The US International Development Finance Corporation (DFC) and Georgia-based Gazelle Finance recently launched a facility to assist Ukrainian enterprises that have been displaced to Georgia as a result of the war between Russia and Ukraine. In particular, the funding is for technical assistance for small and medium-sized enterprises (SMEs). DFC CEO Scott Nathan noted the intent of the facility to
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MICROCAPITAL BRIEF: Kuunda Raises $2m in Equity to Expand Short-term Financing Model for Mobile Money Agents, Retailers, Consumers into 7 Countries in Africa
Kuunda, a Mauritius-domiciled financial technology (fintech) company, has completed its seed funding round with USD 2.25 million in new investment, led by Accion Venture Lab, a unit of US-based nonprofit Accion. The other investors include FINCA Ventures, Future Africa, Greenhouse Capital, Kepple Africa Ventures, Launch Africa, Magic Fund, Mercy Corps Ventures and Seedstars. The funding is slated to boost Kuunda’s existing operations – which span Tanzania and Pakistan – and allow it to expand into Democratic Republic of Congo, Egypt, Malawi, Mozambique, Nigeria, Uganda and Zambia during the remainder of 2022 and 2023. The firm’s offerings are:
MICROCAPITAL BRIEF: Canada, African Development Bank (AfDB) Announce $78m for Lending to Gender-inclusive, Climate-resilient Agricultural SMEs
Global Affairs Canada, an agency of the Canadian government, recently announced a contribution of CAD 100 million (USD 78 million) to the African Development Bank (AfDB), a multilateral institution that works to alleviate poverty in Africa, to support
MICROCAPITAL BRIEF: Catalyst Fund to Incubate 6 “Inclusive” Fintechs Serving Africa, Latin America
Catalyst Fund, an initiative of the US-based firm BFA (Bankable Frontier Associates) Global, recently announced the tenth cohort of financial technology (fintech) companies that it will support in their efforts to serve more “underserved and climate-vulnerable communities in emerging markets.” Four of the companies are based in
MICROCAPITAL BRIEF: USADF, DFC Launch African Small Business Catalyst to Support SMEs in Sub-Saharan Africa
Two institutions backed by the US government, the US African Development Foundation (USADF) and the US International Development Finance Corporation (DFC), recently announced the launch of African Small Business Catalyst (ASBC), “a business accelerator for early growth-stage small and medium-sized enterprises (SMEs) in sub-Saharan Africa.” Through April 15, 2022, SMEs in Cote d’Ivoire, Nigeria, Senegal and Uganda may apply for loans ranging from USD 100,000 to USD 1 million paired with technical assistance and grants up to USD 100,000. In future years, ASBC expects to expand to serve other countries in Africa. The program’s
MICROCAPITAL BRIEF: Lipa of South Africa Offers Banks Tap-to-pay Service Allowing Informal Merchants to Accept Cashless Payments
Lipa Payments, a financial technology (fintech) firm based in South Africa, is rolling out its flagship digital “tap-to-pay” service, which allows merchants in Africa’s informal sector to accept cashless customer payments using mobile phones, rather than point-of-service terminals. The service, which Lipa is introducing via financial institutions in Nigeria and South Africa, integrates
MICROCAPITAL BRIEF: Satisfied Producer of Palm Oil in DRC Has Been “Brought Back from the Brink,” DFIs Sell Debt Holdings in PHC to Maku; Funding to Improve Community Relationships Will Continue
Four European development finance institutions (DFIs) recently sold their debt holdings in Plantations et Huileries du Congo (PHC), a palm oil business in Democratic Republic of the Congo, to Maku Holdings, an affiliate of Kuramo Capital Management, which has offices in Kenya, Nigeria and the US. The DFIs are
MICROFINANCE PAPER WRAP-UP: “Financial Solutions for Women in Rural and Agricultural Livelihoods: Evidence and Strategy,” Published by CGAP
The authors of this slide deck have outlined a strategy to increase access to labor and market opportunities for women in rural and agricultural livelihoods (WIRAL). Among the constraints addressed are saved labor, wage labor, hired labor, digital markets, traditional markets and cultural norms.
MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lends $700k to LAPO SL for Microlending to Women in Sierra Leone
The Grameen Credit Agricole (GCA) Foundation has announced it lent approximately USD 700,000 to Lift Above Poverty Organization (LAPO) Microfinance Company SL, which is located in Sierra Leone, mainly serving women in rural areas. Its product lineup includes savings accounts as
MICROCAPITAL BRIEF: Fintech TerraMagna Raises $40m in Debt, Equity from Milenio, Shift, SoftBank to Boost Lending Along Agricultural Value Chains in Brazil
TerraMagna, a Brazilian agricultural financial technology (fintech) company, recently raised USD 30 million in debt and USD 10 million in equity funding from Japan’s SoftBank Group, via its SoftBank Latin America Fund, and two Brazilian finance firms, Milenio Capital and Shift Capital. The breakdown of the investments by investor and the sizes of the stakes taken have not been released. In addition to lending to sellers of agricultural inputs and tools,
MICROCAPITAL BRIEF: Medical Credit Fund Raises $37m from the Netherlands’ Government, Philips, European DFIs to Boost Financing for SMEs to Fight Malaria, Boost Maternal Health in Africa
Medical Credit Fund (MCF), one of the four nonprofit members of the Netherlands-based PharmAccess Group, recently raised a mix of equity and debt totaling EUR 32.5 million (USD 36.7 million) to “expand the Fund’s presence and support to healthcare providers in sub-Saharan Africa.” In particular, the new funding is slated for investment in
MICROCAPITAL BRIEF: Tugende Raises $17m in Debt from Symbiotics, Goldfinch, Nordic Microfinance Initiative, Lendahand to Expand Vehicle, Equipment Financing for MSMEs in Kenya, Uganda
Tugende, a financial technology (fintech) firm specializing in vehicle finance in Uganda and Kenya, recently raised USD 17 million in debt funding. The firm plans to use USD 12 million of the fresh cash to support growth in
MICROFINANCE PAPER WRAP-UP: “Impact Evaluation of Credit Guarantee Schemes in Agriculture,” Published by FAO
This paper reviews the impacts of multiple agricultural partial credit guarantee schemes (PCGSs), through which governments agree to absorb a portion of lenders’ losses on particular loans or loan portfolios. Governments often use PCGSs to de-risk financial institutions’ lending to small and medium-sized enterprises (SMEs), especially as a countercyclical tool in times of
MICROCAPITAL BRIEF: L-IFT Adds Features to Finbit Financial Diaries App
The Netherlands-based company Low-income Financial Transformation (L-IFT) recently added several features to its Finbit system for creating financial diaries to track the transactions and various attributes of individuals and small enterprises. Finbit includes both an app for Android phones and a portal for accessing the data collected.
The app can act as a financial diary, tracking every daily expense and instance of incoming funds, including purchases, savings, loan disbursements and loan payments as well as number of hours worked. Its new features are more oriented toward the owners of small businesses, including
MICROCAPITAL BRIEF: Bridge Taxi Finance of South Africa Borrows $20m to Boost Leasing Services
Bridge Taxi Finance, which is based in South Africa, recently borrowed ZAR 300 million (USD 20 million) from a group of unidentified “international impact investors” to expand its leasing of minibus taxis with vehicles that are safer and less polluting. In addition to leasing vehicles, the firm provides
MICROCAPITAL BRIEF: Oikocredit, Opportunity International Commit $100m to Education Finance in Low-income Countries
Opportunity International, a US-based nonprofit providing microfinance and other services in 30 countries, and Oikocredit, a Netherlands-based impact investor, recently announced a three-year partnership valued at USD 100 million. Through increased funding of financial institutions partnered with Opportunity International’s EduFinance program, Opportunity International and Oikocredit aim to
MICROCAPITAL BRIEF: AVPA, Investorflow.org, Forge Partnership to Develop Impact Investments in Africa, Resulting in Expanding Membership Base, Increasing Capital Flow in Africa, and Rising Overall Investor Collaboration
African Venture Philanthropy Alliance (AVPA), a Kenya-based “Pan-African network for social investors,” and Investorflow.org, a US-based platform that helps impact investors find co-investors, recently announced a partnership. Dr Frank Aswani, the CEO of AVPA, stated that the tie-up “will allow AVPA to add another 500-plus
MICROCAPITAL BRIEF: Oikocredit Lends $9m to Sidian Bank for SMEs in Kenya
Oikocredit, a cooperative investor based in the Netherlands, recently lent KES 990 million (USD 8.9 million) to Kenya’s Sidian Bank for on-lending to small and medium-sized enterprises (SMEs). Sidian is a commercial institution with 42 branches offering corporate services,