News, SDC BSM Finance, Intercooperation

All news items older than about three months are stored here in chronological order. Please be aware that some of the links may no longer work!

Refinancing of Rural and Agricultural Financial Institutions and Agricultural Production Co-operatives [2009-04-06]

Date: Friday, 15th May 2009, Location: Bern, Switzerland

The next Savings & Credit Forum organised by Intercooperation on behalf of the Swiss Agency for Development and Cooperation (SDC) is dedicated to the topic of "Refinancing rural/agricultural financial institutions and agricultural production co-operatives". We will discuss both good practices in refinancing such institutions from the investor/donor perspective and the re-financing challenges posed by the current financial and food crises from the perspectives of rural/agricultural institutions and their investors. Case studies from Bulgaria, Togo and Nicaragua will illustrate how rural/agricultural financial institutions are facing the current challenges to their continued growth.

Find detailed information here: http://www.intercooperation.ch/finance/services/se-ex-fosacr.php

Microfinance, subsidies and dynamic incentives [2008-04-21]

Florida Atlantic University, 2007

This paper studies the interaction between subsidised microfinance lending and private, profit oriented lending. The authors build a two period model of a credit market with a monopolistic moneylender and a subsidized microfinance institution (MFI). They apply their model to explain why offering subsidized loans to agents who are poor due to previous project failure does not necessarily lead to moral hazard. Agents' incentives to work hard and save will not always be distorted. The authors conclude that using microfinance to allocate credit subsidies to the poor can work in tandem with a monopolistic moneylender, with each institution maximizing its respective objective function. The condition for this is that the level of the subsidy remains in a certain range.

Remittances from Germany and their Routes to Migrants' Origin Countries - A study on five selected countries [2008-04-21]

GTZ, 2007

Despite the growing volume of remittances, the market for money transfers is extremely intransparent and in some cases the cost for cash transfer services extremely high. The result is that transfers are frequently made through informal channels. To make better use of the developmental potential of remittances and increasingly steer remittances into formal channels will require increased cooperation with the financial sector. The financial sector itself will benefit as formally transferred remittances help strengthen inclusive financial systems providing services to population groups that have been neglected so far. The publication describes the Aunties’ Programme and its achievements in detail and concludes that the Aunties’ approach is transferable to other countries with traditions and contemporary situations not unlike those found in Cameroon.

Read on: http://www2.gtz.de/dokumente/bib/07-1374.pdf

Remittances during crises: implications for humanitarian response [2008-04-21]

HPG Briefing paper 26, May 2007

The neglect of remittances in humanitarian planning reflects a broader tendency to undervalue the capacities of crisis-affected populations, when in fact people’s own efforts are often crucial to their survival. Helping in the restoration of remittance flows may be a quick and effective way of supporting livelihoods recovery. The tendency of recipients to share remittances with their extended families and even neighbours, and the fact that they are usually spent on local goods and services means that the impact of remittances extends to the rest of the community, not just the recipient household. Remittances are an important way of reducing risk from local disasters, by diversifying incomes, providing an insurance mechanism that can, to a limited extent, cover losses, and enabling households to invest in risk reduction.

Sustainability of Self-Help Groups in India: Two Analyses [2008-04-21]

CGAP Occasional Paper No. 12, August 2007

The 2.2 million Self Help Groups (SHGs) that currently exist provide a large and growing market for Indian banks. International experience has shown that unless core external support functions are paid by revenue generated within the system itself, community-level units will degrade over time and eventually unravel. Making sure that such support is in place often will require increases in the interest or fees charged to SHGs. But sustainable funding of such support is very much in the interests of the members—and essential to the permanence of the SHG system. In India, therefore, it may not be too late, even though at present commercial banks and other promoters do not necessarily appreciate the necessity and the full cost of long-term support to maintain their SHG portfolio.

Remittances, Migration and Social Development: A Conceptual Review of Literature [2008-04-21]

United Nations Research Institute for Social Development (UNRISD), October 2007

This paper reviews the empirical literature on the relationship between remittances and various dimensions of social development in the developing world within a broader conceptual framework of migration and development theory. Migration and remittances have the potential to improve well-being, stimulate economic growth and reduce poverty. However, if states fail to implement general social and economic reform, migration and remittances are unlikely to contribute to nationwide sustainable development. Therefore, policies aimed at increasing people’s welfare, creating functioning markets, improving social security and public services such as health and education are also likely to enhance the contribution that migration and remittances can make to social development.

