterprise Development Review, a publication of the Inter-American Development Bank (IDB), 11 pages, available at http://www.microvestfund.com/docs/microenter_dev_%207-16-07.pdf

by Melissa Duscha -

MICROCAPITAL STORY: A Brief Survey on the Impact of Microfinance on Women Part 3 of a 3-Part Series: Focusing on Women Clients for Financial Sustainability

The United Nations Capital Development Fund (UNCDF) reports that women’s access to microfinance improves overall economic activity in poorer regions, causing economic growth, since women make up 70 percent of the 1.3 billion people living below the poverty line. Access to savings and credit are believed to increase investment and productivity, access to markets and overall income.

by Mary Fu -

MICROCAPITAL STORY: Iraqi Microfinance Institution (MFI) Al-Takadum Opens Second Office in Fallujah

In August 2007, MicroCapital reported on the launching of Al-Takadum, an Iraqi microfinance institution (MFI) in Al Qaim, Al Anbar province. IZDIHAR recently announced in a press release that Al-Takadum opened a second office in Fallujah with seven employees, and as of November 2007, has disbursed fourteen loans totaling USD 32,200.

by Sophie Kim -

MICROCAPITAL STORY: Khushhali Bank (KB) of Pakistan to Receive Human Resource Training Support from ShoreBank International (SBI) Under Widening Harmonized Access to Microfinance (WHAM) Program

Khushhali Bank (KB), a Pakistani microfinance institution, signed a contract to receive consulting, training and technology support of ShoreBank International, Limited (SBI), the international consulting arm of ShoreBank Corporation. The SBI will develop and deliver to KB a customized training on staff management and financial analysis & management, under the Widening Harmonized Access to Microfinance (WHAM). WHAM, a program implemented by SBI, is sponsored by the United States Agency for International Development (USAID) as a part of USD 1.5 billion, 5-year-long USAID aid to Pakistan.

by Amy Rennison -

MICROCAPITAL STORY: The Gates Foundation Makes USD 34 Million Grant to the International Labour Organization to Set Up Microinsurance Initiative

The Bill and Melinda Gates Foundation has given USD 34 million to the International Labour Organization (ILO), the specialized United Nations (UN) agency that deals with labour issues, to establish a microinsurance support initiative. Known as the ‘Microinsurance Innovation Facility’, it will be a one-off, five year project that provides grants and technical assistance to organizations working in microinsurance in developing countries.

by Elizabeth Nelson -

MICROCAPITAL STORY: Study Reveals Microfinance Investment Support Facility for Afghanistan (MISFA) Has Created 659,000 Jobs Since Inception

The Microfinance Investment Support Facility for Afghanistan (MISFA) has released a Baseline/Impact Study which it commissioned in order to 1) establish a baseline database of clients, 2) measure the impact of the microfinance program in Afghanistan since its inception and 3) set up a few key socio-economic indicators that microfinance institutions (MFIs) could monitor to track the well-being of their clients. Following its initial release in September, the survey was presented to key stakeholders, including the Afghan Government, the World Bank, MISFA management and key donors and MFI partners.

by Mary Fu -

MICROCAPITAL STORY: New Microfinance Institution in Iraq Kicks Off Lending with Thirteen Loans

A new microfinance institution in Salah ad Din, Iraq, established with the support of the IZDIHAR project funded by the United States Agency for International Development (USAID), kicked off its lending activities with thirteen loans totaling to USD 35,600.

by Mary Fu -

MICROCAPITAL STORY: Credit Unions in Ecuador Launch First International Shared Branching Network, Expand Global Microfinance Industry

World Council of Credit Unions (WOCCU), supported by CO-OP Shared Branching’s technology and partners from Colorado and Ecuador, successfully launched the first international shared branching network in Quito, Ecuador. The new network, called COONECTA, connects credit union members via direct transaction capabilities in the United States and Ecuador, providing the more than 2 million Ecuadorians living and working in the United States with affordable access to their credit union accounts back home, as well as offering U.S. visitors to Ecuador the same convenience.

by Elizabeth Nelson -

MICROCAPITAL STORY: European Bank for Reconstruction and Development (EBRD) Provides $2m Guarantee to Kyrgyz Microfinance Institution Bai Tushum

The European Bank for Reconstruction and Development (EBRD) is providing Bai Tushum Financial Foundation (BTFF), a leading microfinance institution (MFI) in the Kyrgyz Republic, with a USD 2 million guarantee for local currency loans from local banks. Bai Tushum will use the finances to on-lend to local micro and small enterprises.

by Steven Craig -

WHO’S WHO IN MICROFINANCE: MicroCredit Enterprises

MicroCredit Enterprises is a non-profit organization based in Sacramento, California, that leverages private capital to promote micro-enterprises throughout the developing world by issuing loans and guarantees to creditworthy microfinance institutions (MFIs). Founded in 2005, MicroCredit Enterprises’ loan portfolio includes 17 MFIs in 12 countries, impacting 235,000 poor people. The balance of total loans issued is USD 9.3 million and MicroCredit Enterprises’ current loan default rate is 0.00%. The organization has a low operating expense, with approximately 3% of its loan portfolio or USD 300,000 allocated to budgeted expenditures. The low operating expense is possible since MicroCredit Enterprises’ senior management team, with the exception of the Senior Vice President for Portfolio Management, serve the organization on a pro bono basis.

by the MicroCapital Team -

MICROCAPITAL STORY: Swiss ResponsAbility Microfinanz-Fonds Begins Microfinance Investing and Loans USD 500,000 and USD 344,456 Respectively to PRESTANIC in Latin America and Al Karama in Middle East

This story comes courtesy of the latest issue of the Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse. The responsAbility Microfinanz-Fonds, a microfinance investment vehicle launched this month, has begun its investment business with two loans of USD 500,000 and USD 344,456 to microfinance institutions (MFIs) PRESTANIC and the Association Al Karama de Micro Credit (Al Karama), respectively. Microfinanz-Fonds is managed by responsAbility Social Investment Services Ltd., a Swiss investment firm founded in 2003 specializing in social investment in the developing world. Now the third microfinance investment fund managed by responsAbility, Microfinanz-Fonds has a loan investment portfolio of USD 27.0 million. The fund’s portfolio is financed by its shareholders, Bank im Bistum Essen, a German cooperative financial institution, and Stadtsparkasse Düsseldorf, a German bank.

by the MicroCapital Team -

MICROCAPITAL STORY: European Fund for Southeast Europe (EFSE) Provides USD 4.7 Million Loan to FINCA Kosovo

Here is another story coming courtesy of the Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse. In a series of three installments, the European Fund for Southeast Europe (EFSE), an investment fund focusing on economic development, has loaned USD 4.7 million to FINCA Kosovo, a microfinance program of the Foundation for International Community Assistance (FINCA), a US-based humanitarian organization. The three parts of the entire loan investment include USD 2.7 million for the FINCA Kosovo’s micro loans to micro and small entrepreneurs (MSEs), USD 1.3 million for the program’s housing microfinance, and USD 671,265 for the program’s rural microfinance.