by Bharathi Ram -

MICROCAPITAL STORY: Blue Financial Services in South Africa to Continue Microfinance Growth in Africa But Lessens Pace

Blue Financial Services, the South Africa based microfinance institution (MFI) will remain focused on expansion in Africa and will begin operations in more African countries this year, according to a press release on AllAfrica.com. In this regard, the release quotes Blue’s CEO Dave van Niekerk as saying that Blue’s plans in Africa come despite a slowdown in the ‘pace of its expansion due to the global financial crisis.’ [1]. Per information currently available, Blue’s immediate plans also include the setting up of a branch in Ghana over the next 2 months [2]. (AllAfrica.com is a news and information portal owned by AllAfrica Global Media, a multi-media content service provider, systems technology developer and distributor of African news and information worldwide.)

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 Uyen Tran -

MICROFINANCE STORY: Small Business Development Finance Trust (SBDFT) of Guyana Provides Over 540 Microfinance Loans Equivalent to $711,046

According to the Starbroek News, the Small Business Development Finance Trust (SBDFT) of Guyana reported that it had funded over 540 micro and small loans to the value GYD 147.2 million (equivalent to USD 711,046) in 2008. SBDFT was created in 2002 with the objective to provide financial and advisory services to low income households in Guyana. Starbroek News reported that in the Trust’s Annual Report, it stated an accumulated surplus equivalent to USD 179,638 as of December 2008 compared with USD 146,801 at the end of 2007.

by Sally Levy -

MICROCAPITAL STORY: European Bank for Reconstruction and Development (EBRD) Provides $4m Credit Line to Demir Kyrgyz International Bank (DKIB) of the Kyrgyz Republic for Microfinance Activities

The European Bank of Reconstruction and Development (EBRD), a multilateral development institution that fosters private sector investment, will provide a USD 4 million line of credit to the Demir Kyrgyz International Bank (DKIB). DKIB will use the line of credit to extend loans to micro, small and medium enterprises (MSME) in the Kyrgyz Republic. In addition to the line of credit, the EBRD will offer training in credit appraisal to DKIB staff and technical assistance. The loans made by DKIB to MSME’s will range from USD 10,000 to USD 400,000.  

by Zoran Stanisljevic -

MICROCAPITAL STORY: Mobile Money Service Provider Mi-Pay Forms Partnership with Small World Financial Services to Create and Expand their Mobile Money Distribution Network

Mi-Pay, a mobile money company based in the United Kingdom, has recently announced that it has partnered with Small World Financial Services (a global money transfer business based in Europe) to globally expand mobile money payment solutions.  The partnership will focus on providing operators with solutions for international prepay phone top-up and global money transfer functionality to over 30 countries.  No additional information regarding how the network will function or its scope is provided.

According to Business Intelligence Middle East, a business information company based in Dubai, the partnership with Small World and Mi-Pay would provide a mix of operational, regulatory consultation, business and technical processes, and market knowledge to facilitate mobile money payment solutions globally.  Mobile phone top-up is a recharge service that allows customers in one country to buy airtime for people in different countries via the Internet or on a foreign mobile network for prepaid mobile phones.  Mi-Pay’s global top-up service hub will also provide Small World the ability to offer international prepay phone airtime to its customers.  In turn Mi-Pay will be able to extend its services into new countries and regions while leveraging the distribution network to work earlier with clients in the regulatory, compliance and payment process.

by Uyen Tran -

MICROCAPITAL STORY: Opportunity International’s MicroEnsure of the United Kingdom to Launch Microinsurance Program for Climate Change and Crop Failure in India

MicroEnsure, an insurance intermediary established in 2005, stated that it plans to launch a microinsurance scheme next year for up to 600,000 farmers in India’s Kolhapur province. MicroEnsure is also a subsidiary of Opportunity International, a global non-profit microfinance network, which was formed in 1974, has assets totaling USD 736 million as of 2007 and lends to over 1 million people globally. The plan will insure farmers against their rice crops failing due to drought or heavy rains. Furthermore, the plan is to help farmers access larger loans to pay for seeds and equipment. According to the World Bank, India’s rural population account for about 72 percent of the India’s 1.1 billion people, and most of the rural poor rely on rain-fed agriculture.

by Sally Levy -

MICROCAPITAL STORY: CGAP (Consultative Group to Assist the Poor) and the GSM Association Release Mobile Money Market Sizing Study which Estimates Mobile Financial Services will Reach $5b in 2012

CGAP (Consultative Group to Assist the Poor) and the GSM Association (GSMA) will publish the results of a study estimating the size of the mobile financial market at the Mobile Money Summit in late June 2009. It will be announced that the CGAP-GSMA Mobile Money Market Sizing Study found that the market for mobile financial services could increase to USD 5 billion by 2012.

by the MicroCapital Team -

MEET THE BOSS: Jean-Pierre Klumpp of BlueOrchard Finance

Jean-Pierre Klumpp has been Chief Executive Officer of BlueOrchard Finance since 2008.