Order the paper on: http://www.unrisd.org/80256B3C005BCCF9/search/8B7D005E37FFC77EC12573A600439846?OpenDocument&cntxt=5ADF7&cookielang=en#top

Low-income households' access to financial services - International Experience, Measures for Improvement and the Future [2008-04-21]

EARD Special Studies, produced by the Asian Development Bank, October 2007

In most developing economies, a majority of households especially in low-income categories do not have access to financial services. If they do, they are mostly underserved both in terms of quantity and quality of products and services. The global experience suggests that there are many ways to improve access to finance for low-income households and provides useful insights for policy makers and practitioners who are committed to address the issue. While many stakeholders have to participate in this effort, cross-country experience over time indicates that the governments have a major and multiple roles to play. The government role, however, must be focused on promoting rather than replacing the important role that private sector financial institutions could play in this task.

Proceedings of the European Microfinance Week 2007 - "European Responses To Global Microfinance Challenges" [2008-04-21]

27th-29th November 2007, Luxembourg, "Abbaye de Neumünster"

Some of the main issues that emerged were that microfinance is still not reaching those who are most in need. Outreach problems persist despite the availability of investment. The need for good governance was emphasised by all sectors and there is an urgent need to provide this technical know-how to MFIs. Additionally, regulatory frameworks are needed for microfinance as a whole and also for individual products and services. New technologies are making some financial operations, such as remittance transfers, cheaper and more efficient and help increasing the outreach of microfinance. However, the changing nature of microfinance arising from the upsurge of interest from commercial investors has led to concern over the possibility that actors will drift away from fundamental social objectives.

Finance for all? Policies and pitfalls in expanding access [2008-04-21]

A World Bank Policy Research Paper; International Bank for Reconstruction and Development, 2008

The barriers to financial services for poor clients are either physical (geographical or social exclusion) or an issue of eligibility (procedures, minimum deposit requirements, lack of collateral, transaction costs). The authors argue that subsidies would be needed to provide certain financial services to the very poor. However, they conclude that governments should not intervene through taxes and subsidies, notably in the microcredit sector as not everyone will realistically qualify for credit but rather need access to reliable and inexpensive saving and payment products. The state should therefore help overcoming coordination failures, first-mover disincentives and obstacles to risk sharing in this domain.

Read the paper on: http://www.eldis.org/cf/rdr/?doc=35534

Regulating transformational branchless banking: mobile phones and other technology to increase access to finance [2008-04-21]

CGAP Focus Note n°43, January 2008

This paper presents a short list of key topics and recommendations for a proportionate regulatory policy in the sector of information and communication technologies (ICT) and non-bank retail channels, as a promising way of proving access to finance for many people. It exposes some preconditions for a steady and safe grow of the branch, as well as necessary regulatory measures for ensuring the sustainability of the services provided by branchless banking. The paper concludes recommending that policy should urgently consider gaps in regulation and use proportionality as a guiding principle. Coordination between authorities and other interested players has to be facilitated.

Giving credit to the microlenders - Formal microlending, credit constraints and adverse selection: a case study of shrimp farmers in Bangladesh [2008-04-21]

International Institute for Environment and Development (IIED), Discussion Paper 08-02, January 2008

This paper examines the effectiveness of formal microcredit schemes as compared to the traditional informal credit sources in a rural shrimp farming district of Bangladesh, by studying the technical and allocative efficiencies of the two groups of borrowers. The findings suggest that farmers using both types of microcredit have difficulty accessing credit, often over-utilising labour in order to reduce the need for inputs that require cash at the beginning of the season, creating inefficiencies in production. However, the informal lenders, with their closer ties to individual farmers, were more successful in identifying those small-holders most likely to make the best use of the borrowed funds. Thus, although formal microcredit schemes do not impose the high administrative fees of traditional formal lending, they do not necessarily solve the problem of how to select successful borrowers.

