by Greg Casey -

MICROCAPITAL STORY: South African Microfinance Institution Blue Financial Services (BFS) Begins Operations in Swaziland

Blue Financial Services (BFS), a South African microfinance institution (MFI), has opened its first branch office in Mbabane, Swaziland as part of a plan to expand across the African continent. According to CEO Dave van Niekerk, the for-profit corporation “is committed to servicing the unbanked and underserved employed citizens of the kingdom who presently do not qualify for financial offerings from the traditional banks” (press release 15.07.2008)

by Ryan Benson -

MICROCAPITAL STORY: FINCA Azerbaijan to Increase Microlending to Farmers

FINCA Azerbaijan has announced plans to increase microlending to farmers in an effort to support food security in the face of an emerging world food shortage. Currently, 30 percent of the nonprofit’s loan portfolio represent agricultural microenterprises, about USD 17 million. In his statement announcing the plan, FINCA Azerbaijan Director Jeff Flowers indicated that the increase in farm crediting is intended to ensure food security, but he did not offer any projections on the size of the increase.

by Ipek Kuran -

MICROCAPITAL STORY: Ecobank Completes its Takeover of Kenya’s East African Building Society (EABS) Bank

Ecobank Transnational Incorporated (ETI), a Pan African bank based in Togo, acquired a 75 percent stake in Kenya’s East African Building Society (EABS) Bank. The transnational changed the bank’s name to Ecobank Kenya Limited and appointed businessman Peter Kanyago as the new chairman. The Pandit family, founders and the single largest shareholders of EABS, will retain 25 percent representation in Ecobank Kenya Limited. Although the value of the deal was not disclosed, it was estimated to total USD 18,6 million (KES 1.3 billion).

by Anthony Busch -

WHO’S WHO IN MICROFINANCE: Mr. Shafiqual Haque Choudhury of the Association for Social Advancement (ASA) in Bangladesh

Shafiqual Haque Choudhury is the founder and President of the Association for Social Advancement (ASA), a microfinance institution (MFI) based in Dhaka, Bangladesh serving over 5.5 million borrowers and reporting a loan portfolio of BDT 32.4 billion, or USD 482.5 million, in April 2008. Additionally, he recently served as an Advisor to the Caretaker Government of Bangladesh (December 2006 through 2007) with responsibility for the Ministry of Agriculture, Youth & Sports, and Cultural Affairs.

by Sarah Knapp -

MICROCAPITAL STORY: Private Equity Group Emerging Capital Partners (ECP) Invests $15m in Microfinance Institution (MFI) Blue Financial Services (BFS)

Washington D.C.-based private equity group, Emerging Capital Partners (ECP), recently made an investment of USD 15 million to South African microfinance institution (MFI) Blue Financial Services Ltd. (BFS). Through shares and convertible bonds, ECP will finance the investment through its Africa Fund II to help BFS expand as well as assist BFS in generating working capital.

by Anthony Busch -

MICROCAPITAL STORY: AfriCap Microfinance Fund (AfriCap) of Mauritius Makes a $1.1m Equity Investment in Société de Financement de la Petite Entreprise (SOFIPE) of Burkina Faso

The Consultative Group to Assist the Poor (CGAP) reports in its list of recent transactions that AfriCap Microfinance Fund (AfriCap) made a USD 1.1 million equity investment in the newly established Société de Financement de la Petite Entreprise (SOFIPE), a microfinance institution (MFI) in Burkina Faso, on March 1st, 2008.

by Stephen Son -

MICROCAPITAL STORY: MoneyBox Africa, an Initiative of Integrated Capital Services, Interswitch, e-Tranzact, and SWIC Microfinance Bank, to Collaborate with Germany Mobile Payment Company Paybox to Launch Pan-African Mobile Banking System

MoneyBox Africa, an initiative of three Nigerian companies led by investment institution Integrated Capital Services, has announced a partnership with German mobile payment company Paybox in hopes of developing a pan-African mobile banking system.

by Anthony Busch -

MICROCAPITAL EVENT: 2008 World Business and Development Awards, for Which Microfinance Institutions (MFIs) are Eligible, Currently Accepting Nominations

WORLD BUSINESS AND DEVELOPMENT AWARDS

SEPTEMBER 24, 2008, NEW YORK

The International Chamber of Commerce (ICC), an institution promoting trade and investment across borders since 1919, announced on April 16th through a press release that the bi-annual World Business and Development Awards (WBDA) are now accepting nominations for the 2008 competition. The awards will recognize private sector institutions which support the United Nations Development Programme (UNDP) Millennium Development Goals (MDGs), one of which is the eradication of extreme poverty, the primary social motive for many microfinance institutions (MFIs).

by Stephen Son -

MICROCAPITAL STORY: Non-Profit ACCION International and Africa’s Ecobank Group Launch Microfinance Institution (MFI) in Ghana

ACCION International, a microfinance-oriented non-profit, and Ecobank, a banking group with operations throughout Africa, have partnered to launch microfinance bank EB-ACCION Savings & Loan in Ghana.

by Jake Keller -

MICROCAPITAL STORY: ASA International Secures $125m in Largest Microfinance Equity Commitment to Date

Catalyst Microfinance Investors (CMI) of Mauritius announced on Tuesday that it had raised USD 125 million through the largest microfinance equity sale to date. Investors included private individuals as well as a number of institutional investors such as the Dutch pension fund, ABP and the US financial services organization, TIAA-CREF. The majority of the funds will be channeled to ASA International of Bangladesh, who will use the increased capital to expand operations in Africa and Asia.