SKS Microfinance sells 6.8% stake to RBS at $10.8M

Microfinance focus,September 27, 2012:

Royal Bank of Scotland has purchased 6.8 per cent stake in SKS Microfinance, India’s former largest microfinance firm for Rs 58.57 crore ($10.8 million) through open market transaction on Tuesday. The SKS scrip went up by 4.97 per cent to close at Rs 122.4 a share on the Bombay Stock Exchange. RBS entity The Royal Bank of Scotland NV bought the SKS shares at Rs 117.15/share. The shares were acquired from Deutsche Securities Mauritius Ltd. apart from Deutsche Securities, CLSA Mauritius had acquired 9.15 percent stake in the QIP in July, 2012. SKS had mopped up Rs.230 crore through the Rs.165 crore QIP issue which opened on July 12 and closed on July 17 this year.As per June 30, Private equity firm Westbridge Capital, Sequoia Capital, Venture Capitalist Vinod Khosla, Sandstone Investment and Kismet Microfinance hold over 5% stake in SKS Microfinance.

SKS Microfinance which operates across 18 states, despite its initial success was embroiled in regulatory norms in Andhra Pradesh, the main stay of SKS Microfinance’s business. The slow decline of the Microfinance company began after Andhra Pradesh passed MFI Act in 2010, with a view to rein in MFI lending to poor borrowers following allegations of harrassment. At this juncture, founder of SKS Microfinance Vikram Akula quit and thus began SKS Microfinance’s decline from being the top Microfinance provider in India.

IMF’s survey Reveals India slow in financial inclusion

Microfinance Focus, September 25, 2012

The International Monetary Fund (IMF) results of its third annual Financial Access Survey (FAS) through the online FAS, which is the sole global supply-side source of comparable geographic and demographic data on access to and usage of basic consumer financial services by households and enterprises across the world, sees India far behind in the Financial inclusion indicators survey. The FAS is also the only source of data covering all five categories of the Basic Set of Financial Inclusion Indicators endorsed by the G-20 Leaders at the Los Cabos Summit in June 2012. The survey reveals that India is behind in a number of factors which includes in areas like the number of commercial bank branches per 1 lakh adults, loan accounts with commercial banks per 1000 adults, ATMs per 1lakh adults and Deposit accounts in commercial banks per 100 adults among others. India fares behind countries like Brazil, Russia, Indonesia among others.

The 2012 FAS round was conducted in collaboration with the Access to Finance Advisory Services of the International Finance Corporation (IFC) and the Consultative Group to Assist the Poor (CGAP). The Netherlands’ Ministry of Foreign Affairs and the Australian Agency for International Development provided financial support. The 2012 survey was enhanced to include time series on basic consumer financial access indicators covering credit unions, financial cooperatives and microfinance institutions, and to separately identify small and medium enterprises (SMEs), households, life insurance and non-life insurance. The 2012 round has a response rate of over 93 percent with 182 reporting jurisdictions, of which 27 are first-time reporters. This represents a 35 percent increase in country coverage relative to the 2011 round, which covered 135 reporting jurisdictions.

What is Needed Now Are Social Innovations that Deeply Empower Citizens

 

It was about 15 years ago that Robert L. Schwartz stepped to the podium to introduce Muhammad Yunus before a speech at the State of the World Forum.  I had heard Prof. Yunus introduced many times before, but never like this.  Schwartz, who had a distinguished career as a journalist and publishing executive including a stint as an editor at Time magazine, had also founded the Tarrytown Conference Center in New York.  In his introduction Schwartz outlined seven physical innovations and inventions that allowed for the development of the modern city.  He cited steel frame construction and the elevator which enabled the building of skyscrapers and spoke about other innovations like the subway.Then he said that what the world needs now, more than ever, are not so much the technological innovations, but social innovations like Muhammad Yunus has created with the Grameen Bank.