What Can Microfinance Contribute to Agriculture in Developing Countries? [2008-04-21]

Proceedings from the International Conference, Paris, 4-6 December 2007; FARM, February 2008

The conference stated that microfinance can play an important role in agricultural finance. Understanding how to best meet the financial needs of rural households and finding ways to mitigate the risks associated with them are added challenges that further hinder the expansion of financial services for agriculture. The need to rethink synergies and coordinate different stakeholders is relevant at the levels of MFIs governance and strategic alliances. Generally speaking, capacity building of the various actors—elected officials, managers and extension officers—is a critical success factor for professional agricultural organisation and MFI partnerships. This observation incited the development of an operational guide to help strengthen such partnerships, which will be validated though a virtual conference (in French) from 21 April to 7th Mai: see under conference section or http://www.fondation-farm.org/forum-OPA-IF/

Read the proceedings on: http://www.fondation-farm.org/IMG/pdf/Farm_microfinance_conf_eng.pdf?PHPSESSID=e89959233022a44c2025639537b2a03f

Rural Finance for Small Farmers: An Integrated Approach [2008-03-14]

Women’s World Banking Focus Note, 2007

This paper provides an introduction to the key elements of success in the expansion of microlending to rural areas. After identifying the common risks in agricultural production, it describes the steps an institution must take to expand responsively and sustainably into rural markets, e.g. in term of branch locations, client profiles, financial products and lending methodologies amongst others. It also summarizes what an institution must commit to in order to ensure successful rural expansion. Each of the key steps of the expansion process are illustrated by concrete examples from a case study in the Dominican Republic.

Read the paper on: http://www.womensworldbanking.org/files/pub_lang_Rural%20Finance%20Focus%20Note.pdf

Foreign Capital Investment in Microfinance - Balancing Social and Financial Returns [2008-03-14]

CGAP Focus Note no. 44, February 2008

Microfinance is experiencing an investment boom as more and more private investors are getting involved. At the moment a few mainstream investors with no particular social focus also are beginning to invest in MFIs. This raises the question whether a purely commercial, returnmaximizing investors will allow microfinance to uphold its social mission and scale-up its outreach to low-income people The paper describes the new landscape of cross-border investments. It presents data on the performance of microfinance investment vehicles (MIVs). It provides an analysis of the latest developments and issues confronting both the microfinance debt and equity markets. Finally, it explores how the influx of private-sector investment might influence the social focus of microfinance development.

Read the paper on: http://www.cgap.org/portal/binary/com.epicentric.contentmanagement.servlet.ContentDeliveryServlet/Documents/FocusNote_44.pdf

Displaced distortions: Financial market failures and seemingly inefficient resource allocation in low-income rural communities [2008-01-10]

Christopher B. Barrett, Department of Applied Economics and Management, Cornell University, Ithaca, New York, USA, supported by USAID

Abstract: Poor households in rural areas of the developing world commonly lack access to (formal or informal) credit or insurance. These financing constraints naturally spill over into other behaviours and (asset, factor and product) markets as households rationally exploit other market and non-market resource allocation mechanisms to resolve, at least partly, their financing problems. These displaced distortions of financing constraints commonly manifest themselves in allocative inefficiency that may lead researchers and policymakers to mistakenly conclude that poor households routinely make serious allocation errors and to direct policy interventions towards the symptoms manifest in other markets rather than towards the root financial markets failures cause.

Read the paper on: http://www.cfnpp.cornell.edu/images/wp223.pdf

Report “Providing Financial Services in Rural Areas: A Fresh Look at Financial Cooperatives” [2008-01-10]

Authors: Agriculture and Rural Development Department of the World Bank

This report is mainly based on the findings of studies realised in four country case studies (Burkina Faso, Kenya, Brazil and Sri Lanka). The results show that financial cooperatives are significant providers of financial services in rural areas. In the successful cases, this success is based on a tried and tested institutional and business model: democratic, bottom-up, autonomous, self-financing, and savings-based. The report concludes that there is enormous growth potential for financial cooperatives in rural areas in many countries. However, expanding outreach spells risk, and sectors have to build their growth strategies on solid governance structures and a sound financial situation. This report should be very useful for the staff and management of international development agencies, policy makers and regulators in developing countries, and the financial cooperative sector and other rural finance practitioners both in developing countries and worldwide.