MicroCapital: Would you please tell us about the history of BlueOrchard?

JPK: The Dexia Micro-Credit Fund (DMCF), which we manage, was launched in 1998 by Dexia Asset Management. Jean-Philippe de Schrevel, at the time a financial analyst fully dedicated to this fund, founded BlueOrchard Finance in 2001 with two partners and took over the management of the microfinance portfolio for the DMCF. With just a little more than USD 10 million under management at the beginning, BlueOrchard started an impressive ascent to about USD 1 billion assets and eight microfinance investment vehicles under management today.

by Chinq Yee Chong -

MICROCAPITAL STORY: Microfinance Investors Back The Leapfrog Financial Inclusion Fund To Raise USD 44 Million For Microinsurance

The LeapFrog Financial Inclusion Fund recently announced that it has raised USD 44 million. This was reported on several news portals including Bloomberg, the Corporate Social Responsibility Newswire, the Press Portal website and CNBC. The fund has been billed as the world’s first investment fund that is focused on microinsurance. The fund aims to invest in or partner with businesses that offer insurance products and financial services to low-income communities throughout Africa and Asia, including India, Pakistan, South Africa and Uganda.

by Uyen Tran -

MICROCAPITAL STORY: Incofin of Belgium Invests in Asomi Finance Private Ltd. in India

Incofin, a Belgian microfinance fund manager that invests in microfinance institutions (MFIs), has taken a 34 percent stake in Asomi Finance Private Ltd. (Asomi FPL) in Assam, India. Asomi FPL is an institution that undertakes microfinance, income generation and development activities in the state. Over 90 percent of its operations is devoted to microfinance, and Asomi has grown from less than 4,000 borrowers in 2005 to over 30,000 reached through 40 branches as of 2008. Incofin was established in 1992, and this is Incofin’s first investment in India.

by Jaclyn Berfond -

MICROCAPITAL STORY: CGAP, Dell Foundation, Ford Foundation and MIX Market Announce New Social Performance Reporting Award Winners AMK, FINCA Peru, Prisma Peru and Asasah

The winners of a new Social Performance Reporting Award were announced at the Annual Social Performance Task Force Meeting in Madrid, Spain. AMK in Cambodia, FINCA Peru, and Prisma Peru received the Gold Award, and Asasah from Pakistan received the Silver Award.

by Jaclyn Berfond -

MICROCAPITAL STORY: BlueOrchard Finance Disburses Over USD 28m to Microfinance Institutions in May

BlueOrchard Finance disbursed over USD 28 million in loans to 13 microfinance institutions (MFIs) in May.  As reported to the CGAP Microfinance Dealbook, BlueOrchard Finance loaned USD 15.5 million through the Dexia Micro-Credit Fund and USD 1 million through the BBVA Codespa Microfinance Fund. BlueOrchard is also an advisor to the Microfinance Enhancement Facility, launched by the International Finance Corporation and KfW Entwicklungsbank, which disbursed its first four loans totaling USD 12 million.

by Zoran Stanisljevic -

MICROCAPITAL STORY: Grameen-Jameel Issues a USD 2.7 Million Local-Currency Guarantee to Aga Khan Agency, First Microfinance Institution (FMFI) Syria

Grameen-Jameel, a social business established in 2007 that serves the Arab microfinance industry, has recently announced that it has issued local-currency guarantee worth USD 2.7 million to Aga Khan Agency the First Microfinance Institution (FMFI) Syria, part of the Aga Khan Agency for Microfinance (AKAM).  The multi-million dollar credit facility focuses to improve the lives of 2,700 underprivileged Syrians through credit, deposits and other financial services.  No additional information regarding how the fund will function is provided.

by Jaclyn Berfond -

MICROCAPITAL STORY: Bill & Melinda Gates Foundation Gives USD 20m to World Bank to Establish Agriculture Finance Support Facility

The World Bank Group has announced the establishment of an Agriculture Finance Support Facility to support the expansion of rural finance in developing countries. The Facility is made possible by a USD 20 million grant from the Bill & Melinda Gates Foundation, through their Financial Services for the Poor program.

by Jaclyn Berfond -

MICROCAPITAL STORY: Triodos Bank Invests USD 900,000 in Microfinance Institutions in May

Triodos Bank has reported to the CGAP Microfinance Dealbook investments totaling approximately USD 900,000 this month.  The bank has invested 834,000 in IMON International in Tajikistan through the Triodos-Doen Foundation, and has loaned 61,000 to BICC in Honduras through the Hivos-Triodos Fund.