The Center for Citizen Empowerment and Transformation (CCET) This same contrast, the distinction between technological and social innovation, is at the heart of my latest initiative, the Center for Citizen Empowerment and Transformation (CCET).  After founding RESULTS, the citizen lobby on ending global poverty 32 years ago, and then founding the Microcredit Summit Campaign 17 years ago, I began looking at what my next focus would be.  I asked myself this question, “Of all that you have done over the last four decades, what lights you up the most but is least implemented in the world?” The answer was clear.  It was the early work with RESULTS to empower citizens in having breakthroughs with their elected officials and the media that inspired me the most and is still so desperately missing in the world.  What kind of breakthroughs am I talking about?  It was volunteers in RESULTS who persuaded editorial writers from 28 U.S. cities to join a conference call with Muhammad Yunus in 1987, 19 years before he received the Nobel Peace Prize.  One could say that conference call technology was a physical innovation, but the training and coaching that enabled volunteers to get dozens of editorial writers on the phone with Prof. Yunus was a social innovation and breakthrough of a wholly different order.  The technological innovations are important but they can languish until there is an effective mobilization.  For example, Edward Jenner’s smallpox vaccine was developed in 1796 but smallpox was not eradicated until 181 years later when the World Health Organization mobilized an effective global eradication program.

My aim with the Center for Citizen Empowerment and Transformation is to help non-governmental organizations (NGOs) find and train that small percentage of their members who want to go far beyond mouse-click advocacy in order to create champions in Congress and the media for their cause.  But what I mostly encounter are organizations enamored by the latest technological innovations: Facebook, Twitter, e-mails, on-line petitions, and text messages, but that are mistrustful of or uneasy about a focus on personal empowerment and transformation, uncomfortable with the social innovations.  Advances like Twitter and on-line petitions are widely misnamed “social media” but in fact they can help people avoid the deepest interpersonal social interactions on which true change so often depends.  I may be alone when I say this, but I agree with Schwartz, it is the truly social innovations that are most needed today.  Let me explain what I mean.
An inventor can develop a breakthrough in solar technology, but if our governments continue to deny or downplay the role greenhouse gasses play in climate change, we are doomed.  A researcher can discover a vaccine that will prevent an intractable disease, but if our governments can’t find the political will to make its dissemination a priority and if nations and communities can’t build the social structure and outreach necessary to ensure its use, then the innovation will lie dormant.  If the ten nations of the world that spend the most on defense can allocate over $1 trillion a year combined and there is little or no outcry for a change in priorities then how will we ever be good stewards of this planet?

As with any innovation, especially social innovations, there are the early adopters and there are those who sit on the sidelines waiting to see if it works.  Up until now, my only experience with citizen empowerment and transformation strategies that CCET is working to promulgate has been with RESULTS some 30 years ago and with Citizens Climate Lobby (CCL) over the last five years.  In both cases the work was with start-ups.  Now I am committed to bringing these innovations to established organizations.  How did the work with CCL begin? In 2007 businessman and RESULTS volunteer Marshall Saunders came to me for assistance.  Years earlier Saunders had been inspired by Grameen Bank and had started his own microcredit program in Mexico, Grameen del la Frontera.  Years later he saw the Al Gore documentary “An Inconvenient Truth” three times over a 10-day period.  When he learned that much of the work of microcredit programs in Bangladesh could be wiped out if millions of people were under water as a result of climate change, he went to Nashville, Tennessee, to be trained by Gore to lead the slide show.

