by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: The Scope For Microinsurance And The Importance Of Best Practices: Observations by ACCION International, Zurich Financial Services And Risk Management Solutions Inc.

A recent report by Mr Matthew Brodsky on the Risk and Insurance portal entitled ‘Microinsurance Has Big Upside’ [1] discusses the vast potential of the microinsurance market. Monica Brand, principal director of the Gateway Microfinance Innovation Fund at Boston-based ACCION International [2], was quoted as stating that microinsurance ‘is taking off in the sense that the commercial insurance is seeing what the commercial banking industry saw … that there’s a huge gap’ in the market.

by Diya Chopra -

MICROCAPITAL.ORG STORY: US Congressional Delegation Visits Opportunity International Microfinance Bank in Kigali, Rwanda to Promote Proposed US Government Funding for Human Capacity Building in Developing Countries

Mr. Gregory W. Meeks, a United States (U.S.) Congressman representing New York State’s Sixth Congressional District in the U.S. House of Representatives recently led a delegation to Kigali, Rwanda. The representatives met to explore the existing microfinance situation in sub-Saharan Africa, and to better understand the needs for expanding micro-banking services in the region.

by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: Social Fund For Development and UNDP Meet To Establish Microfinance Network In Yemen

It was recently reported in the Yemen Observer [1] that a microfinance network or trade association will be established in Yemen with a view to promoting best practices, good governance and accountability in the country’s growing microfinance sector. A meeting was held by the Social Fund for Development (SFD) [2] and the United Nation Development Program (UNDP) [3] to select the board of directors for the network and to deal with preliminary matters. The report in the Yemen Observer stated that the establishment of a microfinance network is ‘an integral part of the national strategy to develop the microfinance industry’ in Yemen and that the network will focus on providing the technical assistance, increasing the abilities of MFI officers as well as setting up and supporting a centre for exchanging information, experiences and techniques within the Yemeni microfinance industry.

by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: The Importance Of Taking Deposits And A Return To Community Based Microfinance? Views From The Gates Foundation, Grameen Bank And Oxfam America In Time Magazine

In an article entitled ‘The Next Step for Microfinance: Taking Deposits’ in a recent issue of Time magazine [1], writer Ms Barbara Kiviat highlights the importance of deposit taking in the field of microfinance or what has been referred to by some development experts as the “forgotten half of rural finance.” Ms Kiviat, a staff writer for Time magazine, reiterates the point that whilst microloans are important, the service that a lot of the poor need ‘more than business loans, is a safe place to save their money’.

by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: Microfinance Organisations In The Kashmir Valley Should Increase Their Focus On The Urban Poor – Observations From Jammu And Kashmir

In a recent report available the Microfinance Focus portal [1] entitled ‘Rising urban poverty in Jammu and Kashmir calls for focus on microfinance’ [2] by the journalist Bilal Hussain [3] in Srinagar, Mr Hussain calls for microfinance participants to increase their focus on the urban poor in the Kashmir Valley. Whilst a good number of MFIs and related organisations focus on alleviating poverty in rural areas of the Kashmir valley, Mr Hussain is of the view that there are significant numbers of urban poor who would benefit greatly from access to microcredit.

by Zoran Stanisljevic -

MEET THE MICROBANKER: Interview with Scott Budde, Managing Director of the Global Social and Community Investment Group (GSCIG) and founder of the Global Microfinance Investment Program (GMIP) at TIAA-CREF

TIAA-CREF is a national financial services organization with more than USD 398 billion in combined assets under management (9/30/08) and a provider of retirement services in the academic, research, medical and cultural fields. In 2006 the company had formed a new Social and Community Investing Department within its Asset Management area. The Global Microfinance Investment Program is part of TIAA-CREF’s Social and Community Investing Department, which develops new socially oriented products, oversees the screening methodology of social screened funds, formulates policies around key social issues and manages community investment programs. Notable accomplishments for the firm have been the creation of a USD 100 million Global Microfinance Investment Program (GMIP) to invest in selected Microfinance Institutions (MFI’s) worldwide. Concurrently, TIAA-CREF also announced GMIP’s first investment – a USD 43 million private equity stake in ProCredit Holding AG, a microfinance company.

Scott Budde, Managing Director of the Global Social and Community Investment Group (GSCIG), and founder of the Global Microfinance Investment Program (GMIP) at TIAA-CREF

by Chinq Yee Chong -

MICROCAPITAL STORY: Fund-raising Continues In India – Kerala’s ESAF Microfinance And Investments Raises $2.5 Million Through Sale Of Minority Stake To Opportunity International Australia’s Subsidiary, Dia Vikas Capital

