Concluding a deal signed with KFW in November 2005, FINCA Capital Fund received the second $15 million tranche of a $30 million loan. The loan benefits FINCA network affiliates in Eurasia, Latin America, and Africa.
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FINCA Uganda receives $1.1 million in Microfinance Investment from Hivos-Triodos Fund and Triodos Fair Share Fund
From The Hivos-Triodos Fund and Triodos Fair Share Fund, FINCA Uganda recently received a loan valued at 2 billion Ugandan Shillings (UGX), equivalent to about US$1.1 million. Founded in 1992, FINCA Uganda is part of the FINCA International network. The FINCA International network itself has programs in 21 countries and reported $98.4 million in total assets in their 2004 Annual Report. Each country program operates as a branch of the one international organization. Please refer to Additional Resources below for more information about the nature of Microfinance Networks.
responsAbility Global Microfinance Fund Makes Debt Investment Totaling USD $900,000 in FINCA Azerbaijan
The Foundation for International Community Assistance (FINCA) Azerbajian received 2 separate loans for $500,000 and $400,000 from the responsAbility Global Microfinance Fund. FINCA Azerbaijan is part of the FINCA International network, which developed the village banking method of microfinance which emphasizes the formation of community-based credit and savings associations. FINCA was incorporated in 1985 and expanded its activities beyond Latin America to Central Asia with the establishment of FINCA Kyrgyzstan in 1995. FINCA Azerbaijan was established in 1998.
Constanta Foundation of Georgia, FINCA Armenia, and Romania’s CAPA Finance Societate de Microfinantare SA Benefit from Oikocredit’s Microfinance Investments in Eastern Europe
Oikocredit’s latest round of microfinance investments has included several loans to microcredit organizations in Eastern Europe. Founded in 1975, Oikocredit is one of the larger microfinance investment funds, reporting total assets of $304 million as of year-end of 2005. $126 million of this is allocated to Microfinance Investments.
FINCA Microfinance Institutions in Azerbaijan, Tajikistan, Georgia, and Armenia Growing Rapidly on the Heels of New Investments
MicroCapital recently reported on a US$750,000 debt investment made by the Triodos-Doen Fund in FINCA Mexico, but recent financial reports from Eastern European and Central Asian FINCA organizations show that the growth of these microfinance institutions is by no means limited by geography. FINCA, which stands for the Foundation for International Community Assistance, is a global network of microfinance institutions that leverage the “Village Banking” methodology, a microfinance program that encourages community responsibility for financial services.
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Belgian Investment Company Incofin Invests Over å¥1.5 Million in Three Microfinance Institutions (Fundación ESPOIR, FINCA Kosovo, EDPYME Confianza)
Belgium investment company Incofin has invested å¥250,000 in Ecuadorian microfinance institution (MFI) Fundación ESPOIR, while Incofin’s Impulse Microfinance Investment Fund has invested å¥1 million in FINCA Kosovo, and å¥500,000 into Peruvian MFI EDPYME Confianza.
Continue reading “Belgian Investment Company Incofin Invests Over å¥1.5 Million in Three Microfinance Institutions (Fundación ESPOIR, FINCA Kosovo, EDPYME Confianza)”
FINCA Kyrgyzstan Receives $500,000 Microfinance Investment from Swiss ResponsAbility Fund
FINCA Microcredit Company in Kyrgyzstan recently received a $500,000 loan from the Swiss based ResponsAbility Global Microfinance Fund.FINCA Microcredit Company, a microfinance institution (MFI), began its operations in 1995 as a member of the transnational microfinance network FINCA International, which started its first MFI in Bolivia in 1985.FINCA Kyrgyzstan provides loans to small businesses, individuals, and groups.The best information available indicates that there are about 11 Kyrgyz MFIs and FINCA Microcredit Company ranks as one of the top with a total loan portfolio of over $9.8 million for about 24,500 borrowers.