Saunders returned to his home in San Diego, California, and led the presentation 43 times.  Early on he realized that the slide show was almost exclusively focused on the problem of climate change and included very little on what people could do about it.  He also knew that participants could not change enough light bulbs or buy enough Priuses to make up for what the government was or wasn’t doing.  Just as RESULTS worked to create the political will to end poverty, he knew that there had to be a major effort to create the political will to ensure a stable climate. Saunders approached a number of large environmental organizations and asked them to start a small program that would train a portion of their members to go far beyond mouse-click advocacy and become deep advocates on this issue.  They all said no. That was when Saunders asked me to coach him on starting Citizens Climate Lobby (CCL).  When he called there were no volunteers, no groups—not even a serious mailing list.  What he did have was his experience with RESULTS, his commitment to do something significant about climate policy, and a radical honesty about what he saw was needed in the world.
Futurist and inventor R. Buckminster Fuller once said: “The things to do are the things that need doing, that you see need to be done and that no one else seems to see needs to be done.”  Saunders saw something that needed to be done and either very few others saw it or, if they did, few had any hope in finding an effective way to address it.What is critical to this equation is not just the first purpose of RESULTS and CCL, creating the political will to end poverty or creating the political will to ensure a stable climate.  Perhaps even more important is the second purpose which is to empower individuals to have breakthroughs in expressing their personal and political power.  I believe that this second purpose is the essence of Schwartz’s call for social innovations, innovations that empower individuals in having breakthroughs in expressing their personal and, in the case of RESULTS and the CCL, their political power.  Isn’t that what Grameen Bank did?  It wasn’t just focused on giving loans and taking savings, it was focused on doing so in a way that unleashed the personal power of its members, unleashed the human spirit.  Here are some examples of Citizens Climate Lobby’s success during its young life:
CCL’s first chapters were started in September 2007.  By September 2012, CCL had grown to more than 60 chapters in the U.S. and Canada.   In 2011 CCL volunteers had 255 meetings with members of Congress or their staff.  During the first eight months of 2012 there had already been 452 such meetings.  In 2011 CCL volunteers had 181 letters to the editor published.  During the first eight months of 2012 there had already been 292 letters published. And what is the impact of these letters?  Just ask the legislators whose constituencies read them and begin to re-evaluate their representatives on the basis of what they have read. What kind of social innovation is required to awaken and empower volunteers to address the climate crisis in the political arena like this? One of the ingredients is a deep structure of support, an ongoing system of inspiring conference calls, coaching calls, and printed materials.  During 2012 I have met with dozens of non-governmental organization (NGO) leaders from groups both large and small.  I have met with the leaders of organizations that have millions of stakeholders and some that have thousands.  At a meeting with the CEO of one of the smaller organizations, a group with an annual budget that might not be much greater than US$1.5 million and a staff of no more than seven, the CEO explained that the organization did not have the budget or staff to take on a new program to empower their rather large grassroots base, large for the group’s staff size.  I found myself agreeing with the CEO during the meeting only to realize on the train ride home that the group’s budget was 100 times greater than that of RESULTS in its early years and that RESULTS had no full-time paid staff during its first four and a half years.  What RESULTS did have was an ethos and commitment to breakthroughs and to empowering extraordinary citizen action.

It is true that one cannot expect a large NGO to launch a major grassroots empowerment and transformation initiative on a shoestring budget.  Just because RESULTS was able to do it 30 years ago one can understand a large organization’s trepidation about going down this path.  Even so, I still wanted to better understand what commitments were required for success and began making a list.  There are 13 commitments listed below.  While the first six commitments deal more with the organizational infrastructure needed for success, the final seven offer a way for volunteers to embrace a series of personal breakthroughs.
A powerful structure of support This is the first commitment—the foundation.  A powerful structure of support is where this model differs from that of most other organizations.  If greatness is expected from volunteers, then a great structure of coaching and empowerment will be required from the organization and its staff, something much more than e-blasts and the occasional webinar.  Among the failures of grassroots empowerment is the myth that all volunteers need is a training session on meeting a member of Congress, a packet of materials, and a sense that their cause is just.  But this analysis ignores the heavy layer of cynicism and despair found in each of us and throughout society.  Each of the items mentioned in this list comes to life in a powerful structure of support which includes inspiring 1) monthly conference calls for group members, 2) weekly coaching calls for group leaders with brilliant coaching, 3) monthly action sheets, and 4) packets for editorial writers.  Without that, all of the commitments listed below become interesting ideas that are seldom implemented.

It must be emphasized that a structure of support can fall into the “going through the motions” category or, instead, consistently strive to be groundbreaking.  For example, one component of the monthly conference call is the guest speaker.  Even if the guest speaker is dazzling each month, if they are given 25 minutes but leave no time for questions, the volunteers will be proverbial “bumps on a log” and not as profoundly engaged as they would with a 10 minute talk followed by 15 minutes of questions and answers.  Another section of the monthly conference call is the shares from the grassroots.  But if all that the volunteer says is, “We had a great meeting with our member of Congress and can’t wait to do it again,” and they leave out the fact that it took 11 phone calls to get the appointment and their knees were knocking before the meeting took place, it won’t be as useful for the others listening in.  Another section of the monthly conference call is practicing through a role play or some other form of training.  If a volunteer tries the role play and does a terrible job, but the staff can say no more than, “Thank you for volunteering,” then we have missed an opportunity for real growth and are left with a moribund structure of support. But with a profound structure of support people are empowered to live their lives aligned with these words from George Bernard Shaw’s Man and Superman: This is the true joy in life, the being used for a purpose recognized by yourself as a mighty one, the being a force of nature, instead of a selfish, feverish little clod of ailments and grievances complaining that the world will not devote itself to making you happy. I am of the opinion that my life belongs to the whole community, and it is my privilege to do for it whatever I can. I want to be thoroughly used up when I die, for the harder I work, the more I live. I rejoice in life for its own sake. Life is no brief candle to me, it is a sort of splendid torch which I’ve got a hold of for the moment, and I want to make it burn as brightly as possible before handing it on to future generations.

