by the MicroCapital Team -

SPECIAL REPORT: Stakeholders Fearful, But with Tentative Hope Too in e-MFP’s Just-published “COVID-19 Financial Inclusion Compass”

TheEuropean Microfinance Platform European Microfinance Platform (e-MFP) has published the COVID-19 Financial Inclusion Compass, a special edition of the Compass series specifically focused on the current challenges, medium-term priorities, concerns, opportunities and forecasts for a sector facing probably the greatest crisis in its modern history.

The world – the financial inclusion sector included – is in the midst of twin crises: (1) a novel and highly contagious virus with no vaccine or cure that shows no signs of abating; and (2) a genuinely global recession as a result of the unavoidable containment measures put in place. The situation is uncertain and dynamic. Six months from now, the landscape will

by Jessica McLeod -

MICROFINANCE PAPER WRAP-UP: “COVID-19 Crisis Through a Migration Lens,” by Dilip Ratha et al, published by World Bank Group

This paper explores the impact of the COVID-19 pandemic on past and potential future trends in international economic migration and remittances. The first section focuses on the general impact of the pandemic, considering topics such as changes in the earnings of migrant workers, declines in remittance flows and policy responses. The second section delves into the cost of remittances and migration patterns in six regions:

by Jessica McLeod -

MICROFINANCE PAPER WRAP-UP: “The Impact of the COVID-19 Pandemic on Education Financing,” by Samer Al-Samarrai et al, published by the World Bank Group

This paper explores the economic implications of COVID-19 and arguments for mobilizing resources from government and development partners to alleviate educational losses in terms of educational services, student enrollment rates and student achievement. The authors also consider recent policy interventions and proposals in contrast to similar efforts made during past crises. The

by Simrun Kothari -

MICROCAPITAL BRIEF: Agence Française de Développement (AFD) Loans $13.6m to NamPost for Microfinance Lending to Pensioners in Namibia

Agence Française de Développement (AFD), the overseas development agency of the French government, recently issued a concessional loan of NAD 235 million (USD 13.6 million) to NamPost, Namibia’s postal service, to increase its

by Jessica McLeod -

MICROCAPITAL BRIEF: Via Atlas, CGAP Begins Releasing Results from Biweekly “Pulse” Survey of Microfinance Institutions (MFIs) on COVID-19 Impact

In an effort to understand the needs of microfinance institutions (MFIs) and their clients during the COVID-19 pandemic, the US-based NGO CGAP (Consultative Group to Assist the Poor) recently launched a biweekly survey called the “Global Pulse Survey of Microfinance Institutions.” CGAP is releasing the results on the Atlas data platform, which is a service of Italy-based MFR (MicroFinanza Rating), in the form of 13 charts. These charts can be manipulated to group the data by

by the MicroCapital Team -

SPECIAL REPORT: COVID-19 Edition of Financial Inclusion Compass Survey Launches – Looking at Challenges and Priorities of a Sector Under Threat – An Invitation to Participate

From European Microfinance Platformthe European Microfinance Platform (e-MFP): e-MFP has launched the third e-MFP survey of financial inclusion trends, but as a special edition focused solely on the challenges and priorities facing the sector as a result of the COVID-19 public health and economic crisis. Several months into this global crisis, with its critical threat to vulnerable populations, financial inclusion providers and the entire ecosystem that supports them, the scale of the challenges ahead is becoming increasingly clear, and stakeholders can think not just about the immediate effects, but their priorities in the medium term as the sector recovers from this and puts in place measures to

by the MicroCapital Team -

MICROCAPITAL BRIEF: 9 Microfinance Investment Vehicles Coordinate Response to Effects of Pandemic on MFIs, MSMEs in 80 Countries

The COVID-19 pandemic and efforts to reduce its health impacts have had major negative economic consequences for micro-, small and medium-sized enterprises (MSMEs). These enterprises thus are having difficulty repaying the loans they have outstanding from microfinance institutions (MFIs) and other retail lenders, leading to liquidity challenges for these lenders. In response, nine investors in these lenders, which have an aggregate of USD 15 billion invested in 80 low- and middle-income countries, are working together to support the long-term viability of the retail financial services providers (FSPs).

The nine investors, which manage a range of microfinance investment vehicles (MIVs) and other funds seeking to generate positive social impact, have arrived at a non-binding agreement to

by Simrun Kothari -

MICROCAPITAL BRIEF: BBVA Microfinance Foundation (BBVAMF) Offers Repayment Flexibility, New Loans to Clients in 5 Countries in Latin America, Caribbean in Response to COVID-19 Pandemic

The nonprofit BBVA Microfinance Foundation, which was launched by the Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) in 2007, recently responded to the COVID-19 pandemic by offering clients of its six microfinance institutions (MFIs) grace periods of two to four months on outstanding loans, rescheduling of outstanding loans and additional funding. They can also access

by MicroCapital Research -

MICROFINANCE PAPER WRAP-UP: “Guidance Note, Business Continuity: Attention Points for Business Continuity for MFIs in View of the COVID-19 Outbreak,” published by ADA

By Hans Hekkenberg et al, published by ADA (Appui au Développement Autonome), March 2020, 20 pages, available at http://www.ada-microfinance.org/download/6423/guidance-note-bc-march2020.pdf

