MICROCAPITAL STORY: SKS Teams with ICICI Lombard General to Provide Health Insurance for Rural Poor in Indian States of Karnataka, Andhra Pradesh, and Orissa

Following an announcement earlier this month, SKS Microfinance (previously reported (1), (2), (3)), an Indian microlending organization, has worked with ICICI Lombard General, an Indian insurance company, to roll out a health care product for the rural poor in Karnataka, Andhra Pradesh, and Orissa by March 8 of this year. This is a continuation of a pilot program introduced in Karnataka in February 2007. The problem of health insurance, while of growing concern in Western nations, is just another symptom of the severe poverty afflicting millions in developing nations. According to United Nations Development Programme, of the one billion people in India, 950 million — 95 percent — are living without health insurance.

WHO’S WHO IN MICROFINANCE: Dr. Jennifer Riria

In the microfinance industry, Dr. Jennifer Riria is internationally known first, as the chief executive officer (CEO) of Kenya Women Finance Trust (KWFT), the largest microfinance institution (MFI) in Kenya, and second, as a board member of Women’s World Banking, a global microfinance network consisting of over 53 MFIs from 30 countries.

MICROCAPITAL STORY: Equity Bank of Kenya to Expand Microfinance Services to Uganda, Tanzania and Rwanda Backed by Investment from Helios EB

James Mwangi, CEO of Kenya-based Equity Bank, recently announced that the bank will use the proceeds from the sale of 25 percent ownership (valued at KES 11 billion or USD 175.7 million) of the bank to investment group Helios EB to expand its operations to other countries in East Africa. The bank plans to open subsidiaries in Uganda, Tanzania and Rwanda by August 2008. The bank believes this expansion will allow it to compete against the dominant players in the region: multinationals such as Barclays and Standard Chartered, as well as local Kenya Commercial Bank. Mr. Mwangi stated that he is confident that the expansion will allow the bank to double its customer base over the next five years.

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.

MICROCAPITAL STORY: International Fund for Agricultural Development (IFAD) Contributes USD 35 Million to Microfinance Program in Pakistan

The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations, has announced that it will contribute a USD 35 million loan to a new microfinance program worth USD 46 million in Pakistan that aims to expand its microfinance services.

MICROCAPITAL STORY: Jeffrey Sachs Outlines The Gate Lecture, Highlights Microfinance at Dubai International Financial Centre (DIFC)

Jeffrey Sachs, considered one of the most influential economists of his time by Time magazine, gave a speech entitled “The Great Convergence: The Shifting Balance of Power in the 21st Century”, which outlined The Gate Lecture, a presentation that he gave at Dubai International Financial Centre (DIFC).

MICROCAPITAL STORY: Rotary International’s Uniendo America Project Fair as Launch Pad for Central American Microcredit Projects

The 15th annual Uniendo America Project Fair will be held from January 24 through 26 of 2008 in San Jose, Costa Rica. It will feature approximately 300 projects on microcredit, water, and education, among others, organized by Rotary Clubs throughout Central America. The fair is a way for Central American and North American Rotarians to exchange ideas and realize these projects. The chair of this year’s fair is Fabio Carballo, who is also vice-chair of Rotary International’s Microcredit Advisory Committee.

MICROCAPITAL STORY: The IFC Agrees to Lend Sekerbank in Turkey $52m to Expand its Microfinance Activities

The International Finance Corporation (IFC), a member of the World Bank Group, has agreed to provide Sekerbank, one of Turkey’s leading private commercial banks, with a loan worth USD 52 Million (EUR 36 Million) over a seven-year period to help expand its microfinance and small and medium enterprise program. The loan has been designated to help the bank reach more than 10,000 micro and small entrepreneurs through its nationwide network of 230 branches across Anatolia.

MICROCAPITAL STORY: What Are the Total Global Assets in Microfinance? Leading Sources Weigh In: MIX, Microcredit Summit, MicroBanking Bulletin (MBB), ACCIÓN, Microfinance Gateway, BlueOrchard, UNCDF, Unitus, CGAP

Numerous challenges hinder the spread of accurate information on microfinance. Due to the lack of transparency of many microfinance providers, much information is never publicly disclosed. Much of the information that is reported is obsolete and outdated—often two or more years old. As there is limited and inconsistent regulation of microfinance providers, third party confirmation of data is often not required, and providers have little incentive to verify their own figures. Essentially, there is no standardized system to which all microfinance providers report and from which accurate information can be retrieved. Thus, the task of determining a basic statistic—such as the total amount of assets invested in microfinance worldwide—can prove nearly impossible. Calculating this figure requires a worldwide census of microfinance institutions (MFIs), coops, government banks, credit unions, self-help groups, etc. Needless to say, no such census exists.

MICROCAPITAL STORY: A Leading Group of Microfinance Players, including Microrate, Global Partnerships, ACCION International, the Calvert Foundation and Calmeadow, Create The FX Consortium, A Foreign Exchange Risk Mitigation Service

The FX Consortium has been founded by a group of leading players in the US microfinance industry to provide a “Foreign Exchange Risk Mitigation Service”. Its aim is to help microfinance institutions (MFIs) that want to use complex financial processes, such as hedging, to manage their hard currency foreign debt obligations.

MICROCAPITAL STORY: Ugandan Government Initiative to Subsidise Solar Power Equipment by 45% to be Implemented by Rural Microfinance Institutions (MFIs)

The Rural Electrification Agency (REA) of Uganda, a semi-autonomous public-private partnership created by the Ugandan Government, has announced a 45% subsidy, up from the current 14%, on all solar power equipment. The subsidy will be will be promoted through a network of rural microfinance institutions (MFIs), and non-government organisations (NGOs), who will be providing a cash payout to those who install the solar systems, or a loan or a loan-offset.

WHO’S WHO IN MICROFINANCE: Hivos-Triodos Fund Foundation

Founded in 1994, the Hivos-Triodos Fund Foundation, a microfinance investment vehicle, was created out of a joint partnership between Triodos Bank, a private bank of the Netherlands investing in social investment, and the Humanist Institute for Development Cooperation (Hivos), a non-government organization (NGO) also based in the Netherlands. The Hivos-Triodos Fund Foundation is managed externally by Triodos Investment Management, a fund management division with Triodos Bank, and internally by a Supervisory Board that is appointed by Hivos.

WHO’S WHO IN MICROFINANCE: The Netherlands’ Triodos Bank and Triodos Investment Management

In 1971, the Triodos Foundation in the Netherlands began investment operations that would become Triodos Bank. The Dutch bank did not come into official existence until 1980, when Triodos Bank was founded with EUR 540,000 in share capital, USD 735,993 at today’s exchange rate. Since then, the bank has provided private banking services as well as created various investment funds, financing social development worldwide.

MICROFINANCE EVENT: NAMMS and RMC Present Sixth Annual National Conference “Microfinance in Russia: Building an All-Inclusive Financial System”

MICROFINANCE IN RUSSIA: BUILDING AN ALL-INCLUSIVE FINANCIAL SYSTEM

NOVEMBER 15-17, 2007, MOSCOW, RUSSIA

The National Partnership of Microfinance Market Stakeholders (NAMMS), a non-profit partnership of individuals and organizations dedicated to microfinance proliferation, and the Russian Microfinance Center, a non-profit organization that promotes microfinance in Russia, jointly present “Microfinance in Russia: Building an All-Inclusive Financial System” to take place in Moscow, Russia, November 15-17, 2007.