by the MicroCapital Team -

MICROCAPITAL BRIEF: 16 Additional Institutions Commit to World Bank’s Goal of Achieving Universal Financial Access by 2020

The US-based multilateral World Bank Group (WBG) recently announced that 16 additional financial institutions have committed to partner to work toward “universal financial access” (UFA) by 2020, bringing the size of the group to 30 organizations. The new partners, which have committed to helping a total of 168 million people open new transaction accounts by 2020, are:

(1) the Aga Khan Agency for Microfinance, which operates in Africa, Asia and the Middle East;
(2) Ant Financial (Ali Baba Group) of China;

by Michelle Dold -

MICROCAPITAL BRIEF: European Investment Bank, World Bank Partner to “Boost MENA,” Supporting First-time Entrepreneurs in the Middle East, North Africa

The European Investment Bank (EIB), the Luxembourg-based long-term lender of the European Union (EU), and the US-based multilateral World Bank Group (WBG) recently announced a joint initiative, Boost MENA, to support “first-time entrepreneurs”, particularly women and young people, in the Middle East and North Africa (MENA).

by Sharanya Madhavan -

MICROCAPITAL BRIEF: Microcred Starts Microfinance Operations in Burkina Faso

The Microcred Group, a for-profit microfinance company operating under the umbrella of French NGO Positive Planet, recently started the operations of its new subsidiary in Ouagadougou. During the first 20 days, customers opened 1,260 accounts, mobilizing CFA 40 million (USD 68,000) in deposits.

by Michelle Dold -

MICROFINANCE EVENT: Global Symposium on Innovative Financial Inclusion, September 21-22, 2016, Kuala Lumpur, Malaysia

Event Name: Global Symposium on Innovative Financial Inclusion: “Harnessing Innovation for Inclusive Finance”

Event Date: September 21 – September 22, 2016

Event Location: Sasana Kijang, Number 2, Jalan Dato’ Onn, 50480, Kuala Lumpur, Malaysia

by Kevin van den Brink -

MICROFINANCE PAPER ROUND-UP: Managing Risks for Smallholders in Africa, Financing Shortfall for Women-owned Enterprises in Indonesia, Perspectives of Banks in Emerging Countries on Financial Inclusion

“Finance for Smallholders: Opportunities for Risk Management by Linking Financial Institutions and Producer Organisations;” by J de la Rive Box et al; published by the Food & Business Knowledge Platform, Agri Pro Focus and the Platform for Inclusive Finance NPM; May 2016;  22 pages; available at: http://www.inclusivefinanceplatform.nl/documents/npm%20summary%20report%20finance%20for%20smallholders.pdf

by Sharanya Madhavan -

MICROCAPITAL BRIEF: India’s Suryoday Microfinance Raises $15m in Equity as Aavishkaar Goodwell Exits

Suryoday Micro Finance Private Limited , a non-banking finance company providing microfinance services in India, recently raised INR 1 billion (USD 15 million) from investors including the Infrastructure Development Finance Company (IDFC) Bank; ASK Pravi; the Housing Development Finance Corporation (HDFC) Standard Life Insurance; Arpwood Investment Advisors; Kiran Vyapar, the investment arm of LN Bangur Group; Polaris Banyan Holding and Dr. Aravind Srinivasan [2].

by Kevin van den Brink -

MICROCAPITAL BRIEF: International Finance Corporation Investing Up To $70m in Debt in India-based Microfinance Institutions Grameen Koota, Janalakshmi Financial Services

The International Finance Corporation, a member of the World Bank Group, recently announced that it will invest up to INR 1.4 billion (USD 20 million) in Grameen Financial Services Private Limited and INR 3.4 billion (USD 50 million) in Janalakshmi Financial Services (JFS), Bangalore-based microfinance institutions (MFIs).

by Imke Herholdt -

MICROCAPITAL BRIEF: The MasterCard Foundation Donates $12m to Microcred to Increase its Client Reach in Ivory Coast, Madagascar, Senegal to 1.2m by 2019

The Microcred Group, a France-based for-profit microfinance company and member of Positive Planet, recently announced it has been funded by The MasterCard Foundation, a Canadian organization founded by the US-based payments firm MasterCard, to launch a financial inclusion programme in Ivory Coast, Madagascar and Senegal.

