by Stefanie Rubin -

MICROCAPITAL BRIEF: Moroccan Government Supports Microfinance Industry’s Path to Recovery in 2010

According to a paper published by Mr Xavier Reille of CGAP (Consultative Group to Assist the Poor), “Few countries boasted as strong and as vibrant a microfinance sector than Morocco, where microfinance institutions (MFIs) saw the size of their combined loan portfolio multiply 11 times between 2004 and 2007.”

by the MicroCapital Team -

MEET THE BOSS: Isabelle Levard, Deputy CEO of MicroCred, a member of the PlaNet Finance Group

Isabelle Levard is Deputy CEO of MicroCred, a member of the PlaNet Finance Group.

MicroCapital: Please describe MicroCred.

Isabelle Levard: MicroCred is an investment company founded by PlaNet Finance that creates, builds and manages microfinance institutions.

by the MicroCapital Team -

MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Relaunches Website With New Tools, All Content Available in English, Spanish, French, Russian

The US-based, nonprofit Microfinance Information Exchange (MIX) recently re-launched its MIX Market website, with the support of Canada’s MasterCard Foundation. 

by the MicroCapital Team -

MICROCAPITAL BRIEF: Small Industries Development Bank of India (SIDBI) Takes 11% Stake in Microfinance Institution Bandhan for $10.7m

Bandhan Financial Services Private Limited, a Indian microfinance institution reports that it has completed its first major equity raise with a INR 500,000,000 (USD 10.7 million) investment from the government-backed Small Industries Development Bank of India (SIDBI).

by Christopher Maggio -

MICROCAPITAL PAPER WRAP-UP: Scenarios for Branchless Banking in 2020, by Mark Pickens, David Porteous, and Sarah Rotman

Written by Mark Pickens, David Porteous, and Sarah Rotman, published by CGAP (Consultive Group to Assist the Poor) and the United Kingdom’s Department for International Development (DFID) in November 2009, 28 pages, available at: http://www.cgap.org/gm/document-1.9.40599/FN57.pdf

For this paper, CGAP (Consultive Group to Assist the Poor) and the United Kingdom’s Department for International Development (DFID) consulted 200 experts from more than 30 countries to ask “How can government and private sector most affect the uptake and usage of branchless banking among the unserved majority by 2020?” To answer this, the study identifies four important forces that seem poised to effect branchless banking:

by Hio Kyeng Lee -

MICROCAPITAL BRIEF: Traditional Moneylenders Gain as Microfinance Industry Grows in India

Since its founding in the 1990s by non profit organizations, the Indian microfinance industry has nearly doubled in value by delivering USD 2.5 billion in loans through early 2009. In connection to this rapid growth, government reports have shown an increased market share of traditional moneylenders, which include pawn brokers, gold merchants and other private moneylenders.  The traditional Indian moneylending industry charges annual interest rates as high as 120 percent, according to CGAP (Consultative Group to Assist the Poor). A Reserve Bank of India (RBI) survey indicated that in recent years, “traditional moneylenders’ share of total rural Indian household debt grew to 29.6% from 17.5%.”  Some academic researchers believe that moneylenders are keeping afloat many microfinance borrowers by acting as stopgaps so that micofinance borrowers can repay prior microloans. The concern is that these borrowers are just digging themselves deeper into debt. However, Padmaja Reddy, managing director of Spandana Foundation, a microlender in India, states that the boom in traditional moneylending represents an increase in “overall demand for credit” and an indication of the untapped market demand for microfinance.

by Hio Kyeng Lee -

MICROCAPITAL BRIEF: SmartAid for Microfinance Index 2009 Publishes Results

CGAP (Consultative Group to Assist the Poor) has announced its SmartAid for Microfinance Index 2009 results. The SmartAid for Microfinance Index is an index created by CGAP to measure and rate the performance of funders in microfinance. A group of eleven funders, which include development finance institutions and multilateral agencies, participated in the 2009 SmartAid Index and together represent more than fifty percent of all cross-border funding in microfinance. The 2009 SmartAid Index results show that funders scored best on “strategic clarity,” followed by “appropriate instruments” while they scored the lowest in the category of “accountability for results”. Barbara Gahwiler, member of SmartAid team, states, “This means that funding can continue regardless of performance. Without knowing the performance of its microfinance portfolio, an agency cannot manage it effectively, and important lessons from past experience are lost. What’s more, the industry still has a long way to go to develop indicators for tracking the performance of support to the market.”

by the MicroCapital Team -

MICROCAPITAL BRIEF: Australia’s Foundation for Development Cooperation Wants Your Input on Establishing a Global Masters Degree in Microfinance

In response to an internal study showing strong demand for a world-class-quality, research-informed masters degree in microfinance, Australia’s Foundation for Development Cooperation (FDC) is seeking your input on this possibility via an online survey. While acknowledging that there are a few existing masters degrees specialising in microfinance, FDC argues for the expansion of offerings citing the ranking of “weak management quality” in the top five risks for microfinance by the “Microfinance Banana Skins” survey each of the last two years.

by Kenny Kline -

MICROCAPITAL.ORG STORY: The 2009 Social Performance Reporting Awards for Microfinance Are In

To qualify for the award, an MFI must meet certain standards developed by the Social Performance Task Force. The Social Performance Task Force (SPTF) was formed in March 2005 by CGAP, the Argidius Foundation, and the Ford Foundation to define social performance for the microfinance industry and address questions relating to social performance measurement and management. The SPTF consists of over 350 leaders from the microfinance field, including practitioners, donors and investors, national and regional networks, technical assistance providers, rating agencies, academics and researchers.

by Diya Chopra -

MICROCAPITAL.ORG STORY: Indian Microfinance Sector Sees Increase in Private Equity Investments from $61m to $143m

The Financial Express, a web-based Indian financial news source, said that from January to October of 2009, the Indian microfinance sector has seen a significant growth in private equity (PE) investments. In that time period, eleven PE deals worth USD 143 million were carried out, compared to eight deals worth USD 61 million in the previous year. According to the article, the Indian microfinance sector’s compound annual growth rate (CAGR) has reached 105% [1].

by Radhika Chandrasekhar -

MICROFINANCE EVENT: “Payment in Emerging Countries” at CARTES & IDentification 2009, November 17, 2009, Paris, Paris-Nord Villepinte Exhibition centre – France

Event Name: “Payment in Emerging Countries” as part of CARTES & IDentification 2009

Event Location: Paris, Paris-Nord Villepinte Exhibition centre – France

Event Description: Conference

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