Study on “Financing mechanisms for post conflict reconstruction” [2008-01-10]

Authors: Nicole Ball, Center for International Policy, Washington DC for the Conflict Research Unit of the Clingendael Institute

This strategy paper, requested by the Minister for Development Cooperation of the Netherlands, presents an overview of different mechanisms available for the financing of postconflict reconstruction. It examines the appropriateness of these mechanisms in the context of good donor practice in engaging with fragile states. It concludes by offering some suggestions on how bilateral donors can create conditions for successful in financing post-conflict reconstruction. For the Netherlands it should be seen as the first step in a process of determining which financing mechanism should be employed in post-conflict recovery efforts.

Available online on: http://www.clingendael.nl/publications/2007/20071000_cru_occ_ball.pdf

Policy challenges for microfinance design and practice in Nigeria [2007-11-01]

Produced by: African Institute for Applied Economics, Nigeria (2007)

This report summarises the findings from a forum held in Nigeria on policy challenges for microfinance design and practice in Nigeria. It argues that microfinance for Nigeria should include services for the poor enabling them to attain sustainable livelihoods and eventually exit from poverty. It identifies some problems and bottlenecks and outlines policy interventions

Available online at: http://www.aiae-nigeria.org/Publications/Policypaper7.pdf

Can money transfers work for microfinance institutions? A Technical Guide to Developing and Delivering Money Transfers . Draft for public review –Dec.2006 [2007-11-01]

Authors: J.,Glisovic-Mezieres; produced by Microfinance Gateway, CGAP (2007)

In this brief the author notes that money transfers is a rapidly growing area, creating business opportunities for microfinance institutions (MFIs). As a fee-based product, money transfers can generate revenues and bolster the bottom line. However, although the money transfers market offers attractive opportunities, the risks and challenges can be significant. The author concludes that as migration expands and financial sectors develop, the demand for money transfer products will continue to increase. Satisfying this demand will aid the MFI's bottom line and help serve low-income clients by creating the essential services they need.

Read more and find the link to the Technical Guide Draft: http://www.microfinancegateway.org/content/article/detail/39354

Making Remittances Work for Africa: a thematic article based on IMF Working Paper 38/2007 [2007-11-01]

If handled well, migrant transfers can reduce poverty and connect small savers to the formal financial sector, such is the conclusion of an article based on IMF Working Paper n° 38/2007 entitled \“Impact of Remittances on Poverty and Financial Development in Sub-Saharan Africa.\” The article gives an overview about remittances in Africa an in the world and analyses the impacts of the remittances on long-term growth potential and financial development in Sub-Saharan countries. It investigates ways how remittances could be used more effectively in term of business opportunities for institutions offering service transfer services or the use of these funds for long-term local economic development.

Read more and find the link to IMF Working Paper n° 38/2007on: http://www.imf.org/external/pubs/ft/fandd/2007/06/gupta.htm#author

CGAP Focus Note No 41: Beyond Good Intentions: Measuring the Social Performance of Microfinance Institutions [2007-09-28]

In comparison with the tried and true measures of financial performance, assessing the so-called social performance of microfinance institutions (MFIs) is a tricky business. This note points out that, for this very reason, many founders and financial institutions are seeking rigorous and transparent ways to determine whether microfinance is truly achieving social performance goals (such as improved nutrition, health, housing, and education). Yet, critics wonder if these will create more costly and inefficient hoops for MFIs to jump through and, indeed, whether establishing standardized measures of social performance is even possible.

More on: http://www.cgap.org/portal/binary/com.epicentric.contentmanagement.servlet.ContentDeliveryServlet/Documents/FocusNote_41.pdf

CGAP provides a Country-Level Savings Assessment Tool (Draft) [2007-09-28]

CGAP produced this Draft Country-Level Savings Assessment (CLSA) Tool to help guide analysts and researchers who wish to undertake CLSAs and to guide governments and donors who wish to commission CLSAs. The tool provides a systematic methodology for analyzing opportunities and constraints to savings mobilization at the country level.

