Microfinance News

Expert Meeting on Social Performance of Microfinance Institutions

Microfinance Focus — Fri, 03 Sep 2010 05:37:09 +0000

Microfinance Focus, Sep 3, 2010: Netherland based microfinance investment manager Triple Jump in collaboration with Oikocredit and CGAP will be organizing an Expert Meeting for Social Investors on Tools to Assess Environmental, Social and Governance (ESG) Performance of Microfinance Institutions on 23 September 2010.

The meeting will bring together social investors to discuss the tools available and what they assess. The meeting is also the kick-off of the Social Performance Task Force Investor Working Group on Tool Sharing and Harmonization, coordinated by Triple Jump.

The Social Performance Task Force consists of over 800 leaders from all over the world. Created in March 2005, the Task Force has been charged with clearly defining social performance and addressing questions about measuring and managing social performance.

Currently investors are using scoring card, questionnaire or other tool to assess the Environmental, Social and Governance (ESG) Performance of Microfinance Institutions. The workshop will look at what investors can learn from each other’s experiences in applying investor and industry tools, while exploring whether investors can work towards a common core set of questions that address their ESG concerns and how this can be aligned with monitoring and reporting requirements.Related Posts:

Share/Save

BMZ contributes EUR 8m to Green for Growth Fund

Microfinance Focus — Fri, 03 Sep 2010 05:31:49 +0000

Microfinance Focus, Sep 3, 2010: Increasing the fund’s size to EUR 128 million, the German Federal Ministry for Economic Cooperation and Development (BMZ) has made a EUR 8 million contribution to the Green for Growth Fund, Southeast Europe (GGF) to finance energy efficiency and small-scale renewable energy projects implemented by businesses and households within the region.

BMZ’s contribution is supported by EUR 1 million in grants to GGF’s Technical Assistance Facility. The funds will be used to support the GGF’s partner institutions in developing financing instruments for energy efficiency and renewable energy projects, to help design and implement such projects, as well as to increase the awareness about their benefits.

“The GGF will be able to leverage BMZ’s contribution by up to eight times, generating over EUR 60 million in investments in the field of energy efficiency and renewable energy”, said Monika Beck, Chairwoman of the Board of Directors of the GGF. “This will have a significant impact in reducing energy consumption and CO2 emissions in GGF’s target region. The Fund is very pleased to have BMZ as a partner in this effort.”

Initiated by the European Investment Bank and KfW (The German Development Bank), GGF is dedicated to enhance energy efficiency and foster renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo, Montenegro, Serbia and Turkey.

The Fund also makes direct investments in specialist energy service companies (ESCOs), energy efficiency service and supply companies and renewable energy projects and public entities. The activities of GGF are supported by a Technical Assistance Facility.

The Fund is registered under Luxembourg law as a Variable Capital Investment Company (SICAV). GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in consortium with the investment advisor Finance in Motion GmbH, Frankfurt/Main, Germany, and technical advisor MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.Related Posts:

Share/Save

Bill & Melinda Gates Foundation gives $5.6m grant to Water For People

Microfinance Focus — Fri, 03 Sep 2010 05:27:21 +0000

Microfinance Focus, Sep 3, 2010: Water For People, a non-profit international development organization, has received a $5.6 million grant from the Bill & Melinda Gates Foundation to support their Sanitation as a Business program.

The grant represents an investment over four years in Water For People’s Sanitation as a Business work, testing possible sustainable sanitation services in Africa, Asia, and Latin America. The program will combine profit incentives for small local companies and income generation programs for poor households and schools, demonstrating a shift from unsustainable, subsidy-based sanitation programs toward sustainable, profitable sanitation services.

Water For People first began experimenting with Sanitation as a Business principles in Malawi, Africa in 2008. Since then, sanitation entrepreneurs have developed ongoing maintenance relationships with households to service over 1,000 latrines.Related Posts:

Share/Save

EBRD lends 2.9 billion roubles loan for Russian SMEs

Microfinance Focus — Thu, 02 Sep 2010 10:29:52 +0000

Microfinance Focus, Sep 2, 2010: The European Bank for Reconstruction and Development – EBRD will be lending up to 2.9 billion roubles (76 million) to Credit Europe Bank for meeting the growing demand for local currency loans from small and medium-sized enterprises (SME’s) of Russia, says a release.

