by the MicroCapital Team -

SPECIAL REPORT: Inclusivity in Capital Markets Demands Sustainability Reporting

Sustainability reporting entails assessing, dis­closing and managing an organization’s environmental, social and governance (ESG) impacts. This prac­tice communi­cates to investors, custo­mers, employ­ees and regulators that the organization is com­mit­ted to sustainability. The dis­closure element, in particular, con­veys values, strategies, risks, oppor­tunities, account­ability and trans­par­ency.

The significance of sustain­ability re­port­ing within capital markets is increasing steadily, as more investors

by Rohit Dayanand -

MICROFINANCE PAPER WRAP-UP: “Driving Digital Financial Services in Africa Through Merchant Acceptance of Digital Payments,” published by Alliance for Financial Inclusion (AFI)

This paper examines the growth and challenges of digital payment adoption by retailers in Africa, including “contactless payment (QR codes, tap to pay) [and] buy-now-pay-later” services. The authors note four main prerequisites for merchant adoption:

by the MicroCapital Team -

SPECIAL REPORT: Agents for Impact Sustainability Alignment Rating (AFISAR©): Applying a Gender-smart Approach in the Microfinance Sector

UN Sustainable Development Goal (SDG) 5, “Achieve Gender Equality and Empower All Women and Girls,” is not only a standalone goal but is inextricably linked to the other SDGs. Though moving toward gender equality has long been associated with achieving social or political goals, its proven economic benefits remain under-appreciated. Accord­ing to the World Bank’s 2021 Global Findex Database, more than 1 billion women worldwide still lack access to the financial system. In fact, wo­men make up the largest unbanked population in the world, with more than 70 percent of woman-owned small and medium-sized enterprises estimated to have inadequate or no access to financial services. The financial gap just for women-owned formal small businesses is estimated to be USD 300 billion.

In the absence of financial tools, women face difficulty generating income, boosting savings, growing businesses and improving the living conditions of their families. If the am­bitious targets set within the SDGs are to be achieved, then a concerted effort is required to

by Saulius Ramanauskas -

MICROFINANCE PAPER WRAP-UP: “Leveraging Digital ID and e-KYC for the Financial Inclusion of Forcibly Displaced Persons: Risks and Opportunities;” Published by Alliance for Financial Inclusion

The authors of this paper discuss the use of electronic know-your-customer (e-KYC) procedures and digital forms of identification (ID) to support financial inclusion for forcibly displaced persons (FDPs) in Eswatini, Mauritania and Rwanda.

In Eswatini, refugees and asylum-seekers may apply for refugee ID cards and non-Swazi ID cards, respectively. After acquiring IDs, individuals may access

by Michelle Fleming -

MICROFINANCE PAPER WRAP UP: “Reserve Bank of Fiji’s Experience With Financial Inclusion and Climate Change;” by Klaus Prochaska, Vereimi Levula, Andrew Levula; published by Alliance for Financial Inclusion (AFI)

This is a summary of a case study written by Klaus Prochaska, Vereimi Levula and Andrew Levula; published by the Alliance For Financial Inclusion; 2018; 16 pages; available at: https://www.afi-global.org/publications/2899/Reserve-Bank-of-Fiji-s-Experience-with-Financial-Inclusion-and-Climate-Change

Following Tropical Cyclone Winston, which resulted in a nearly one-third reduction in Fiji’s GDP for 2016, government actors including the Reserve Bank of Fiji (RBF) resolved to work to “make the country more resilient to extreme climate events, rising sea levels and changing weather patterns.” RBF had already decreed a