by the MicroCapital Team -

MICROCAPITAL BRIEF: US Agency for International Development’s (USAID’s) Tijara Program Funds Microfinance Institutions in Iraq

Since 2008, the Tijara Provincial Economic Growth Program, funded by the United States Agency for International Development (USAID), has worked to encourage private sector development in Iraq by funding microfinance institutions (MFIs), encouraging the implementation of investment law and working to kelp Iraq join the World Trade Organization.

by Christopher Maggio -

MICROCAPITAL BRIEF: The United States Agency for International Development (USAID) to Provide $300,000 in Loans to Vietnam Under the United States President’s Emergency Plan for AIDS Relief (PEPFAR)

The United States Agency for International Development (USAID), an independent federal government agency that provides economic and humanitarian assistance, will provide USD 300,000 in loans to 750 Vietnamese people who are either living with HIV or are caregivers to “orphans or vulnerable children” [1,2]. The program will operate under the United States President’s Emergency Plan for AIDS Relief (PEPFAR) [1,3]. The loans will be used to either start small businesses or begin other “livelihood activities” [1]. The program focuses on seven provinces in Vietnam: Quang Ninh, Hai Phong, Hanoi, Nghe An, Can Tho, An Giang and Ho Chi Minh City [1]. The average loan size will be USD 450 and the loans will be disbursed over the course of the next 12 months [1]. It is unspecified if the borrowers will pay interest [1]. Potential borrowers must present a “feasible business plan” to project workers including a plan to repay the loan within three years [1].

by Hio Kyeng Lee -

MICROCAPITAL.ORG STORY: How Does USAID Share Its Microfinance Knowledge and Know-How?

United States Agency for International Development (USAID), an independent federal government agency responsible for providing economic and humanitarian assistance, has funded microfinance development projects for over three decades. In fiscal year 2008 alone, USAID reported $259.4 million in funding for microfinance development projects in 69 countries.[1] Given the sheer number and monetary value of microfinance development projects funded by USAID, the documentation generated by these projects is similarly prolific. The question that is the focus of this series of articles on this topic is: how does USAID share its cumulative store of microfinance knowledge and know-how? Simply put, how accessible is the USAID database of microfinance knowledge to microfinance professionals and the industry as a whole?

by Kenny Kline -

MICROCAPITAL.ORG STORY: USAID Launches Partnership With Grameen Foundation With $162.5m Credit Guarantee

The U.S. Agency for International Development (USAID) and Grameen Foundation announced a new private-public partnership to support local currency financing to microfinance institutions (MFIs) throughout the developing world. To launch the partnership, the two parties signed a Memorandum of Understanding to formalize the agreement, and entered into a USD 162.5 million join guarantee agreement aimed to help MFIs gain greater access to financing. The twelve-year program is the largest credit guarantee to date under USAID’s Development Credit Authority, and also marks the first time that a non-governmental organization will serve as the facilitator. Grameen Foundation will manage the credit risk of the pool and vet the microfinance institutions who would like to access the funding, while both organizations will issue joint guarantees together. [1]

by Zoran Stanisljevic -

MICROCAPITAL STORY: USAID Signs a USD 16 Million Dollar Loan Agreement with Ethiopian Awash International Bank and Oromiya Cooperative Bank S.C.

According to AllAfrica, a multi-media content service provider of news in Africa, USAID has recently signed a USD 16 million dollar loan agreement with Ethiopian Awash International Bank and Oromiya Cooperative Bank S.C [1]. The agreement was reached to help strengthen the economic development of Ethiopia by enabling microfinance institutions and savings and credit cooperatives to offer more loans [1]. No additional information is provided as to whether the funds are on-lent to MFIs or which MFIs will receive these funds. According to the AllAfrica story, the loan agreement would reduce collateral requirements to beneficiaries by 50 percent, but it is unclear who the beneficiaries are. There is no additional information regarding the terms and usage of loan, structure of the program or how it would reduce collateral requirements is provided.

by Uyen Tran -

MICROFINANCE EVENT: Promoting Financial Capability and Consumer Protection – A Step Forward Towards Financial Inclusion in Africa, 8-9 September 2009 in Accra, Ghana, Organized by German Development Cooperation, the World Bank, United Kingdom Department for International Development (DFID) and United States Agency for International Development (USAID)

Event Name: Promoting Financial Capability and Consumer Protection – A Step Forward Towards Financial Inclusion in Africa

Event Description: Conference

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

Cost: Not available. Please inquire with the contact person provided below.

Summary of Event: The two-day conference aims to discuss whether and how financial inclusion can be strengthened, share and learn from individual country experiences, and establish a roadmap that will define the roles and responsibilities of all stakeholders.