It will be an unsecured five-year senior loan to the Credit Europe Bank which is majority-owned by the Netherlands-registered Credit Europe Group N.V. and part of one of Turkey’s conglomerate, the Fiba Group. The bank is focussed on the retail sector, mid-sized corporations and SME’s.

“This is part of a shift in the EBRD’s loan portfolio towards rouble-denominated lending to support Russian small businesses. We are pleased to provide this funding through a well-managed bank with high standards of corporate governance, a good reputation and which is prepared to respond proactively to demand from SMEs in the regions of Russia”, said the EBRD’s Managing Director for Financial Institutions, Nick Tesseyman.Related Posts:

Share/Save

Microinsurance essential for Financial Inclusion – Pranab Mukherjee

Microfinance Focus — Thu, 02 Sep 2010 06:25:25 +0000

Microfinance Focus, Sep 2, 2010: Addressing a gathering at the Global Insurance Summit organized by ASSOCHAM in Mumbai on Wednesday, Union Finance Minister, Pranab Mukherjee stressed on the need of popularizing Microinsurance for achieving financial inclusion in the country.

Identifying financial inclusion as one of the biggest challenges for the Indian insurance market, he said, “One of the important challenges before the insurance industry today is to generate the required level of awareness about the benefits of insurance to our people particularly living in semi-urban and rural areas”.

Acknowledging the fact that insurance companies are now increasingly tapping the semi-urban and rural areas to spread the message of protection of life and property through insurance cover, Mr. Mukherjee said, “One of the main objectives of promoting financial inclusion packages is to economically empower those sections of society which are otherwise denied access to financial services, by providing banking and credit services thereby focusing on bridging the rural credit gap.”

He further stressed that lack of protective elements may not serve the objective of promoting financial inclusion packages as the targeted section may fall back into the clutches of poverty in the event of unforeseen contingencies. Hence, to provide a hedge against these unforeseen risks, popularization of micro insurance is one of the essential ingredients of financial inclusion package.

Drawing attention to the miniscule population of India which is covered under health insurance, the Finance Minister asked the insurers to ensure further penetration of the health insurance in this country with a simultaneous consideration that the premiums are affordable for the insured.

“There is immense need of disaster management in controlling catastrophic risk in India. The insurance industry should prepare to deal with any kind of catastrophic losses. The insurance companies should concentrate on exploring the world reinsurance market, so that the impact of heavy losses can be mitigated”, he added.Related Posts:

Share/Save

IFC, Daiwa announce second bond to support microfinance in developing countries

Microfinance Focus — Thu, 02 Sep 2010 06:19:51 +0000

Microfinance Focus, Sep 2, 2010: World Bank’s International Finance Corporation (IFC) and Daiwa Securities Group have announced their plan to issue a bond later this month to expand access to finance for poor and low-income entrepreneurs in developing countries. This will be IFC’s second microfinance bond. The first issue in November 2009 raised about 25 billion Japanese yen.

The bond is expected to raise up to $323 million. IFC will invest an amount at least equal to the bond proceeds to support microfinance activities. The notes will be issued under IFC’s Global Medium-Term Note Program.

The issue will be arranged by Daiwa Securities Capital Markets Co. Ltd., the wholesale securities firm under Daiwa Securities Group, and distributed by Daiwa Securities Co. Ltd. to Japanese retail and institutional investors. Daiwa Securities Group Inc., headquartered in Tokyo, Japan, is the holding company of group companies that provide a broad range of investment and financial services.Related Posts:

Share/Save

Microfinance Insti VEF appoints Dianne Calvi as President and CEO

Microfinance Focus — Thu, 02 Sep 2010 06:15:23 +0000

Microfinance Focus, Sep 2, 2010: Village Enterprise Fund (VEF) has appointed Ms. Dianne Calvi as its new President and Chief Executive Officer. Headquartered in California, VEF works in Kenya and Uganda targeting start-up businesses in rural areas.

The organization has helped entrepreneurs start 21,000 micro-businesses since 1987. It has a three-pronged economic development model (grants, training, and mentoring) for microenterprise development field.