This document lists areas of concern for microfinance institutions (MFIs) regarding their crisis management related to the COVID-19 pandemic. Its objective is to

by Anna Gravois -

MICROFINANCE PAPER WRAP-UP: “The Digital Lives of Refugees: How Displaced Populations Use Mobile Phones and What Gets in the Way,” Published by GSMA

This is a summary of a paper published by the Groupe Speciale Mobile Association (GSMA), July 2019, 87 pages, available at https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2019/07/The-Digital-Lives-of-Refugees.pdf

Mobile technology in general, as well as mobile network operators in particular, are becoming increasingly important to the delivery of aid to populations in crisis. This report addresses the access to, use of, and barriers to mobile technology among refugee populations.

The authors conducted 3,000 face-to-face and telephone interviews as well 55 focus group discussions with refugees from Jordan, Rwanda and

by Jolene Khor -

MICROFINANCE PAPER WRAP-UP: “Global Outreach & Financial Performance Benchmark Report – 2017-2018;” By Mohita Khamar, MIX

By Mohita Khamar and the Microfinance Information Exchange (MIX) operations team; published by MIX; May 2019; 42 pages; available at https://www.themix.org/mixmarket/publications/global-outreach-and-financial-performance-benchmark-report-2017-2018

This report presents outreach and financial performance data provided to MIX by 762 financial service providers (FSPs) worldwide for FY2017. Year-on-year analysis of the data shows an increase in gross loan portfolio to USD 112 billion

by Michelle Fleming -

MICROCAPITAL BRIEF: Kiva, UNCDF, UNDP Using Blockchain to Build Digital ID System in Sierra Leone to Boost Financial Inclusion

President Julius Maada Bio of Sierra Leone recently signed a memorandum of understanding under which US-based nonprofit Kiva, the UN Capital Development

by Matthew ONeill -

MICROFINANCE PUBLICATION ROUND-UP: Unrealistic Expectations in Impact Investing, Valuing Microfinance Institutions (MFIs), Banking Costs in Kenya

“Marginalized Returns,” by Mara Bolis and Chris West, published by the Stanford Social Innovation Review, Fall 2017, 3 pages, available at:
https://ssir.org/articles/entry/marginalized_returns

The authors of this article cite the Global Impact Investing Network’s (GIIN’s) “2016 Annual Impact Investor Survey,” which reports that 84 percent of 158 investors who seek “measurable social and environmental impact alongside a financial return” in particular are expecting “risk-adjusted market-rate returns.” Ms Bolis and Dr West state that netting annual returns of 10 to 15 percent would

by Jacob O'Driscoll -

MICROCAPITAL BRIEF: ZAMFI Blames Zimbabwe’s Liquidity Challenges for Microfinance Portfolio-at-risk (PAR) Ratio Surpassing 12%

The Zimbabwe Association of Microfinance Institutions (ZAMFI), a 100-member advocacy group, recently announced its members’ aggregate portfolio-at-risk (PAR) ratio rose from 8.3 percent in December 2016 to 12 percent in March 2017, citing both “corporates and individuals fail[ing] to honour their debt obligations due to the liquidity crisis.”

by Christian Chartier -

MICROCAPITAL BRIEF: Hedge Fund Route One Buys 0.88% Equity Stake in India’s Bharat Financial Inclusion for $15m

US-based Route One Fund I LP recently spent approximately INR 990 million (USD 15.4 million) to purchase 0.88 percent of the shares of Bharat Financial Inclusion, a for-profit non-banking microfinance institution (MFI) in India, via an open market transaction.

by Imke Herholdt -

MICROFINANCE EVENT: BWTP, FDC, ADA, UNCDF, ADB to Co-host “Mekong Financial Inclusion Forum”, July 11-14, 2016, Phnom Penh, Cambodia

Event Name: Mekong Financial Inclusion Forum

Event Dates: July 11-14, 2016

Event Location: Intercontinental Hotel, Phnom Penh, Cambodia

by Caroline Zhu -

MICROCAPITAL BRIEF: United Nations Capital Development Fund (UNCDF), Alliance for Financial Inclusion (AFI) Partner to Advance Financial Inclusion in Association of Southeast Asian Nations (ASEAN) Region through Policy, Digital, Gender Modes

The Alliance for Financial Inclusion (AFI), a network of 124 financial policymaking institutions from developing and emerging economies, and the United Nations Capital Development Fund (UNCDF), a UN agency that works to increase access to microfinance and other forms of capital in developing countries, recently launched a strategic partnership to reinforce collaboration and knowledge exchange on financial inclusion issues within the 10 member countries of the Association of Southeast Asian Nations (ASEAN).

by Kevin van den Brink -

MICROCAPITAL BRIEF: India’s SKS Microfinance Seeks to Go Paperless with IBM MobileFirst Tablet System

SKS Microfinance Limited, a for-profit microfinance institution (MFI) headquartered in Hyderabad, India, recently partnered with IBM MobileFirst, the mobile division of US-based information technology company International Business Machines (IBM), in an effort to improve staff productivity in acquiring customers, completing loan disbursements and collecting repayments [1][2].