Find the CLSA tool on: http://www.cgap.org/portal/binary/com.epicentric.contentmanagement.servlet.ContentDeliveryServlet/Documents/CLSA_Tool.pdf

Global conference on “Next Generation Access to Finance: Gaining Scale and Reducing Costs with Technology and Credit Scoring” [2007-09-28]

Took place September 17-19, 2007 in Washington, D.C.

Organized by the International Finance Corporation and CGAP, in collaboration with Visa International, the conference aimed at highlighting technologies used by pioneering organizations in the financial services industry, including microfinance organizations, to reduce costs and reach new customers. Over 300 delegates from more than 60 countries heard from industry leaders from around the world as they provided in-depth and critical analysis on technology use and credit reporting to increase access to finance. New technologies like mobile phone banking and other emerging applications are likely to revolutionize financial markets in rich and poor countries and enable the development of financial services reaching remote areas and poor people viably.

Read the Conference note on: http://technology.cgap.org/2007/09/19/that-was-a-great-conference-so-what/

The Development Impact of Small and Medium Enterprises: [2007-09-28]

Lessons Learned from SEAF Investments

It has been recognized that small and medium sized enterprises (SMEs) are a potential powerful tool for economic growth and poverty reduction, yet there have been few empirical studies exploring this theory. With support from Switzerland's SECO, the UK's DFID, USAID, and the Ford Foundation, the Small Enterprise Assistance Funds ("SEAF") published in 2004 a first development impact study in 2004, which examined in detail ten of SEAF's portfolio companies in Eastern Europe and Latin America - five in rural sectors and five in urban settings. The study showed that on average, every dollar invested in the companies generated an additional ten dollars in the local economy. It also demonstrated that SMEs tend to hire and train low-skilled workers and promote from within, demonstrating that SMEs generate jobs appropriate for the low-skilled poor and can be an effective tool for poverty alleviation. In the near future, SEAF will publish a report with an expanded pool of case studies and additional findings from the ongoing data collection from approximately 30 companies in eight countries.

Read more and find the study on: https://www.seafweb.org/impact.htm

Extraordinary The Savings & Credit Forum:The Progress out of Poverty Index presented by Mark Schreiner [2007-09-28]

Date: Friday afternoon, 19th of October 2007, 13:30-16:00 in Hotel Bern

Speaker: Mark Schreiner, Senior Scholar, Center for Social Development, Washington University and Director Microfinance Risk Management, Saint Louis. Mark Schreiner has developed and tested the Poverty Scorecard instrument (which can be used in areas other than microfinance, too) in several countries (Bangladesh, Bolivia, Haiti, India, Pakistan, Mali etc.) on behalf of CGAP and the Argidius and Ford Foundations. "The easy to use, objective poverty scorecards (accuracy matters, but "practicality" also matters - and probably matters more) can help programs target services, report on poverty rates, and track changes in poverty rates over time. Furthermore, the indicators and poverty likelihoods are closely related to the Millennium Development Goals".

More information under http://www.intercooperation.ch/finance/services/se-ex-fosacr.php

Grameen Foundation launches Village Phone Direct Assistance Centre [2007-06-28]

Grameen Foundation recently launched the Village Phone Direct Assistance Center to help MFIs independently work with local telecom operators to develop Village Direct Phone programs for their communities. Village Phone Direct is an innovative, microfranchise approach to village phone hat allows virtually any microfinance institution or other organization to directly and independently develop a Village Phone product for their clients. Village Phone Direct brings the benefits of telecommunications to local communities and micro entrepreneurs without the need for an institutional infrastructure to coordinate the operations in cooperation with an individual microfinance institution to serve small rural villages.