Inspiration and idealism Being at peace with and confident in one’s idealism and vision and one’s commitment to inspiring others is critical.  This idealism includes holding ourselves to our fullest potential and our governments to their greatest ideals.  If government is broken, we are part of that brokenness and must heal ourselves first.  In working with grassroots advocates one can often hear a staff member say, “People are too busy to get involved.”  People are too busy for gestures, for going through the motions, but there are some who are not too busy to make a real difference.  One’s idealism and inspiration should not be surrendered to reason or to the petty pace of everyday life. The dictionary defines “inspire” as to fill with an animating, quickening, or exalting influence; to influence or impel.  The purpose of deep advocacy is to influence or impel, to change hearts and minds.  That cannot be done with facts and figures alone.  The urgency of the need for change must also be conveyed with inspiration.  When a monthly conference call or weekly group leader call agenda is being created, it must be filled not only with accurate information but also with moments that truly inspire and move the volunteers and staff.
Selecting the right staff Another critical ingredient is selecting the right staff.  One must select a staff that is entrepreneurial, unstoppable, and inspiring or committed to learning to be more inspiring.  Building a unit that truly delivers citizen empowerment and transformation requires the commitment of a successful startup.  No matter how good the coaching, if the staff is not entrepreneurial and unstoppable and is not committed to being inspiring, the effort will not succeed.  There must be a perceived pain that this program will relieve and a true sense of calling that goes far beyond the effort put into a typical 9-5 job.  There must be an attitude of “we will get this done, no matter what.”  The staff must own the vision completely as any great entrepreneur would do and be persistent in the face of opposition.

Focused, inspiring agenda Another piece of the organizational DNA and a clear failure of deep grassroots empowerment is the lack of legislative focus and the mistaken belief that if there is one major issue that is returned to throughout the year, the volunteers will become bored.  That is only true if the grassroots are given a simple request to make over and over on the same issue.  But if the groups are not just trying to get a co-sponsor on a bill but are instead working to really create champions in Congress, the media, and among community leaders, to take a little known issue and make it a political imperative, then boredom will not be a problem.  Developing a legislative agenda that is inspiring and focused allows volunteers to drill down deep on an issue rather than flit from issue to issue and allows volunteers to be moved by their own growth as community leaders.Practice and coaching One of the great challenges to the future of our planet is our short attention span.  But when one has a 20-30 minute meeting with a member of Congress, editorial writer or other community leader, what had been a superficial understanding can now travel much deeper.  But this is only possible if the volunteer has practiced and prepared and has something profound to offer.  Practice builds confidence and develops one’s leadership.  We shy away from arranging a meeting with a Member of Congress, writing a letter to the editor or calling into a talk show because we think we don’t know what to say.   Only real practice can change that.  The organization must be committed to ensuring the volunteers have ongoing opportunities for real practice in order to become spokespersons themselves.  This call for practice includes an organizational commitment to improvement, coaching, and being coached. 
Integrity Volunteers give a very precious commodity: their time.  There must be a deep commitment as an organization and as individual staff members to keeping one’s word, being someone who can be counted on.  If there is a conference call, be on time and deliver a quality agenda.  If there is an action sheet, have it arrive on time and be both accurate and inspiring.  One could say that global poverty and a deteriorating environment are the result of a lack of integrity on a global scale.  They cannot be solved by individuals and organizations that have questionable integrity.  These next commitments are a promise to the volunteers, a stand for a program that delivers excellence.  While they must be encouraged by the staff, their achievement are more in the hands of the volunteers themselves.
Empowering breakthroughs For a citizen to go from not knowing the name of their member of Congress to having a deep, trusted relationship with them requires a series of breakthroughs—it requires moving out of their comfort zone.  That is essentially the definition of a breakthrough, seeing something that seems difficult or impossible, having some discomfort in taking it on, and then, with coaching and support, going through that comfort zone to experience the joy and accomplishment on the other side. These breakthroughs can happen with a member of Congress, with an editorial writer, with other leaders in the community, and with oneself.  Empowering others in this way and providing opportunities for them to express their greatness is one of the gifts of deep advocacy.  Enrolling others Engaging other community members in being empowered volunteers is part of the structure of support.  If one invites a friend to a meeting there is always the fear that they will say no or that they will come and see this as a useless activity.  When volunteers become senior to that fear, when the commitment to the purpose and vision is greater than the fear of rejection, then big things can happen.Building deep relationships When an op-ed is selected for publication it has less to do with the quality of the op-ed and more to do with the relationship one has developed with the op-ed editor.  Of course timing and quality are important, but it is more valuable to have 10 people who have great, trusted relationships with op-ed editors pitch a good op-ed than to send a great op-ed to 10 editors with whom there is no relationship.  So the commitment is not so much to having an editorial writer or member of Congress say yes to every request, but to building a deep, trusting relationship.  Hearing “no” from a member of Congress early on should be seen as just one step along the path to building a great relationship over time.  Here is how Elli Sparks, a volunteer leader with Citizens Climate Lobby, described her search for a model for building deep relationships:….[O]ur director Mark Reynolds likes to say, “We’re betting the farm on relationships.”  Then he tells us that we need to build relationships with members of Congress and editorial writers.  Most of us CCL volunteers have never done that before!! What in the world does a relationship with a member of Congress look like? How do we connect with an editorial page editor? Some of us have found models for those relationships in other parts of our lives. Gary in Boston uses the model of a work relationship….

