by Bharathi Ram -

MICROCAPITAL STORY: Blue Financial Services in South Africa to Continue Microfinance Growth in Africa But Lessens Pace

Blue Financial Services, the South Africa based microfinance institution (MFI) will remain focused on expansion in Africa and will begin operations in more African countries this year, according to a press release on AllAfrica.com. In this regard, the release quotes Blue’s CEO Dave van Niekerk as saying that Blue’s plans in Africa come despite a slowdown in the ‘pace of its expansion due to the global financial crisis.’ [1]. Per information currently available, Blue’s immediate plans also include the setting up of a branch in Ghana over the next 2 months [2]. (AllAfrica.com is a news and information portal owned by AllAfrica Global Media, a multi-media content service provider, systems technology developer and distributor of African news and information worldwide.)

by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: South Africa’s Blue Financial Services Obtains USAID $10 Million Loan Portfolio Guarantee And Expands Microfinance Services In Africa

It was recently reported that Blue Financial Services (Blue) [1], an MFI headquartered in South Africa and established in 2001, received a loan portfolio guarantee of up to USD 10 million from USAID [2] for their small business lending operations. The facility will cover 50 percent of any loss experienced by Blue on small, medium and micro enterprise or SMME loans within the USAID-backed loan portfolio. The guarantee is valid for the next 10 years.

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: Client Protection In Microfinance – Observations by ACCION and Prizma Mikro From A Hanson Wade Conference On Microfinance Investments

At a recent conference on ‘Investments In Microfinance’ which was held in London and organized by Hanson Wade, a panel discussion was dedicated to the issue of client protection. The panel was led by Ms. Elisabeth Rhyne, Managing Director at the ACCION Centre for Financial Inclusion and Mr. Kenan Crnkic, General Director of Prizma Mikro, an MFI headquartered in Sarajevo. According to its profile on the MIX Market portal, a database which collects financial and other information about MFIs across the globe, Prizma is a non-bank financial institution and was established in 1997. Its total assets as at 31 December 2008 is USD 52,445,597 and it has a Debt To Equity ratio of 297.89 percent. Its Return On Equity is 8.17 percent and its Return On Assets is 2.28 percent. Prizma has 55,820 active borrowers as at 31 December 2008.

by Chinq Yee Chong -

MICROCAPITAL STORY: The Importance Of Financial And Other Education For Microfinance Clients – Lessons From Freedom From Hunger And TechnoServe

A recent report by Kate Murphy in the New York Times highlighted the importance of financial and business education alongside the provision of microcredit. The report notes that interest in training programmes targeting microfinance clients has grown in recent years. The reason for this appears to stem from results of studies which suggest that start-up micro-businesses are more likely to survive if the owners have basic operational skills. Mr. Bobbi L. Gray of the non-profit international development organisation, Freedom From Hunger, was quoted as saying that loan recipients are more likely to succeed if they receive business education. Freedom From Hunger was established in 1946 and currently provides financial education in developing countries under its Credit With Education programme. 

by Uyen Tran -

MICROCAPITAL STORY: Opportunity International’s MicroEnsure of the United Kingdom to Launch Microinsurance Program for Climate Change and Crop Failure in India

MicroEnsure, an insurance intermediary established in 2005, stated that it plans to launch a microinsurance scheme next year for up to 600,000 farmers in India’s Kolhapur province. MicroEnsure is also a subsidiary of Opportunity International, a global non-profit microfinance network, which was formed in 1974, has assets totaling USD 736 million as of 2007 and lends to over 1 million people globally. The plan will insure farmers against their rice crops failing due to drought or heavy rains. Furthermore, the plan is to help farmers access larger loans to pay for seeds and equipment. According to the World Bank, India’s rural population account for about 72 percent of the India’s 1.1 billion people, and most of the rural poor rely on rain-fed agriculture.

by Chinq Yee Chong -

MICROCAPITAL STORY: The Role Of Rural Microfinance In Improving Food Security – Experiences of the Agricultural Credit Corporation in Jordan

In Omar Omeidat’s report in the Jordan Times on a regional conference in Amman on agricultural banks and rural microfinance, HRH Princess Basma was reported to have highlighted the importance of funding for rural projects, particularly in view of the global economic crisis, which she said has had a negative impact on food security programmes. The Princess indicated that due to local and global economic circumstances and a shortage of water resources, the agricultural sector in Jordan faces several challenges, which have led to a drop in the sector’s contribution to the gross domestic product (GDP) and work force. Jordan’s water crisis was the focus of a recent article on the AlertNet-Reuters network, which disseminates information about humanitarian disasters and emergencies across the globe. The IRIN portal, which provides information on humanitarian affairs under the auspices of the United Nations Office for the Coordination of Humanitarian Affairs, recently reported that whilst the water and related food crisis in Jordan is not yet critical, a range of measures and projects need to be implemented as soon as possible to contain the problem.

by Goda Thangada -

MICROCAPITAL STORY: Kinnevik Invests $10m in Microfinance Equity Fund MicroVest II

Swedish company Investment AB Kinnevik has committed to investing USD 10 million in MicroVest II , an equity fund focusing on microfinance and part of the microfinance investment group MicroVest Capital Funds. Additionally, Kinnevik announced the acquisition of 30 percent of shares worth USD 4 million in an Ukrainian farming company. Henrik Persson, Head of New Investments at Kinnevik, comments, “”Micro financing and farming are focus sectors for new investments in Kinnevik and we are pleased to have identified investments within these growth areas.” In October 2007, MicroCapital reported that Kinnevik invested USD 14 million in the African microfinance institution (MFI) Bayport Financial Services.

