Microfinance, one of the fastest growing sectors in the Kingdom of Cambodia, is all set to weather the current economic crisis with strong growth, according to industry experts. According to a press release on The Phnom Penh Post, although the growth of the microfinance sector this year would be at a slower pace than previous years, the industry is still stable and expected to grow at double-digit rates. Commenting on the slight slowdown but stable situation of Cambodia’s microfinance sector this year, Paul Luchtenburg, the Chief Executive Officer of the Cambodian microfinance institution (MFI) AMK microfinance said that although the decrease in financing and foreign capital have made Cambodian MFIs more conservative in their lending practices this year, the sector overall was still heading towards positive, albeit slightly slower growth.
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MICROCAPITAL STORY: International Symposium on Microfinance as a Tool for Peacebuilding Discusses Rebuilding the Social and Economic Fabric in Post-Conflict Areas of Colombia through Microcredit
The International Symposium on Microfinance as a Tool for Peacebuilding discussed how microcredit could be used to rebuild the economy and promote growth in post-conflict areas of Colombia. According to this press release on the Symbiotics website, the symposium which was held in the city of Cali in Colombia was attended by nearly 2000 participants. Symbiotics is a microfinance information, consulting and services organization based in Switzerland. The symposium was sponsored by the Alvaralice Foundation, a Colombian non-profit established in 2003 and dedicated to promoting peace and economic growth in the country.
MICROCAPITAL STORY: State Bank of Pakistan Launches Three Microfinance Development Funds With Proceeds from the UK Government Financial Inclusion Programme and the Asian Development Bank
The State Bank of Pakistan (SBP) has launched three microfinance initiatives: the Microfinance Credit Guarantee Facility, the Institutional Strengthening Fund, and Improving Access to Finance Services Fund. The initiatives are part of the GBP 50 million, or USD 75 million, Financial Inclusion Programme (FIP), a joint venture between SPB and the UK Department for International Development.
MICROCAPITAL STORY: Rural Impulse Fund of Belgium’s Incofin Invests in Asomi, an Indian MFI
Incofin, a Belgian private social investment company that invests in MFIs, has signed an agreement with Asomi, an MFI operating in Assam, India. Incofin’s Rural Impulse Fund, which makes debt and equity investments in rural MFIs, acquired 25% of the capital of Asomi for an undisclosed amount. The investment represents Incofin’s first entry into India.
MICROCAPITAL STORY: Spanish Agency for International Cooperation (AECID) Provides US$ 8.6 million in Funding for Jordan’s Microfund for Women
The Spanish government provided funds of Euro 6 million (USD 8.6 million) to the Microfund for Women, a Jordanian microfinance institution. Under an agreement signed on December 15, 2008 at the Ministry of Planning and International Cooperation, the Spanish Agency for International Cooperation (AECID) provided the Microfund for Women with the funds, providing additional support to the Jordanian microfinance sector, which accounts for approximately 20 percent of the of its gross domestic product (GDP). This is not the first time that the Spanish government has funded Jordanian microfinance in 2008. In February AECID provided the National Microfinance Bank (NMB) with Euro 5 million (USD 7.2 million) and the Micro Credit Company (Tamweelcom) with Euro 4 million (USD 5.74 million).
MICROCAPITAL STORY: Grameen-Jameel and Blue Orchard’s Arab Microfinance Investment Symposium Concludes that Microfinance in Arab World Totals US $5.5 billion
The Arab microfinance industry, with an estimated total market of USD 5.5 billion in the Arab world, remains a largely untapped area, it was reported in multiple Arab-based newspapers following the 2008 Arab Microfinance Investment Symposium held on November 30, 2008. The Symposium had a total of fifteen speakers, including speakers from Grameen-Jameel, the International Finance Corporation (IFC), Blue Orchard Finance, and a variety of other organizations involved in microfinance, although the majority of the press focused on the presentation by Heather Henyon, the General Manager of Grameen-Jameel. The microfinance institutions (MFIs) on the MFI Panel included Jordan’s Tamweelcom, Egypt’s DBACD, Tunisia’s enda inter-arabe, and Pakistan’s Kashf Foundation. Additionally, more than 150 delegates from the UAE, Egypt, Lebanon, Jordan, Palestine, Morocco, Tunisia and Pakistan discussed the potential of the microfinance industry in the Arab region. The 2008 Arab Microfinance Investment Symposium was co-hosted by Grameen-Jameel, a social-oriented business based in Dubai, and BlueOrchard, a microfinance investment manager located in Geneva, Switzerland and was covered in this MicroCapital Event.
NEWS WIRE: Philippines: Ayala Corp., BPI, Globe Set Up Philippine’s First Microfinance Bank to Help Small Business
Source: Business Mirror.
NEWS WIRE: France: A New Peer-to-peer Website Dedicated to Microfinance
Source: Babyloan and ABC MicroFinance.
MICROCAPITAL STORY: World Bank Group Publishes Online Database of Global Remittance Prices to Improve Price Transparency in Remittance Provision Markets
The World Bank Group recently published a publicly-available online database of global remittance prices in 120 “country corridors” (i.e. two countries between which remittances are transferred) with the aim of informing low-income migrant workers and households in emerging economies. While global leaders have talked about reducing remittance-sending costs for some time, little has been done on the issue in the way of substantial quantitative data until now, says remittances specialist Dilip Ratha.