Read on http://www.villagephonedirect.org

New Publication: Managing Credit Risk in Rural Financial Institutions in Latin America [2007-06-28]

By Sergio Navajas, Alvaro Tarazona Soria, Carolina Trivelli, Mark Wenner

Adequately managing credit risk in financial institutions is critical for their survival and growth. In the case of rural lending in general and agricultural lending in particular, the issue of credit risk is of even greater concern because of the higher levels of perceived risks resulting from some of the characteristics of rural dwellers and the conditions that they find themselves. The purpose of this report is to review common credit risk management techniques used in a sample of Latin American financial institutions with agricultural portfolios, identify the factors that contribute to successful credit risk management as measured by several key financial performance indicators in order to assist donors, governments, and owners of financial institutions to promote and adopt the most efficient and robust techniques. The ultimate aim is to make financial markets more inclusive and sounder.

For more information and download of the report read on http://www.iadb.org/sds/mic/publication/publication_159_4645_e.htm

Micro Banking Bulletin No14 Spring 2007 [2007-06-05]

This new issue of the MBB has five feature articles focusing on microfinance and macro-issues, as well as a report on the securitization of the loan portfolio of BRAC (Bangladesh), and the latest release of MIX’s Trend Lines report. Feature articles include the importance role of microfinance to developing and serving the middle class in developing countries; on possible implications of global climate change for microfinance; on the necessity to consider the performance standard of efficiency as a measure of balance between achievements in social and financial performance goals; and on the key macro-environmental factors that foster microfinance. In keeping with the macro-issues theme, there is also a Bulletin Highlights article investigating the resilience of microfinance loan portfolios to national macroeconomic events, from a statistical perspective.

Read on: http://www.mixmbb.org/en/

New issues of ACCION International’s InSight [2007-06-05]

ACCION InSight No. 21: Getting to Scale in Housing Microfinance: A Study of ACCION Partners in Latin America. By Nino Mesarina and Christy Stickney

A vast unmet demand exists for housing finance for low-income populations in the developing world. Housing microfinance (HMF) has shown signs of its potential to reach scale and satisfy some of this demand. ACCION International and Habitat for Humanity International joined efforts to conduct a study covering ten of ACCION’s partners in Latin America, representing more than 90 percent of the ACCION Network’s housing portfolio. The objective of this research was to learn about the key success factors as well as challenges and barriers for reaching scale in housing.

Access both publications here: http://www.accion.org/insight/

New issues of ACCION International’s InSight [2007-06-05]

ACCION InSight No. 22: Microfinance Cracking the Capital Markets II. By Rekha Reddy

Investment in microfinance, particularly cross-border investment, is booming. Who is investing? What are the latest deals? What types of advances need to occur to build a healthy infrastructure for debt and equity investments into microfinance? How do we manage the risks investors face? These questions were discussed as part of the second Microfinance Cracking the Capital Markets conference, hosted by ACCION International and sponsored by Credit Suisse. The conference, which took place in New York on March 19-20, 2007, brought together more than 300 fund managers, emerging markets specialists and intermediaries to consider these questions. It highlighted the growth in microfinance investment, innovations in structured deals and ways in which microfinance institutions (MFIs) and investments need to develop to integrate more fully into the capital markets.

The CGAP Working Group on Microinsurance launches revised Microinsurance Focus Website [2007-06-05]

The CGAP Working Group on Microinsurance has finalised the revision of the Microinsurance Focus website, the resource centre for microinsurance on Microfinance Gateway. This resource centre promotes sound practices in insurance provision to low-income persons through the exchange of knowledge and experience. It attempts to address challenges and issues the provision of microinsuranc pose throughout the website and provides a broad range of information and resources including case studies and reports, documents and articles, tools and information on different service providers.

Read on http://microfinancegateway.org/resource_centers/insurance

Updated version of the Appraisal Guide for Microfinance Institutions by CGAP [2007-05-09]

The Consultative Group to Assist the Poor (CGAP) announces the release of a new Appraisal Guide for MFIs. This new Technical Guide includes sections on analyzing savings, poverty outreach, information systems, and risk management. In addition, the Guide includes new indicators and financial statement formats agreed amongst a range of microfinance stakeholders, and an accompanying CD-ROM offers a spreadsheet that can be used to generate summary tables for appraisal reports. The Appraisal Format consists of detailed instructions and Excel spreadsheets to guide an experienced microfinance analyst through a qualitative, institutional evaluation of a relatively mature MFI. The Appraisal Format evaluation process covers the core components of a final evaluation report. The executive summary has quantitative and qualitative reviews of key conclusions and recommendations. Individual sections are devoted to institutional factors, MFI services/clientele/market, strategic objectives, and financial performance, respectively. The handbook's annex provides additional information on how to calculate theoretical interest yields.