by Goda Thangada -

MICROFINANCE EVENT: Achieving Scale and Sustainability in Enterprise Development Initiatives, Multiday Online Conference, June 15-26, 2009

Event Name: Achieving Scale and Sustainability in Enterprise Development Initiatives

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

Summary of Event: This online conference will discuss the sustainability of enterprise development programs around the world. A key component is the review of case studies.

by Jaclyn Berfond -

MICROCAPITAL STORY: Pioneer in Microfinance Investing, Triodos Bank, Wins 2009 Sustainable Banking Award by Financial Times (FT) and International Finance Corporation (IFC); MicroEnsure and Root Capital Also Take Prizes

The Financial Times (FT) and the International Finance Corporation (IFC) announced the winners of the 2009 Sustainable Banking Awards. Triodos Bank of the Netherlands was named Sustainable Bank of the Year. Other microfinance programs were recognized, with MicroEnsure winning the award for Achievement in Basic Needs Financing, and Root Capital taking the Achievement in Banking at the Bottom of the Pyramid award.

by Goda Thangada -

MICROCAPITAL STORY: ACCION International’s CEO Maria Otero To Be United States Under Secretary of Democracy and Global Affairs

The White House has nominated the president and CEO of ACCION International, Ms. Maria Otero, to assume the position of Under Secretary of Democracy and Global Affairs in the US Department of State. Although the Senate Foreign Relations Committee has yet to approve the nomination, Ms. Otero has indicated that she will accept the position should her nomination be successful. Ms. Otero has been profiled in MicroCapital’s Who’s Who in Microfinance series in May 2007. Her position at ACCION International will be filled temporarily by Ms. Catherine Quense, Chief Administrative Officer and Chief Deputy, while a committee searches for Ms. Oteros successor. Ms. Diana Taylor, Vice Chair of the ACCION Board, comments, “Her nomination as Under Secretary comes as no surprise to those of us who know her and her deep commitment to social and economic justice, and we know that she now has an even more effective platform from which to help build better lives for the world’s citizens.” Ms. Otero was born and raised until the age of 12 in La Paz, Bolivia, whereupon she and her family moved to Washington DC. She holds a BA in Literature from the University of Maryland and an MA in International Relations from Johns Hopkins. She has been with ACCION since 1986 and became CEO in 2000. ACCION International is a microfinance organization founded in 1961 and consisting of 27 partner microfinance institutions (MFIs) in 20 countries. The position of Under Secretary of Democracy and Global Affairs was established under Section 161(b) of the Foreign Relations Authorization Act for Fiscal Years 1994 and 1995. In total, there are five Under Secretaries of State in the Department of State, headed by Secretary Hillary Rodham Clinton.

by Sally Levy -

MICROCAPITAL STORY: Alitheia Capital, Goodwell Investments and JCS Investments Limited Open West African Microfinance Fund Targeted at $50m

A fund targeted at USD 50 million has been opened by Alitheia Capital, Goodwell Investments and JCS Investments Limited in Lagos, Nigeria.  The fund will invest in and develop microfinance banks and organizations in Nigeria and Ghana. These three investment organizations will pool funds to provide commercial long-term capital which will support the start up and growth of microfinance institutions (MFIs). In addition, support to management teams and access to global microfinance expertise would be provided. The goal of the fund is to increase the outreach of MFIs and provide investors with a market rate of return.

by Jaclyn Berfond -

MICROCAPITAL STORY: European Development Finance Institutions Part 2: KfW Entwicklungsbank Remains One of the Largest Global Investors in Microfinance

KfW Entwicklungsbank (KfW), a development bank that finances investments on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), has made significant contributions to the microfinance sector in recent years. Between January 2007 and April 2009, KfW has invested at least USD 250 million in microfinance services around the world, with its outstanding commitments to the sector likely making that number even higher.

by Laura Anderson -

MICROFINANCE EVENT: Emerging Microfinance in Anglophone West Africa: May 6, 2009

Emerging Microfinance in Anglophone West Africa: May 6, 2009, Lagos, Nigeria 

See Our Comprehensive Event Calendar Here:

http://microfinanceassociation.ning.com/events 

Cost: N/A 

Summary of Event: Alitheia Capital, DARC, JCS Investments and Goodwell Investments have, with the support of First Bank, performed an in-depth study of the potential of the microfinance market in Anglophone West Africa.  The event will feature a presentation of the study results as well as an introduction to a new microfinance equity fund to be launched this year.  Prominent speakers from the regional and international microfinance community will participate in a panel discussion and answer questions from the floor.

by Zoran Stanisljevic -

MICROCAPITAL STORY: Charlie Rose’s Conversation with Dambisa Moyo, Author of “Dead Aid,” with Discussions on International Aid and the Critical Role that Capital Markets and Microfinance Play for Developing Nations

Dambisa Moyo, author of “Dead Aid,” spoke with Charlie Rose on the “Charlie Rose” show, which aired on Wednesday, March 25, 2009.   In the interview she discusses her book “Dead Aid,” with conversation on international development and the critical role that microfinance can play for developing nations.  Her discussions on postwar international development policy and its effect on her native Africa helps question the current model and effectiveness of government to government aid.