My relationship model is different. I adore romantic relationships, so I use romance as my model.  That first meeting with the editorial writer… it’s like a blind date, only you’ve decided beforehand you are going to marry this fellow. You are going to be sweet and interesting, but not too intense…. if it doesn’t work out with the editor, you are going to marry one of his friends at the newspaper – the business editor, environmental writer, or city editor. Someone at this paper will find you interesting and compelling – it’s just a matter being persistent until you find the right connection. ….I see the relationship with a member of Congress as an arranged marriage. If you live in her district, the member’s aide has to meet with you. That’s what our Congressman’s legislative director (LD) told us in January. Since then, we’ve met four times with the LD. We schedule 45 minute meetings with him. He keeps us for well over an hour. He doesn’t want us to leave!  Why? Because a good arranged marriage starts out cold and heats up over time. That’s different than a love match, which starts out hot and slowly cools down. …I see the editorial page writer as a painter. His canvas is the editorial pages. His pallet is filled with letters to the editor, op-eds, and editorials. I am his muse, model, and assistant….I want him to fill his canvas with colors that I like, so I’ll have my group send 3 – 5 letters to the editor whenever the opportunity arises. The more colors I put on his pallet, the better chance of having him pick one or two of my favorite colors.

Last summer, he printed three climate denier letters from international denier groups. At first, the denier letters felt like a blow to the gut. Then, I dug deep for the love language… My editor was proud of his work in standing up for the climate. Those denier letters were in response to his own articles encouraging conservatives to help conserve the climate. He had been courageous in writing those editorials. He was getting national attention because of them. He was not backing down. I thought he might enjoy a pat on the back from across the nation. I called Gary in Boston, a scientist in NY, and our CCL director [in California]. All three sent letters. All three letters were printed! I guess I was right… my editorial page editor likes national attention!!
….During our conference I met with 20 congressional offices. I met with many folks whose view of the world was very different than mine. Going into their offices was hard. I had to let go of a lot of emotional baggage. I could no longer judge them or hold hostility in my heart towards them. I had to let go of my fear of climate change and my fear that they wouldn’t listen to me. I had to center myself in love.  Releasing fear and centering in love… this is sacred and profound work….Being vulnerable Showing an emotional video or reading convincingly an excerpt from an evocative article to a member of Congress is more important than just sharing information.  The goal is to tap into their humanity and create a deeply memorable moment.  The goal is to have the meeting be as close to an actual field visit as possible.   But people shy away from being vulnerable, especially with those in positions of power.  Bringing an emotionally moving video or reading to a member of Congress can make a volunteer feel especially vulnerable.  Instead we are more likely to hide behind a presentation of facts and figures. However, a willingness to be vulnerable is essential to having breakthroughs, engaging others, building powerful relationships, and, ultimately, success. Partnership not partisanship The most profound breakthroughs and transformations come when those whom we perceive as against us or our cause begin to see the truth and importance of our issue and embrace it as their own.  But that can only happen through partnership, not partisanship.  We must see the humanity and essential goodness in each person, especially those who are seen to oppose us.  In 1987 the RESULTS group in Atlanta adapted the following prayer for their own member of Congress, a prayer that had originally been written by Newton Hightower of Houston for his member of Congress.  They would read this prayer at the beginning of each of their meetings and think, a touch cynically, “Yeah, right” when they first read it.  But they read it as a way of opening their hearts to the humanity of their member of Congress who had voted against famine relief for Ethiopia in 1985.

