by Lori Curtis -

MICROCAPITAL STORY: Ghana’s HFC Bank, Boafo Microfinance and SSNIT Collaborate to Expand Microfinance Services in Ghana

An agreement was signed between the Social Security and National Insurance Trust (SSNIT) Informal Sector Fund, HFC Bank Ghana Limited, and Boafo Microfinance Services Limited to encourage the administration of credit to informal sector entrepreneurs who are contributors of SSNIT. Each of the collaborators will play an active role in the agreement, the purpose of which is to strengthen the economic security of people in the informal sectors, through the growth of businesses and occupational pension funds, in order to assist in the guarantee of economically stable households. The agreement has been conveyed by Director of the SSNIT informal sector fund, Dr. Francis Sapara-Grant, as an indication of “the need to harness the efforts of complementary institutions in the promotion of the welfare of the elderly and the eradication of destitution from the country” and a demonstration “that the business of providing social protection to the Ghanaian worker has assumed a different dimension through this creative and innovative approach”.

by Lori Curtis -

MICROCAPITAL STORY: Indonesia’s MBK Ventura, Egypt’s Al Tadamun, and Grameen Bank’s Nurjahan Begum Recognized at Grameen Foundation 2008 Awards

The achievements of the Grameen Bank‘s Nurjahan Begum, Indonesia’s Mitra Bisnis Keluarga (MBK) Ventura, and Egypt’s Al Tadamun were recognized on November 12, 2008 at the Grameen Foundation’s 2008 Awards in Washington D.C. The awards were held in conjunction with its annual Knowledge Sharing Roundtable discussion, which this year discussed the implications of the global financial crisis on microfinance. Nurjahan Begum received the Susan M. Davis Lifetime Achievement Award for her work in microfinance for over 30 years, including her efforts to organize women in Bangladesh’s poorest villages and leading the fight for the rights of disadvantaged women. MBK Ventura of Indonesia received the Excellence in Microfinance Award for its leadership its efforts to ensure that Indonesia’s poorest citizens receive financial services, and Al Tadamun of Egypt was awarded the Pioneer in Microfinance Award in recognition of its program to provide financial services to Cairo’s poorest women.

by Iyanna Holmes -

MICROCAPITAL STORY: The Development Bank of Namibia (DBN) Launches the Microfinance Support Framework Making $4.1m Available to Credible Microfinance Institutions

The Development Bank of Namibia (DBN) launched the Microfinance Support Framework to serve as a funding mechanism aimed at providing loans to organizations that support development through inexpensive microcredit. DBN was established in 2002 through an Act of Parliament with the goal of improving citizens’ welfare and quality of life through increased economic activity and improved infrastructure.  Through this framework, N$42 million, approximately USD 4.1 million, will be made available to credible microfinancing institutions to extend their products countrywide.  Namibia’s President Hifikepunye Pohamba described the framework as an important initiative that falls directly in line with the DBN Act.  Pohamba encouraged the business community to be more innovative in its approach, cautioning that, “It makes little sense for all of us to be shebeen owners,” referencing the country’s bars or pubs.

by Scott Everett -

MICROCAPITAL STORY: Barack Obama, Roots in Microfinance, Ties to USAID, Ford Foundation, Asian Development Bank, Bank Rakyat, Women’s World Banking and Chicago’s Shorebank

Elayne Clift, an independent journalist, recently wrote a piece in the The New Nation entitled “The Woman Behind Obama,” in which she describes the life of Barack Obama’s mother, Stanley Ann Dunham Soetoro. In the article she highlights some of the work that Mrs. Soetoro did in Indonesia for the Ford Foundation while she was working on her PhD in anthropology. Mrs. Soetoro had a long career of being a researcher and practitioner of microfinance. She was a consultant for the United States Agency for International Development (USAID) on a village credit program, a Ford Foundation program officer in Jakarta specializing in women’s work, a consultant in Pakistan for the Asian Development Bank (ADB), and joined Indonesia’s oldest bank (Bank Rakyat) to work on one of the world’s largest sustainable microfinance programs, creating services like credit and savings for the poor.