Read on http://www.cgap.org/portal/site/CGAP/menuitem.4c8b6bb5a212340167808010591010a0/

New Financial Services Training Resource Centre by MicrSave Kenya [2007-05-09]

The Financial Services Training Resource Centre (FSTRC) is an initiative of MicroSave, working in collaboration with several other microfinance focused organizations. The FSTRC is being re-launched and is packed full of useful information to help you pick, participate or prepare for the top training programmes globally. It is all about sharing resources and building capacity. Each month there are fresh "Interviews with Experts," articles on training and interesting resources like surveys and updates on financial service training.

Visit the new site at http://www.fstrc.org

Transversal Analysis of MFO Performance in Africa [2007-03-20]

Transversal Analysis of MFO Performance in Africa is the first ever transversal analysis of the performance evaluations undertaken by the MFI Forum members (it also includes evaluations of MFIs who are not Forum members so as to have access to a wider source of data). It allows for a comparative analysis to be made, according to time and space parameters, of the development of the African microfinance sector (identifying any market trends, strengths, weaknesses, establishing benchmarks etc...).

This publication can downloaded at: http://www.microfinancegateway.org/files/35865_file_35865.pdf

New thematic dossier on Savings in French on Lamicrofinance [2007-03-20]

The French language Microfinance Gateway has produced a new thematic dossier on savings. Based on the French language resources that already exist in this area, the main aims of this thematic dossier are to analyse the needs and motivations of the populations who are not well served in terms of the accumulation of savings and savings products, to highlight the need for programmes that facilitate the mobilization of savings in the framework of healthy and sustainable economic development, to identify the factors that are key to the success and long-term viability of savings mobilization plans and to draw up a list of resources that are available on-line and in French and of experiences that are currently underway, particularly in the French language microfinance world.
Please also have a look at other resources about savings on this website: www.intercooperation.ch/finance/themes/.

The dossier is structured around 7 main themes and may be consulted at: http://www.lamicrofinance.org/resource_centers/e_pargne

"Microfinance through the Next Decade: Visioning the Who, What, Where and How" by ACCION International. [2007-03-20]

The Publication written by E. Rhyne and M. Otero, 2006 sets out to analyse the major factors and challenges that will determine the future of the microfinance sector over the next 10 years. It identifies four main areas to be analysed, namely competition, technology, commercial access and the political and regulatory environment. The paper provides an overview of the current trends in the whole of the microfinance sector, whilst at the same time highlighting regional differences.

The paper may be ordered free of cost at: http://www.accion.org/pubs/micro_pubs_list.asp_Q_P_E_DVISEN

Study on the impact of migrant's remittances on the economy of Zimbabwe by Great Britain’s Economic and Social Research Council [2007-03-20]

The study called "Remittances, poverty reduction and the informalisation of Household Wellbeing in Zimbabwe" (S. Bracking, L. Sachikonye, 2006) not only highlights the migrants' low level of trust in the conventional remittance channels, but also the fact that a majority of the country's population is entirely dependent upon this source of income to satisfy their daily needs. Furthermore, the widespread presence of the informal economy, as well as the growing risk of the creation of disparities between the poor and the "less poor" households, are just a few of the many risks identified in the paper.

The paper may be consulted, in English, at: http://www.gprg.org/pubs/workingpapers/pdfs/gprg-wps-045.pdf

Responsibility placed second SICAV (Société d'investissement à capital variable) Microfinance Leaders investment fund on the market [2007-03-20]

Responsibility, Switzerland has recently placed a second responsAbility SICAV (investment company with variable capital) Microfinance Leaders investment fund on the market, reserved for institutional investors. The aim of this new finance instrument is to offer MFIs, in particular, financing for their debts in the form of five year loans or the opportunity to invest in the equity capital of an MFI in the short-term. These funds will also serve to provide financing instruments in local currency, as well as to introduce coverage instruments.