The ResponsAbility Global Microfinance Fund was founded in 2003 by Swiss financial institutions Credit Suisse, which is also the fund manager, Raiffeisen Banking Group, Baumann & Cie Banquiers, and the Andromeda Fund.PlaNet Finance, an international network of non-government organizations (NGOs), provides investment advisory services to the fund.ResponsAbility loans between $50,000 and $1.5 million to MFIs for a maximum of 5 years at a rate equal to “LIBOR plus full cost plus full risk.”The Fund’s total assets are reported as $11.45 million on MIX, the World Bank microfinance information clearinghouse, but are actually over $30 million according to individuals knowledgeable about the Fund.
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “FINCA International: History.”
3) MicroCapital Blog: “Microfinance Networks (wholesale transnational): Defined and Listed.”
4) “FINCA International: Where We Work”
5) MicroCapital Blog: “Big European Development Bank Makes $2 Million Microfinance Investment in Kyrgyzstan.”
6) “MicroFinance Network: FINCA Microcredit Company, Kyrgyzstan.”
7) “Founding Institutions: Credit Suisse Group.”
8) “Founding Institutions: Swiss Raiffeisen Group.”
9) “Founding Institutions: Baumann & Cie, Basel Private Bankers.”
10) “Founding Institutions: Andromeda Fund.”
11) MIX Market: “ResponsAbility Fund: Fund Description.”
12) MIX Market: “ResponsAbility Fund: Fund Instruments.”
12) PlaNet Finance: “ACTIVITIES/Financing.”
13) “Overview of the Microfinance Industry in the ECA Region in 2003.”
MICROFINANCE PAPER WRAP-UP: “Remote Coaching to Prevent Dormancy Among Low-income Savers,” by Scott Graham et al, Published by WSBI
This report addresses the phenomenon of “dormancy” in the savings accounts of new owners of financial accounts, whereby the newly established accounts go unused after initial deposits are complete. The authors describe the use of coaching – via phone calls and SMS messages – to increase
MICROCAPITAL BRIEF: Kuunda Raises $2m in Equity to Expand Short-term Financing Model for Mobile Money Agents, Retailers, Consumers into 7 Countries in Africa
Kuunda, a Mauritius-domiciled financial technology (fintech) company, has completed its seed funding round with USD 2.25 million in new investment, led by Accion Venture Lab, a unit of US-based nonprofit Accion. The other investors include FINCA Ventures, Future Africa, Greenhouse Capital, Kepple Africa Ventures, Launch Africa, Magic Fund, Mercy Corps Ventures and Seedstars. The funding is slated to boost Kuunda’s existing operations – which span Tanzania and Pakistan – and allow it to expand into Democratic Republic of Congo, Egypt, Malawi, Mozambique, Nigeria, Uganda and Zambia during the remainder of 2022 and 2023. The firm’s offerings are:
MICROCAPITAL BRIEF: Satisfied Producer of Palm Oil in DRC Has Been “Brought Back from the Brink,” DFIs Sell Debt Holdings in PHC to Maku; Funding to Improve Community Relationships Will Continue
Four European development finance institutions (DFIs) recently sold their debt holdings in Plantations et Huileries du Congo (PHC), a palm oil business in Democratic Republic of the Congo, to Maku Holdings, an affiliate of Kuramo Capital Management, which has offices in Kenya, Nigeria and the US. The DFIs are
MICROCAPITAL BRIEF: Microinvest of Moldova Borrows $3.4m from IIV for Microfinance, SME Lending
Agents for Impact (AFI), a Germany-based impact investing company, recently informed MicroCapital that it has lent the second of two tranches to Microinvest, a lender to households as well as small and medium-sized enterprises (SMEs) in Moldova, on behalf of Germany-based Invest in Visions (IIV). The disbursement of EUR 3 million (USD 3.4 million) completes an agreement between the parties valued at
MICROCAPITAL BRIEF: Agents for Impact Loans $3m from Invest in Visions to Imon International for Microfinance in Tajikistan
Two German impact investment firms, Agents for Impact (AFI) and Invest in Visions (IIV) recently collaborated to disburse USD 3 million in loan funds to Imon International, a microfinance institution (MFI) in Tajikistan. Imon offers individuals as well as small and medium-sized enterprises loans, savings, internet banking and