It was recently reported by Ruchika Sharma in VC Circle, a specialist South Asian journal on venture capital, that a South India based MFI, ESAF Microfinance and Investments (EMFIL) has raised Rupees 12 crore (approximately USD 2.5 million). According to the MIX Market portal, a database which provides financial and other information on MFIs across the globe, EMFIL was established in 1992 and is a regulated non-bank financial institution which is modeled along the lines of Grameen Bank. It is stated in EMFIL’s profile on the MIX Market that the MFI’s total assets as at 31 March 2008 is USD 21, 838,532 and it has active 145,712 borrowers. EMFIL’s total equity is reported to be USD 1,169,903 and it has a profit margin of 3.03%. Its return on assets is said to be 0.71 percent and return on equity is 16.74 percent. The services offered by EMFIL include microcredit, microinsurance, funds transfers and micro-energy loans. Kerala-based EMFIL raised the amount by selling 20 percent of its stake to Dia Vikas Capital Private Limited, a 100% subsidiary of Opportunity International Australia. No further information about the transaction is currently available in the public domain.

by Sally Levy -

MICROFINANCE PAPER WRAP-UP: Are Deposits a Stable Source of Funding for Microfinance Institutions? By Julia Abakaeva and Jasmina Glisovic-Mezieres

Written by Julia Abakaeva and Jasmina Glisovic-Mezieres, published June 2009 by the Consultative Group to Assist the Poor (CGAP), 4 pages, available at: http://www.cgap.org/gm/document-1.9.34820/CGAPBrief_Deposits.pdf

by Chinq Yee Chong -

MICROCAPITAL STORY: Microfinance Investors Back The Leapfrog Financial Inclusion Fund To Raise USD 44 Million For Microinsurance

The LeapFrog Financial Inclusion Fund recently announced that it has raised USD 44 million. This was reported on several news portals including Bloomberg, the Corporate Social Responsibility Newswire, the Press Portal website and CNBC. The fund has been billed as the world’s first investment fund that is focused on microinsurance. The fund aims to invest in or partner with businesses that offer insurance products and financial services to low-income communities throughout Africa and Asia, including India, Pakistan, South Africa and Uganda.

by Chinq Yee Chong -

MICROCAPITAL STORY: Islamic Microfinance – What Next? Nigeria Promotes “Non-Interest” Banking

In a recent speech before the senate, Lamido Sanusi who is the governor of the Nigerian Central Bank (CBN) governor, emphasized that it is important to ensure that banks do not claim to offer Islamic banking products when they are in fact running a conventional banking business.

by Zoran Stanisljevic -

MICROCAPITAL STORY: Tori Hogan’s Ninth Episode (Entitled “Micro-lending”) of the Ten-Part Film Series “Beyond Good Intentions” Takes a Critical Look at the Realities of Micro-Lending by Questioning the Impact of the Kiva Model

Director Tori Hogan’s Ninth Episode (entitled “Micro-lending”) of a ten-part film series “Beyond Good Intentions” takes a critical look at the realities of micro-lending by questioning the impact of one of the world’s respected and favorite microfinance organization: Kiva.org (Kiva).  Ms. Hogan openly debates that while she has total respect and admiration for the numerous successful work performed by the Kiva organization and the team, her experiences and research in the microfinance field, specifically in both Cambodia and Mozambique, left much to be desired.  Outside of the interviews and assessments, Ms. Hogan does not reference the vast amount of material currently available to the public that is critical of microfinance.

by Uyen Tran -

MICROCAPITAL STORY: Agile Financial Technologies (Agile FT) of the United Arab Emirates Signs Deal with Theme Technologies (Theme) of India to Acquire Theme’s Micro-Finance, Micro-Credit and Credit Management Products

Agile Financial Technologies (Agile FT), a software technology provider, will acquire information technology company Theme Technologies’ (Theme) micro-finance, micro-credit, and credit management products. Agile FT will rebrand and launch the products as Agilis Universal Microfinance (Agilis UMF). The agreement is an earn-out mechanism over three years where part of the purchase price is contingent upon the future performance of Theme.

by Jaclyn Berfond -

MICROCAPITAL STORY: PlaNet Finance to Expand Microinsurance Program Across Middle East and North Africa

PlaNet Finance Group plans to expand its microinsurance schemes throughout the Middle East and North Africa (MENA), following the implementation of a microinsurance program in Egypt with First Microfinance Foundation (FMF) and global insurance company Allianz.

by Laura Anderson -

MICROCAPITAL STORY: PT Danamon Optimistic About Microfinance Growth in Second Quarter 2009

PT Bank Danamon, the fifth largest bank in Indonesia by assets, expects loan growth may exceed 10 percent in the second quarter after key economic indicators painted a better-than-expected picture for 2009.  According to Danamon President Director Sebastian Paredes, the bank originally expected growth to be lower than 10 percent in 2009 and the first half of the year to be very difficult.  “We now feel the second half will be better because interest rates will continue to decrease. First-quarter gross domestic product was also not as low as we expected and our microfinance growth was better than predicted.”  Paredes added that beyond 2010 the bank believed loan growth would be as fast it was in the past five years and that loan growth would likely center around microfinance, consumer lending, and small- and medium-sized enterprises