MICROCAPITAL STORY: BlueOrchard Microfinance Invests $5.3m and Purchases Equity Stake in Indian Microfinance Institution Asmitha Microfin Limited
On September 30, BlueOrchard Private Equity, the private equity arm of BlueOrchard Microfinance Investment Managers, invested INR 250 million (USD 5.3 million) and purchased a minority stake in Asmitha Microfin Limited, the fourth largest non-banking financial company in India. This will be BlueOrchard’s first equity investment deal with an Indian microfinance institution (MFI). With the new investment, Asmitha intends to expand its capital base and to bolster its borrowing capacity in order to shore up its microfinance lending operations. The new partnership is a strategic development for BlueOrchard, which hopes to consolidate its presence in India in the coming years.
MICROFINANCE EVENT: Microfinance Investor Conference, December 11-12, 2008 in Beijing, China
Source: Symbiotics
Original Post available here.
Event site available here.
Beijing, China, October 19, 2008 – This conference shall bring together Chinese MFI and international investors, as well as other stakeholders.
The microfinance landscape in China is developing rapidly and various types of new institutions have entered the market in the past few years. As new institutions are being set up and older ones continue to grow, there is an increasing demand for outside funding.
Organized by the joint People’s Bank of China (PBC)-GTZ project on Microfinance and Rural Financial Sector Reform, this conference shall bring together Chinese MFI (mainly commercially oriented types such as Micro-Credit Companies and Village Banks), international investors, and other stakeholders.
The conference will provide an overview over the Chinese microfinance landscape. As speakers, co-sponsors can further make themselves visible to a wide range of MFI and government decision makers.
All participants have a unique chance to get to know each other and build their networks in our “Market Place”: International Investors will be given space to set up information booths and present themselves to the participating MFI.
Please visit the following homepage www.gtz-china.org/finance/pbc-gtz-2008. Details on registration will be available very soon.
Read more about the project on Microfinance and Rural Financial Sector Reform here.
NEWS WIRE: Pakistan: DFID Assistance Likely this Month, Focus on Microfinance
Source: Symbiotics.
PRESS RELEASE: First Direct Investment of BlueOrchard Private Equity in India’s Microfinance Goes to Asmitha Microfin Limited
Source: Symbiotics
MICROFINANCE EVENT: Global Summit on Microfinance as an Alternate Asset Class for Institutional Investors
GLOBAL SUMMIT ON MICROFINANCE AS AN ALTERNATIVE ASSET CLASS FOR INSTITUTIONAL INVESTORS
OCTOBER 29-30, MILLENIUM KNIGHTSBRIDGE HOTEL, LONDON, ENGLAND
The conference will focus on the opportunities and challenges for microfinance investments as the industry becomes larger and converges with mainstream financial institutions. Specific topics will include the current state of the microfinance sector, the risks and rewards for institutional investors involved in microfinance, an evaluation of rating metrics currently employed, lessons and opportunities taken from other asset classes, good governance in microfinance institutions (MFIs), and developing a universal framework for evaluating social returns. A complete agenda can be found of the conference website.
MICROCAPITAL STORY: In Bangladesh, Rising Food Prices Affecting Loan Repayments in Microfinance Programs
Originally reported by Bangladesh’s The Financial Express, it appears that an increasing number of MFI clients in Bangladesh are not utilizing disbursed microloans to support planned microenterprises, instead using loans to cover the rising cost of food. A product of the 2008 world food shortage, in many countries rapid increases in food prices have not been accompanied by a comparable increase in wages, causing MFI clients to fill their budgetary gaps with microloan funds.
MICROCAPITAL STORY: European Fund for Southeast Europe (EFSE) Loans $15m to Bosnian-Herzegovinian MFI Partner Microcredit Foundation
The European Fund for Southeast Europe (EFSE), an investment firm that seeks returns from a portfolio of social enterprises, has made a USD 15 million loan to Bosnian-Herzegovinian nonprofit microlender Partner Microcredit Foundation. The loan will be used by Partner to expand its on-lending activities to small and micro enterprises. The loan’s term and rate were not disclosed.
MICROCAPITAL STORY: Sierra Leone’s Njala University College to Add Microfinance Course to its Offerings
Njala University College in Sierra Leone plans to incorporate a microfinance course into its current course offerings. Jointly developed by Njala University and NaCSA (National Commission for Social Action), the course will form part of the university’s Social Science Curriculum, leading to the award of a Bachelor of Science Degree. Course concepts will be intended for those who wish to become practitioners of microfinance. Subject matter will include principles of finance, lending methodology, and methods of controlling loan delinquency.
MICROCAPITAL STORY: Consolidation of Indian Microfinance Institutions Expected
Experts following the growth of microfinance in India say that the sector is headed toward a phase of consolidation, and expect to witness a series of mergers and acquisitions. Originally reported by The Wall Street Journal’s Livemint, it is expected that consolidation will occur amongst smaller MFIs in order to compete with India’s microlending giants. Currently, the top 25 microlenders in the space account for 75 percent of total microlending, creating a strong imperative for small MFIs to join forces. It is expected that MFIs serving less than 5000 clients will need to engage in consolidation.