MICROFINANCE PAPER WRAP-UP: “Microfinance Clients Facing the COVID-19 Crisis: From Findings to Action for MFIs;” by Mathilde Bauwin, Thu Hien Dao; Published by ADA
This paper explores the impact of the COVID-19 pandemic on clients of microfinance institutions (MFIs) in terms of: “Which client segments are most affected? How are they coping with the situation? What are they doing to
MICROCAPITAL BRIEF: IIV Disburses $18m to Khan Bank of Mongolia, Including for On-lending to MSMEs Developing Post-COVID Business Models
Germany’s Invest in Visions (IIV), under the advice of Belgium-based Incofin Investment Management, recently lent USD 18 million to Khan Bank of Mongolia from the fund IIV Mikrofinanzfonds. The proceeds primarily are slated for on-lending to micro-, small and medium-sized enterprises (MSMEs), especially
MICROFINANCE PAPER WRAP-UP: “Digital Survey: Digitalisation in Financial Inclusion,” by Jessica Schicks, Published by BIO
Among a sample of 27 financial institutions in Africa, Asia and Latin America, Ms Schicks finds that commercial banks drive more innovation in the digitalisation of financial services, relative to the other institutions sampled. These other financial services providers are microfinance institutions (MFIs) with banking licenses and non-bank financial institutions (NBFIs) that provide leasing services to
MICROCAPITAL BRIEF: MAPFRE, GSI Launch $57m Global Social Impact Fund to Invest in Africa, Central America
The Spain-based insurance firm MAPFRE (Mutualidad Agrupación Propietarios Fincas Rústicas de España) and Global Social Impact (GSI), a Spanish investment firm, recently announced the creation of the Global Social Impact Fund to invest in “companies with high social impact on both frontier and emerging markets.” The fund, which will invest primarily via debt, has a target volume of EUR 50 million (USD 57.1 million). Its sectors of focus are agriculture, energy and financial inclusion. It will begin its deployments in sub-Saharan Africa and later expand to Central America. MAPFRE and Santa Comba, the Spanish holding company that is
MICROFINANCE PAPER WRAP-UP: “A Tale of Two Sisters: Microfinance Institutions and PAYGo Solar;” by Waldron, Sotiriou, Winiecki; published by CGAP
By Daniel Waldron, Alexander Sotiriou and Jacob Winiecki; published by CGAP (the Consultative Group to Assist the Poor); November 2019; 24 pages; available at https://www.cgap.org/sites/default/files/publications/2019_11_Focus_Note_Paygo_Two_Sisters_2.pdf
In Sub-Saharan Africa, the popularity of acquiring access to solar products in pay-as-you-go (PAYGo) formats is growing. This report assesses options available to microfinance institutions (MFIs) to engage with this market, which is largely dominated by new financial technology (fintech) companies. Devices that use PAYGo technology can be enabled and disabled remotely based on the payments their users make to the financiers of the devices.
The report primarily draws on
SPECIAL REPORT: “Trend Toward Rigor,” Microfinance Barometer, Financial Inclusion Compass Offer Views of the Past, Future at European Microfinance Week
At 
this week’s session titled “Looking Back / Looking Ahead” at European Microfinance Week, the European Microfinance Platform (e-MFP) officially launched the second Financial Inclusion Compass, a survey indicating the top trends in financial inclusion are: (1) digital transformation (institutional-side); (2) client protection; (3) digital innovation (client-side); (4) regulatory environments; and (5) social performance / impact measurement. Meanwhile, the document identifies the following as top “areas of focus:” (1) agri-finance; (2) climate change; (3) finance for small and medium-sized enterprises (SMEs); (4) finance for displaced populations; and (5) finance for youth.
Sam Mendelson of e-MFP notes that financial services providers (FSPs) responding to the Compass are more interested in