Prior to joining VEF, Dianne served for five years as president of the Mountain View, CA-based Bring Me A Book foundation, an early literacy nonprofit serving low income children and families. Dianne also served on the board of directors of Shelter Network for six years.Related Posts:

Share/Save

IFC annual investments surpass $2 billion in Africa

Microfinance Focus — Wed, 01 Sep 2010 09:12:51 +0000

Microfinance Focus, Sep 1, 2010: International Finance Corporation (IFC), the financial arm of World Bank increased its investments in Sub-Saharan Africa to $2.4 billion during the fiscal year 2010 from $1.8 billion a year earlier. It was the first time IFC’s annual investments surpassed $2.0 billion in the region. IFC mobilized an additional $1.1 billion from other investors and approved 40 new Advisory Services projects during FY10.

Thierry Tanoh, IFC Vice President for Latin America and the Caribbean, Sub-Saharan Africa, and Western Europe, said, “Private businesses that are delivering services and creating employment and other opportunities are changing lives for the better in Africa. Through another record year, IFC is demonstrating the enormous private investment potential in Africa and the continent’s readiness to attract more.”

In support of increased development impact in the world’s poorest countries, IFC dedicated nearly $400 million in financing in Africa to projects that strengthen micro-, small and medium enterprises. Following the global financial crisis, IFC provided significant support for trade finance to domestic and international banks. More than $68 million went toward lessening the effects of climate change on the continent.

IFC managed 168 regional Advisory Services projects in Africa, supporting increased access to finance, sustainable business practices, and improved investment climates. Seventy percent of the $248 million in Advisory Services projects under management were dedicated to the region’s poorest countries, also known as IDA countries.

IFC Asset Management Company, during its first year of operation, supported $140 million in Sub-Sahara African investments in manufacturing and financial services, investing alongside IFC. IFC AMC, a wholly-owned subsidiary of IFC, invests third-party capital, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns and positive development impact in countries where it invests.Related Posts:

Share/Save

Good Capital lends $200,000 to social enterprise Root Capital

Microfinance Focus — Wed, 01 Sep 2010 09:11:24 +0000

Microfinance Focus, Sep 1, 2010: The San Francisco-based manager of the Social Enterprise Expansion Fund, Good Capital LLC lent a $200,000 subordinated loan to Root Capital a non-profit social enterprise to build Root Capital’s brand and increase its capacity for additional growth on Tuesday according to a company’s statement.

Root Capital provides financial services to small and growing businesses. Since its launch in 1999, it has provided more than $200 million in loans to 282 small and growing businesses, representing 400,000 individuals in 30 countries throughout Latin America and Sub-Saharan Africa.

Good Capital manages the Social Enterprise Expansion Fund. The fund provides growth capital and expertise to expansion stage social enterprises. “We have found a non-profit partner willing and able to take on our kind of growth capital to accelerate their social impact and to participate in a deep engagement that aligns our resources and talents with their needs and strategic goals,” said Kevin Jones, Partner and Co-founder of Good Capital.

“We are excited about our partnership with Good Capital and are looking forward to working with them to strengthen our brand and build the critical marketing and communication tools needed to grow our impact,” said William Foote, CEO and Founder of Root Capital. “This partnership will help us to strategically identify both the financial and human capital resources needed for us to reach our long-term goals.”Related Posts:

Share/Save

Tilman Ehrbeck Named as New CEO of CGAP

Microfinance Focus — Wed, 01 Sep 2010 07:20:26 +0000

Microfinance Focus, Sep 1, 2010: Consultative Group to Assist the Poor (CGAP) has appointed Tilman Ehrbeck as its new Chief Executive Officer on Tuesday in Washington DC. Ehrbeck will succeed Elizabeth Littlefield, who was recently appointed President and CEO of OPIC (Overseas Private Investment Corporation).

CGAP is an independent policy and research center and is supported by over 30 development agencies and private foundations. Housed at the World Bank, CGAP provides market intelligence, promotes standards, develops innovative solutions, and offers advisory services to governments, microfinance providers, donors, and investors.

Ehrbeck, a Partner at McKinsey & Company has nearly 20 years of experience in banking, management, and public sector work. Over the past 10 years, he has advised microfinance networks, private foundations, governments, and commercial entities on strategies to improve financial access, among other speaking and writing roles.Related Posts:

Share/Save