by the MicroCapital Team -

USAID Grants 9.9 mm to Microfinance Organizations in Iraq

The United States Agency for International Development (USAID) awarded USD 9.9 mm in grants to establish and/or to continue to develop sustainable Iraqi microfinance institutions. The USAID is a U.S. government organization that was created on September 4th 1961 to administer foreign economic assistance programs. These microfinance corporations throughout Iraq currently support lending to approximately 17,000 active clients with a total loan portfolio of approximately USD 19 mm.

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by the MicroCapital Team -

World Council of Credit Unions (WOCCU) Receives USD 27.7 mn Funding from Microfinance Investment Support Facility of Afghanistan (MISFA) and United States Agency for International Development (USAID)

WOCCU has received USD 19.4 mn and USD 8.3 mn funding from USAID and MISFA respectively to expand its presence in Afghanistan.

The USAID funding will be used to set up 20 credit unions and points of service, designated as Investment and Finance Cooperatives (IFCs) in Northern, Southern and Eastern Afghanistan. This funding is part of USAID’s USD 80 mn support to the Academy for Educational Development’s (AED) Agricultural, Rural Investment and Enterprise Strengthening Program (ARIES). This ARIES program aims to convert back into productive cultivation those farmers who have lapsed into opium cultivation in this conflict-ravaged region. WOCCU, which is associated with AED, will receive USD 15.4 mn as a grant and the remaining USD 4 mn will be in the form of a convertible subordinated debt to equity investment in the project IFCs.

The USD 8.3 mn from MISFA will be specifically used to set up 5 IFCs in Northern Afghanistan. WOCCU started its Afghanistan operations in collaboration with MISFA in 2004 with a USD 1.1 mn program. By the end of 2005, nearly 3000 Afghans are members of two credit unions in Mazhar-e-Sharif and Sheberkhan, both in Northern Afghanistan. The success of these two operations seems to have been the driver for additional funding not just from MISFA but also from USAID.
Continue reading “World Council of Credit Unions (WOCCU) Receives USD 27.7 mn Funding from Microfinance Investment Support Facility of Afghanistan (MISFA) and United States Agency for International Development (USAID)”

by the MicroCapital Team -

Microfinance Investments Seen as a Cornerstone in the Rebuilding of Iraq- USAID Laying the Foundations for Growth

In the wake of the regime change in Iraq, USAID has taken the initiative in establishing microcredit programs through Iraqi banks and lenders to bolster the infant economy. Banking reforms on the whole have been successful in Iraq thus far, and microfinance schemes are seen as a necessary component to support the small businesses that will emerge to shrink the country’s unemployment problem.
Continue reading “Microfinance Investments Seen as a Cornerstone in the Rebuilding of Iraq- USAID Laying the Foundations for Growth”

by Vaughn Rajah -

MICROCAPITAL BRIEF: Incofin Launches Water Access Acceleration Fund (W2AF) with $39m to Invest in Africa, Asia

The Belgium-based investment firm Incofin recently launched the Water Access Acceleration Fund (W2AF), a private equity fund with the objective of reaching 30 million people with access to safe drinking water, primarily in Africa and Asia. In particular

by Saulius Ramanauskas -

MICROCAPITAL BRIEF: DFC, Gazelle Finance Announce Technical Assistance Funding for SMEs Displaced from Ukraine to Georgia by War

The US International Development Finance Corporation (DFC) and Georgia-based Gazelle Finance recently launched a facility to assist Ukrainian enterprises that have been displaced to Georgia as a result of the war between Russia and Ukraine. In particular, the funding is for technical assistance for small and medium-sized enterprises (SMEs). DFC CEO Scott Nathan noted the intent of the facility to

by Hasnat Aslam -

MICROCAPITAL BRIEF: Strategic Impact Advisors (SIA) Launches Campaign to Boost Personal, Business Financial Literacy Among Spanish-speaking Women

US-based Strategic Impact Advisors (SIA) recently released a set of free resources to deliver financial education to women in Latin America, including 22 audio lessons spanning 1 to 4 minutes in length. The lessons mainly cover topics relating to digital financial services, including using

by Sheen Gupta -

MICROCAPITAL BRIEF: Toronto Centre Releases Gender Toolkit for Financial Regulators

The Canada-based NGO Toronto Centre, with funding from the US Agency for International Development (USAID), recently released a toolkit titled First Step: Integrating Gender into Technology-enabled Financial Sector Supervision, “to assist financial supervisors from emerging markets with integrating gender dimensions into their supervisory practices.” The toolkit, which emphasizes the relevance of gender awareness and inclusion, offers

by Zach Deluca -

MICROFINANCE PAPER WRAP-UP: “Impact Evaluation of Credit Guarantee Schemes in Agriculture,” Published by FAO

This paper reviews the impacts of multiple agricultural partial credit guarantee schemes (PCGSs), through which governments agree to absorb a portion of lenders’ losses on particular loans or loan portfolios. Governments often use PCGSs to de-risk financial institutions’ lending to small and medium-sized enterprises (SMEs), especially as a countercyclical tool in times of

by Harriet Ritchie -

MICROCAPITAL BRIEF: DFC to Invest $40m in Housing, Microfinance, SME Lending, Agriculture in Guatemala