Thank you God for Pat Swindall.  We know that he is a good man who wants to do right in the world.  We know that he struggles with the same problems we do: closing our hearts to those who don’t agree with us.  There are no thoughts or feelings that he has had that we haven’t had and vice versa.  We pray for all of us to have compassion for people in our country and far away, for rich and poor.  We pray that Pat and we will be less frightened of each other.  We pray our focus will be more to love and appreciate him and less to change him.  Help us to remember that sharing love with the world is the highest contribution we can make and will lead to children being fed and the planet surviving.  Forgive our righteousness and anger.  Open our hearts and minds to find the next expression of love for Pat that he can receive. When we are faced with someone who appears to oppose us or our cause the normal tendency is to give up.  If we don’t give up we are likely to be defensive, retaliatory, or argumentative, but this seldom works.  The commitment being discussed here has nothing to do with being weak or without resolve.  Rather it is a clear understanding that change is not likely to occur without communication.   No matter how backward one’s member of Congress’s views might seem, one must decide whether one wishes to be right about their backwardness or, instead, engage him or her in a deep conversation for change.

Being unreasonable Time magazine once stated: “Visionaries are possessed creatures, men and women in the thrall of belief so powerful that that they ignore all else—even reason—to ensure that reality catches up with their dreams.  But always behind the action is an idea, a passionate sense of what is eternal in human nature and also what is coming but as yet unseen, over the horizon.”  Taking a stand for a stable climate, the end of poverty, or for achieving world peace is seen by most others as naïve and futile.  It is the visionaries whose actions get us closer to those goals and whose actions are buttressed by “an idea and a passionate sense of what is eternal in human nature and also what is coming but as yet unseen, over the horizon.”   A program for citizen empowerment and transformation is an incubator and nurturing place for visionaries. 
Humor, joy and celebration The issues of global poverty and climate change often involve addressing great personal or global pain or sounding an alarm for action on a dire and critical issue.  We must not let the heaviness inherent in the task overwhelm us.  Instead we must find the joy in the work so it does not become drudgery.  That joy can be found in the act of making a difference, having personal breakthroughs, assisting others in making a difference, finding partners who share your commitment, and being inspired by living a committed life.  Approaching the work with lightness and cheerfulness and celebrating the victories along the way, both large and small, will help bring joy and sustain the volunteers and staff for the long run.

What are people capable of?

The preceding list of commitments is a tall order, but what is at stake is the quality of life on this planet and perhaps life itself.  There are two competing visions of people and their ability to change the world for the better.  One vision sees individuals as weak, inadequate, inconsequential, and just not up to the job.  The other sees people as being strong, committed, brave, visionary, audacious, and heroic.  Honestly, when it comes to ending global poverty or ensuring a stable climate or sustainable peace, how do you see people?

How do you see yourself? 
I believe Apollo Astronaut Rusty Schweickart was correct when he said, “We aren’t passengers on Spaceship Earth, we’re the crew.  We aren’t residents on this planet, we’re citizens.  The difference in both cases is responsibility.” 
If our species is to have any hope of living up to that responsibility, of succeeding and thriving, we must see people as strong, brave, visionary, audacious, and heroic.  And if we embrace that vision we must return to Robert Schwartz’s assertion that now, more than ever, we need social innovations, innovations that empower individuals to have breakthroughs in expressing their personal and political power for the good of humanity.  But we know that these breakthroughs do not occur spontaneously or without being nurtured.  If we are to help people achieve them, we must create the profound structures of inspiration, challenge and support that enable individuals to do the work of healing creation.

Sam Daley-Harris is the founder of RESULTS (1980), the Microcredit Summit Campaign (1995), and the Center for Citizen Empowerment and Transformation (2012). sam@empoweringcitizens365.org

(This article was adapted from a piece that originally appeared in the September 2012 issue of the Journal of Social Business.)