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 Sally Levy -

MICROFINANCE EVENT: The Potential and Limitations of Index-based Weather Insurance: Mali and Peru – a Microfinance Learning and Innovation Seminar from the US Agency for International Development (USAID), June 24th 2009

Event Name: The Potential and Limitations of Index-based Weather Insurance: Mali and Peru

Event Description: This session will discuss the potential and limitations of index-based weather insurance in Mali and Peru.

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

Cost: Free. Seating is limited so reserve a seat or participate remotely via webinar or phone.

Summary of Event:  The case of Peru will be examined as index-based weather insurance has been introduced here. Pre-feasibility work in Mali will also be presented in order to understand whether index-based weather insurance has potential here.  

by Zoran Stanisljevic -

PAPER WRAP-UP: Will the Bottom of the Pyramid Hit Bottom? The Effects of the Global Credit Crisis on the Microfinance Sector, by the United States Agency for International Development (USAID)

By Barbara Magnoni and Olga Jennifer Powers of EA Consultants, published by the United States Agency for International Development (USAID), March 2009, microReport number 150, 54 pages, available at: 

http://collab2.cgap.org//gm/document-1.9.34169/11Will%20the%20Bottom%20of%20the%20Pyramid%20Hit%20Bottom_The%20Effects%20of%20the%20Global%20Credit%20Crisis%20on%20the%20Microfinance%20Sector.pdf

The produced report by USAID provides an assessment on the impact of the financial crisis on the microfinance sector.  The paper provides a framework for assessing the impact of the crisis on the microfinance sector by analyzing the effects on both the liabilities side (access to finance, cost of funding, financial risk) and the asset side (portfolio growth, portfolio risk, portfolio quality) of an MFI’s (Microfinance Institutions) balance sheet in order to determine the extent that MFIs may have been impacted.

by Zoran Stanisljevic -

MICROFINANCE EVENT: Will the Bottom of the Pyramid Hit Bottom? The Effect of the Financial Crisis on the Microfinance Sector, May 18, 2009, New York City, presented by Women Advancing Microfinance International and sponsored by USAID

Monday, May 18, 2009, New York City, New York.

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

by Ryan Hogarth -

MICROFINANCE EVENT: USAID’s Microfinance News-Source, microLINKS, will Host Online Discussion on Value Chains for Vulnerable Populations

Speaker’s Corner 32: Value Chains for Vulnerable Populations

April 28 – 30, 2009, participate online: http://www.microlinks.org/ev.php?ID=37239_201&ID2=DO_COMMUNITY

by Bharathi Ram -

MICROCAPITAL STORY: United States Agency for International Development (USAID) and CARE launch Productive Safety Net Project (PSNP) PLUS to Improve Microfinance in Ethiopia

United States Agency for International Development (USAID) and US charity CARE have launched a new project in Ethiopia to improve financial services and help rural households graduate from the Productive Safety Net Program (PSNP), the community development program started by the Ethiopian Government. According to a press release on the Ethiopian news and information portal nazret.com, the PSNP PLUS project is being implemented by a consortium of national and international non-government organizations (NGOs). CARE will be responsible for the overall consortium management and implementation of the program, in collaboration with Catholic Relief Service (CRS), the official international humanitarian agency of the U.S. Catholic community, the Relief Society of Tigray (REST), an Ethiopian non-governmental development organization and Save the Children UK (SC-UK), the charity organization focusing on children. Technical assistance for PSNP PLUS from a microfinance perspective will be provided by CARE, the Feinstein International Center of Tufts University will assist with impact assessment and The Netherlands’ based development organization SNV will provide value chain development assistance.

by Ryan Hogarth -

MICROFINANCE PAPER WRAP-UP: “microLINKS Connections, March 2009,” by USAID

The United States Agency for International Development (USAID) has released its March edition of microLINKS Connections. The monthly newsletter reports on the work of USAID and its partners in building microenterprises, summarizes research papers and resources on microfinance, and announces upcoming microfinance events. To subscribe to microLINKS Connects and for a complete version the March edition please refer to this link. Highlights from the March edition are as follows.

by Lori Curtis -

MICROCAPITAL STORY: USAID AND RBAP’S MABS Expands Rural Banking Nationwide in The Philippines

The Philippines’ Microenterprise Access to Banking Services (MABS), a program of the Rural Bankers Association of the Philippines (RBAP) and the United States Agency for International Development (USAID) plans to expand and increase the number of borrowers using rural banks nationwide. MABS aims to increase the number of borrowers among participating rural banks by more than 375 thousand from 2008 to 2013. The program originated in Mindanao, where it has provided training and technical assistance to rural banks for the past ten years and acts as the implementing agency for USAID’s Mindanao Peace and Development Fund (MPAD Fund) and plans to expand throughout the Philippines. The Mindanao Economic Development Council (MEDCo) is the government implementation and overseeing body for MABS.