The government-backed US International Development Finance Corporation (DFC) recently agreed to invest USD 40 million in Guatemala in the following segments: (1) a loan of USD 19.5 million to Guatemala-based real estate company Destino Desarrollos to aid in the construction of “approximately 2,000 homes and associated infrastructure” deemed “affordable” in the cities of Coban, Fraijanes and Quetzaltenango; (2) with support from the US Agency for International Development (AID), a loan guarantee of USD 15 million to Guatemala-based bank Interbanco, to cover the local-currency equivalent of USD

by Jessica McLeod -

MICROCAPITAL BRIEF: Banco del País, Citibank, DFC, Microsoft, Government of Taiwan, Collaborate to Support Women-led SMEs, “Gender-smart” Investing, Technology Infrastructure

The US International Development Finance Corporation (DFC), a government-backed institution, recently announced it will participate in the following initiatives promoting the economic empowerment of women:

1) The office of the US President and DFC increased the target of funds to be mobilized through the 2X Women’s Initiative of the Women’s Global Development and Prosperity (W-GDP) Initiative to USD 6 billion. 2X Women was launched in 2018 and has since documented

by the MicroCapital Team -

MICROCAPITAL BRIEF: 40 Funders Commit $75m via World Economic Forum COVID Response Alliance for Social Entrepreneurs

The World Economic Forum, a Switzerland-based nonprofit, recently convened the COVID Response Alliance for Social Entrepreneurs, through which 40 organizations are aligning their efforts to reduce the economic and other impacts of the COVID-19 pandemic. These 40 organizations support 15,000 entrepreneurs who have served a total of 1.5 billion customers in 190 countries by “protecting livelihoods; mitigating millions of tonnes of carbon dioxide; improving access to health, sanitation, education and energy; [and having] driven social inclusion movements for the disabled, homeless or those with refugee status.”

The alliance members have committed a total of USD 75 million in response to the pandemic. In addition, they are working together to assess needs; increase recovery funding; coordinate legal, technological and

by Anna Gravois -

MICROCAPITAL BRIEF: Angaza, SIMA Launch Distributor Financing Fund for Off-grid Solar Power

Angaza, a provider of “pay-as-you-go” metering technology, and US-based Social Investment Managers and Advisors (SIMA), recently announced the launch of the SIMA Angaza Distributor Financing Fund (DFF), an investment vehicle that will lend to distributors of off-grid solar energy equipment. The partners expect the use of Angaza’s data tools by DFF’s partner distributors to

by Anna Gravois -

MICROCAPITAL BRIEF: G7 Nations Raise $2.5b for 2X Challenge for Women Entrepreneurs

The Group of Seven (G7) large economies recently announced that they have mobilized a total of USD 2.47 billion in “gender-smart” investments as part of the 2X Challenge, which was initiated in 2018 by the US government’s Overseas Private Investment Corporation (OPIC). The goal of the 2X Challenge is to

by Michelle Fleming -

MICROCAPITAL BRIEF: “FINCA Forward” to Match Fintech Firms, Microfinance Institutions (MFIs) for New Product Testing

The Foundation for International Community Assistance (FINCA International) recently announced a partnership with the US Agency for International Development’s (USAID’s) Partnering to Accelerate Entrepreneurship (PACE) Initiative to launch

by the MicroCapital Team -

MICROCAPITAL BRIEF: Microfinance Institutions LOLC Cambodia, VisionFund Lanka Each Borrow $2.4m from Grameen Credit Agricole Foundation

The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, recently informed MicroCapital that it has issued three-year loans totaling the equivalent of USD 4.7 million to two microfinance institutions with ties to Sri Lanka.

LOLC Cambodia, which is owned by Sri Lanka’s LOLC Group, borrowed half of the total, denominated in US dollars. LOLC Cambodia was founded in 1994 as Thaneakea Phum (Cambodia) by US-based NGO Catholic Relief Services. The MFI has since been acquired by Sri Lanka’s LOLC Group, which is a member of Orix, a Japanese conglomerate. LOLC Group, whose name derives from

by the MicroCapital Team -

MICROCAPITAL BRIEF: 11 Women Offered MFI Jobs After Completing Afghanistan Microfinance Association Apprenticeships

A group of 75 women recently completed nine-month microfinance apprenticeships in the Afghan provinces of Balkh, Herat and Kabul. Eleven of these have been offered paid positions within the microfinance institutions (MFIs) at which they trained, Afghan Rural Finance Company, the First Microfinance Bank of Afghanistan, the Foundation for International Community Assistance (FINCA) Afghanistan and Oxus Afghanistan. Three additional MFIs, Mutahid, Exchangerzone and Hand in Hand, have agreed to host women apprentices in the future.

The program was funded by

by Ryan Gauthier -

MICROCAPITAL BRIEF: Impact Investment Exchange (IIX) Preparing $8m Women’s Livelihood Bond Issue to Fund Microfinance, Vocational Training in Southeast Asia

Impact Investment Exchange Asia (IIX), a Singapore-based facilitator of investment in social enterprises, recently announced that it has raised USD 8 million via a “Women’s Livelihood Bond” issue to support women-owned businesses in Southeast Asia.

by the MicroCapital Team -

SPECIAL REPORT: Realizing Potential and Minimizing Risk through Client Protection and Developing Financial Capability in Southeast Asia

ABanking With the Poor Network diverse set of panelists at this session of the Mekong Financial Inclusion Forum agreed that providing financial education can be expensive and yet often fails to produce measurable outcomes. Jayshree Venkatesan, a financial inclusion consultant, stated that “results from financial literacy campaigns are at best mixed.” Shane Nichols, Program Director for Good Return, said that the rise of randomized controlled trials has helped his organization discover that although “we used to do pre- and post-tests showing people gained knowledge…sustained behavior-change was virtually non-existent.”

Ms. Venkatesan explained that “there are a number of things that limit these efforts. They cost a lot of money. Most of these tend to be