SOCAP12 to be held next month in San Francisco

Microfinance Focus, Sept 24, 2012

Social Capital Markets Conference 2012 (SOCAP12), THE convener of the social entrepreneur and impact investing community in the U.S., will host its annual gathering October 1-4 in San Francisco. The sector was recently estimated at $650 billion in marketplace potential,  SOCAP, now in its 5th year, will focus heavily on the many aspects of impact investing, convening more than 1,000 key investors, entrepreneurs, foundations and business leaders who are doing business within the sector.

Recent data demonstrates a $650 billion market potential for impact investing per
the “Gateways to Impact Report”, a collaboration of leading entities in the sector.The Monitor Group’s “From Blueprint to Scale” report, also produced by leading voices in the space, recognized that in order to make this potential new force for business mature and sustainable, impact philanthropy is needed to scale. Nearly $4.4 billion was invested in 2,200 impact investing deals in 2011, almost exactly twice as many as in 2010, according to “Accelerating Impact”, a new report by the Rockefeller Foundation.

This year representatives from 45 countries will attend and the program highlights include, 
talks by Jeff Raikes, CEO of Bill & Melinda Gates Foundation, Judith Rodin, President,
The Rockefeller Foundation, Matt Bannick, Managing Partner, Omidyar Network, Majora Carter and Paul Polak, Founder, International Development Enterprises (IDE).

Microfinance Conference in Iraq to discuss inclusive financial services

Microfinance focus,September 21, 2012
Iraq is all set to discuss inclusive financial services at the Inclusive Financial Services Stakeholders Conference at Erbil on October 23 and 24, 2012. This year’s theme Iraqi Microfinance – The Path to Economic and Social Advancement”, will see 12 Iraqi microfinance institutions (MFIs) participate along with Iraqi policy makers, donors, commercial bankers, regional network, international resource organizations and representatives from the U.S.Agency for International Development.Since the inception of the concept of Microfinance in Iraq in 2003, the country’s microfinance industry has made 403,765 microloans with a total disbursed value of over $959.3 million as of June 30, 2012.
The conference will focus on discussions related to opportunities for inclusive financial
services, current Iraqi Microfinance legal and regulatory environment and will also review and plan for growth to the next level of microfinance in the next decade and beyond. Furthermore the conference seeks to reflect on key components such as good governance, social performance, diversified funding sources etc. including vulnerable groups such as youth and women by developing new, demand-driven products that serve their needs.

Microfinance Conference in Iraq to discuss inclusive financial services

Microfinance focus,September 21, 2012
Iraq is all set to discuss inclusive financial services at the Inclusive Financial Services Stakeholders Conference at Erbil on October 23 and 24, 2012. This year’s theme Iraqi Microfinance – The Path to Economic and Social Advancement”, will see 12 Iraqi microfinance institutions (MFIs) participate along with Iraqi policy makers, donors, commercial bankers, regional network, international resource organizations and representatives from the U.S. Agency for International Development.Since the inception of the concept of Microfinance in Iraq in 2003, the country’s microfinance industry has made 403,765 microloans with a total disbursed value of over $959.3 million as of June 30, 2012.

The conference will focus on discussions related to opportunities for inclusive financial
services, current Iraqi Microfinance legal and regulatory environment and will also review and plan for growth to the next level of microfinance in the next decade and beyond. Furthermore the conference seeks to reflect on key components such as good governance, social performance, diversified funding sources etc. including vulnerable groups such as youth and women by developing new, demand-driven products that serve their needs.

Alliance for Financial Inclusion meet in South Africa

 

Microfinance focus,September 21, 2012
26th and 28th Sept will see policymakers and regulators from over 80 countries, descend upon Capetown in South Africa  to discuss issues related to financial access for poor households and small enterprises at the Alliance for Financial Inclusion (AFI) meet. Last year’s AFI global forum saw over 25 members take a pledge towards financial inclusion.
The discussions at the forum will be centered around lessons learnt from the 2011 Maya Declaration including discussions on practical policy solutions and will also work on broader impacts of financial inclusion on the real economy and its role in poverty alleviation, boosting employment, redressing inequality, and promoting long term economic growth.
This year’s Forum will work at setting up a network as a unique peer-learning and progress review platform for financial inclusion driven by members. Additionally it will also highlight its sustainable long-term path with developing and emerging country ownership and leadership at the core.