by Lori Curtis -

MICROCAPITAL STORY: Kenyan Microfinance Trade Association Puzzled as Only Two MFIs Participate in New “Friendly” Regulation

The Kenyan government passed an Act allowing microfinance institutions (MFIs) to take deposits for the first time, but MFIs have been slow to register under the Act to provide this service, The Daily Nation reported on October 11. The Microfinance Act 2006 became operational on May 2, 2008, yet only two MFIs have since registered under the Act. The Association of Microfinance Institutions of Kenya (AMFI) regards this Act as a platform that will allow MFIs to retain clients instead of acting as a “conveyor belt” for customers on their way to larger commercial banks.

by Jeffrey Erfe -

MICROCAPITAL STORY: The Philippine Government Grants $3.7m to Five Microfinance Institutions: Rural Green Bank of Caraga, Enterprise Bank, People’s Bank of Caraga, Talacogon Agro-Industrial Multi-Purpose Development Cooperative, and Rural Bank of Placer

In August, the Philippine government dispersed PHP 169.7 million (USD 3.7 million) in loans to five microfinance institutions (MFIs) in the Caraga region of Mindanao in accordance with the Rural Micro Enterprise Promotion Program (RuMEPP).  The Small Business Corporation (SBC), a government finance agency, funneled the loan to the Rural Green Bank of Caraga, the Enterprise Bank, the People’s Bank of Caraga, the Talacogon Agro-Industrial Multi-Purpose Development Cooperative (TAMDECO), and the Rural Bank of Placer, which in turn redistributed the funds as loans to thousands of micro-entrepreneurs in Caraga.

by Yrenilsa Lopez -

MICROCAPITAL STORY: State Bank of Pakistan (SBP) Partners with DFID in Diversifying Agrocredit and Extending Access to Microfinance in Rural Regions

Dr Shamshad Akhtar, Governor of the State Bank of Pakistan (SBP) has announced an increase in the credit disbursement target for the country’s agricultural sector to Rs250 billion; up from Rs200 billion in the 2007- 08 year. Pakistan’s agricultural sector has been experiencing a high volume of growth, and as such is seeing an increased demand for credit. This past year banks surpassed the 2007 -08 credit target of Rs200 billion by Rs12 billion. This higher demand for credit is also characterized by an increased diversity in the funds. The non-farm sector of agriculture made up 25 percent of credit disbursements in 2008 and credit to less developed rural provinces has also been growing during the past couple of years.

by Greg Casey -

WHO’S WHO IN MICROFINANCE: SNS Asset Management

SNS Asset Management is a subsidiary of SNS REAAL, the fifth largest financial institution in the Netherlands. The asset management division was founded in 1997 after the merger of SNS bank and De Hollandse Koopmansbank. The firm, which is a participant in the United Nation’s Principles for Responsible Investing initiative (PRI), currently has EUR 19b in assets under management.

by Greg Casey -

MICROCAPITAL STORY: Co-operative Insurance Company of Kenya Introduces Microinsurance Products through International Labor Organization (ILO) Microinsurance Innovation Facility

The Co-operative Insurance Company (CIC) is introducing new microinsurance products in Kenya. The project, which is in conjunction with the International Labor Organizations’s (ILO) Microinsurance Innovation Facility and the Swedish Co-operative Center (SCC), will allow approximately one million low-income Kenyans benefit from “comprehensive family insurance.”

by Ryan Benson -

MICROCAPITAL STORY: Sierra Leone’s Njala University College to Add Microfinance Course to its Offerings

Njala University College in Sierra Leone plans to incorporate a microfinance course into its current course offerings. Jointly developed by Njala University and NaCSA (National Commission for Social Action), the course will form part of the university’s Social Science Curriculum, leading to the award of a Bachelor of Science Degree. Course concepts will be intended for those who wish to become practitioners of microfinance. Subject matter will include principles of finance, lending methodology, and methods of controlling loan delinquency.