by Jason Wei -

MICROCAPITAL BRIEF: Bandhan Sells $474m in Microloans to HDFC Bank, IDBI Bank, Yes Bank

Bandhan Bank, an Indian microfinance institution that is organized as a commercial bank, recently sold INR 32 billion (USD 474 million) of “priority sector loans to more experienced private sector rivals to help them meet lending targets.” Indian regulators require banks to invest certain percentages of their holdings in “priority sectors” such as agriculture. Chandra Shekhar, the Managing Director of Bandhan Bank, said that Bandhan Bank had used “inter-bank participation certificates” to sell the loans to India’s HDFC Bank, IDBI Bank and Yes Bank.

by Jason Wei -

MICROCAPITAL BRIEF: Zambia Passes Secured Transactions Law to Boost Lending to SMEs Based on Movable Collateral

With support from the International Finance Corporation (IFC), a member of the US-based World Bank Group, Zambia recently passed the “Personal Property Security Interest Act”, a law that aims to allow small and medium-sized enterprises (SMEs) to use movable collateral such as equipment, machinery and inventory to access loans. Supporters of the law hope it will “generate USD 2 billion in financing to firms and benefit 6,500 SMEs, 1,200 micro enterprises and 1,200 women entrepreneurs” by 2020.

by Kevin van den Brink -

MICROCAPITAL BRIEF: Grameen Foundation, Ideas42 Seek to Influence Mobile Money Behavior in the Philippines

Two US-based nonprofits, the microfinance-oriented Grameen Foundation and the behavioral design firm ideas42 recently launched a partnership to support financial inclusion in the Philippines by implementing a combination of behavioral science principles and digital financial services provided through mobile phones.

by Jason Wei -

MICROCAPITAL BRIEF: FINCA, First Access Partner in Africa on Alternative Credit Scoring, Incorporating Mobile Phone Usage

FINCA Microfinance Holding Company, an arm of US-based nonprofit microfinance network FINCA International, and First Access, a US-based financial technology company, recently partnered to create an alternative credit-scoring system to serve the Democratic Republic of Congo, Kenya, Malawi, Nigeria, Tanzania, Uganda and Zambia. This system aims to “establish credit scores for low-income clients who lack sufficient formal credit history to secure small loans to build businesses or support emerging personal needs.” Specific information on exactly how this system works is unavailable, but First Access typically analyzes demographic, geographic, financial and social aspects of clients’ mobile phone usage to predict credit risk.

by Kevin van den Brink -

MICROCAPITAL BRIEF: World Bank, Rabobank Foundation Seek to Replicate Consolidation of Agricultural Cooperatives in Albania

The World Bank, member of US-based multilateral World Bank Group, and the Rabobank Foundation, the “social fund” of the Dutch bank Rabobank, recently teamed up to consolidate agricultural cooperative financial institutions (CFIs), organizations set up by farmers to gain access to financing.

by Kevin van den Brink -

MICROCAPITAL BRIEF: Indian Microfinance Institution Ujjivan Goes Public, Raising $95m in Association With IPO

Ujjivan Financial Services, an Indian provider of microloans and life insurance, recently conducted its initial public offering (IPO), generating INR 3.6 billion (USD 54 million) from the sale of newly issued shares.

by Kevin van den Brink -

MICROFINANCE PUBLICATION ROUND-UP: Mobile Money in Africa; Doing Business in Kyrgyzstan; Digitalization of Kenya’s Premier Credit

“Mobile Money Momentum in Four African Countries;” published by CGAP (Consultative Group to Assist the Poor); December 2015; 101 pages; available at: http://www.cgap.org/news/new-data-cgap-sets-benchmark-use-mobile-financial-services

by Kevin van den Brink -

MICROCAPITAL BRIEF: Afluenta Raises $8m in Series B Equity Funding from International Finance Corporation, Elevar for Peer-to-Peer Lending in Latin America

Afluenta, an Argentina-based peer-to-peer (P2P) lending platform, recently announced it closed a series B funding round totaling USD 8 million from the International Finance Corporation (IFC), a member of the US-based World Bank Group that aims to increase economic growth in developing countries, and Elevar Equity, a “development-focused” private equity fund based in India.