Ujjivan raises equity of Rs.47.28 Crores

Microfinance focus,September 17, 2012:
Bangalore based microfinance company, Ujjivan Financial Services,has raised Rs.45 Crores (USD 9 million) equity capital from IFC, a member of the World Bank Group while Foreign Institutional Investor FMO (Netherlands Development Finance Company) invested an additional Rs.2.28 Crores (USD 0.45 million) to its earlier investment of Rs.32.6 Crores (USD 6.52 million).

Early 2012, Ujjivan managed to raise Rs.127.9 Crores (USD 25.5 million) in its fifth round first tranche of equity funding. The current investment will make the total equity investment of Rs.175.18 Crores (USD 35.03 million) .With more than a million clients spread across 20 states, the company functions in 48 districts across India. This investment can provide the company with enough leverage for further business growth and help sustain its capital adequacy requirements for the next three to four years. “Since the microfinance crisis, IFC has been focused on investment and advisory services targeted at helping the microfinance sector expand its outreach to low-income households in India,” said Thomas Davenport, Director for IFC, South Asia. “We will work with Ujjivan, an institution that promotes responsible financing, for a more balanced growth of microfinance in India.”

Microfinance Company Arohan merges with Intellecash

 

Microfinance Focus, September 14, 2012: Intellecash Microfinance Network Company (P) Limited, a subsidiary of the Intellecap Group of companies, announced its merger with Arohan Financial Services, a Kolkata-based Microfinance Institution. Intellecash has acquired a majority stake in Arohan Financial Services. This series of back-to-back transactions in IntelleCash and Arohan totaling to over INR 52 Cr was facilitated by Aavishkaar Goodwell II. Manoj Nambiar, CEO, Intellecash, joining its Board and taking over as the Managing Director.

Existing Arohan investors India Financial Inclusion Fund (IFIF) and Michael & Susan Dell Foundation participated with additional investment in Arohan, endorsing the belief in IntelleCash and Arohan teams’ abilities, and also in the value of consolidation in the industry.

This consolidation expected to enhance the equity base of Arohan and allow it to expand its retail presence across Bihar, Assam, West Bengal, and other low income states.

Established in 2006, Arohan has a customer base of over 100,000 poor households. In 2010, Arohan was adjudged the ‘MFI of the Year’ and the ‘Most Transparent MFI’ in different prestigious industry events. It is a perfect launch pad to achieve our aim of reaching a portfolio size of INR 100Cr by Mar 2013 and working towards crossing INR 1000 Crore  the next 5 years.”, Said Shubhankar Sengupta, CEO of Arohan.

 

 

SONATA Microfinance Raises Equity of Rs.35 Crore

 

Microfinance Focus, September, 13, 2012: SONATA Finance Pvt. Ltd., an Allahabad based NBFC Microfinance Institution, announced that it has closed its Series D equity raise of Rs.35 crore. The leading investor in this series was Creation Investments, an alternative investment management company in Chicago. Other investors in this round include The Michael and Susan Dell Foundation and Swaminathan Aiyar, a renowned economist.

SONATA currently operates in four states in India: Uttar Pradesh, Madhya Pradesh, Haryana and Uttaranchal. Despite operating in one of the most underserved and poorest regions in India, SONATA enjoys client confidence and profitable operations with a portfolio of approximately Rs.110 crore.

Anup Kumar Singh, Promoter and Managing Director of SONATA, said, “We welcome the support of like-minded stakeholders like Creation Investments which has endorsed our efforts to ensure quality services to the BoP population.”

This is Creation Investments’ first MFI investment in India. Ken Vander Weele, Chief Investment Officer at Creation Investments said, “We are excited to partner with SONATA for it’s growth. We are long-term partners who will provide them with all the necessary support to achieve their mission.”

With offices in Austin, TX and New Delhi, as well as Cape Town, South Africa, The Michael and Susan Dell Foundation funds programs such as SONATA that improve the economic stability of families living in poverty. SONATA impressed investors at the Dell Family Foundation with their performance during the Indian microfinance crisis.

Representatives at both Creation Investments and the Dell Foundation voiced their support of Indian microfinance. Geeta Goel, Director of Microfinance at The Michael and Susan Dell Foundation said, “Despite the crisis, we have remained committed to the sector and continue to support investees that have retained their focus on being client centric, transparent and financially viable.”

“This transaction validates the fact that there is strong interest in [the] Indian microfinance sector,” said Abhijit Ray, Co-founder and Director of Unitus Capital, the sole financial advisor and arranger to SONATA and its shareholders for the transaction.