More information may be obtained by contacting Mr. Klaus Tischhauser at: mailto:klaus.tischhauser@responsAbility.com

Bangladesh Central Bank introduces measures of supervision of NGO led micro finance activities [2007-01-22]

The Bangladesh Central Bank has decided to introduce a series of measures designed to tighten its supervision of the large flows of cash that are handled by the non-governmental organisations (NGOs) that are active in the microfinance sector. There are more than 2,000 NGOs in the country, but up until now there has been no system in place to ensure the transparency and traceability of the large financial flows that circulate in the microfinance sector. A Microcredit Regulatory Authority (MRA) has now been set up and the NGOs are required to obtain a licence from this body in order to carry out their microcredit activities.

More information: http://blog.unitus.com/?p=251

"Transforming Microfinance Institutions: Providing full financial Services to the Poor" [2007-01-22]

By Ledgerwood J., White V., World Bank, 2006.

The publication aim is to provide the tools needed by MFIs who wish to carry out an institutional transformation in order to increase their range of financial services and products. The publication sets out the various stages of this transformation, such as the importance of adopting a competitive position, business planning, access to capital and financial management, and also uses practical cases to walk readers through the process.

For more information about this publication, which is available in English, see: http://publications.worldbank.org/ecommerce/catalog/product?item_id=5646933

"Mobile Phone Banking and Low-Income Customers: Evidence from South Africa" [2007-01-22]

The CGAP, the UN Foundation and the Vodafone Group Foundation

CGAP, UN-Foundation and Vodafone have recently published a groundbreaking study called "Mobile Phone Banking and Low-Income Customers: Evidence from South Africa" on the advantages of using mobile telephony as a tool to carry out financial transactions (m-banking) for the poor in South Africa. Their research shows that mobile-banking costs can be up to a third lower than those associated with the alternative, traditional banking methods. Furthermore, the study also shows that users are particularly keen on this technology since it is highly secure and user-friendly. Given the increase in the number of people who own mobile phones in the developing countries, this technology represents a mean to provide low-cost financial products and services to more than 3 billion poor people.

The document may be consulted, in English, at: http://www.cgap.org/publications/mobilephonebanking.pdf

Nobel Peace Price 2006- Current media coverage gives antiquated picture of Grameen Bank [2006-10-30]

BSM Finance is happy to congratulate Professor Muhammed Yunus and the Grameen Bank (GB) on winning the Nobel Peace Prize for "their efforts to create economic and social development from below"!

It is indeed well-earned that Yunus and the GB have been selected for this price, especially since we have all been able to benefit and learn from GB and its evolution. Nevertheless, we would like to draw your attention to the fact that the current media coverage is hardly considering the evolution of GB and the lessons that GB has incorporated over the last two decades.

For instance: Savings mobilization! In a recent contribution to the devfinance discussion Dale W. Adams mentions an article of Stuart Rutherford on how GB boosted deposit mobilisation during the past several years.
Read Dale W. Adams brief email here ("highlights" of the Rutherford article): postoffice.ag.ohio-state.edu...
or the entire original article of Stuart Rutherford (PDF)
or the note about the drastic change GB underwent in 2002, changing from Grameen's Classic System to the Grameen's Generalized System.

Read on: ../themes/#grameen2

Nouvelle publication sur les performances des IMF africaines [2006-10-30]

Forum pour l'évaluation des performances des IMF africaines

Le Forum pour l'évaluation des performances des IMF africaines vient de publier une étude intitulée « Analyse transversale des performances des IMF Africaines ». Cette publication est la première analyse transversale des évaluations réalisées au niveau des IMF membres du Forum permettant une analyse comparative dans le temps et dans l'espace du développement du secteur microfinancier en Afrique (tendances du marché, points forts, points faibles, benchmark etc.). Elle a été rédigée par le groupe des agences d’évaluation du Forum (MicroRate, Microfinanza et Planet Rating) qui ont dans un premier temps mutualisé leurs bases de données avant de procéder à l'analyse.

Pour en savoir plus télécharger l'étude Analyse transversale des performances des IMF africaines. http://www.lamicrofinance.org/files/18465_file_FORUM_2006_FR.pdf

Outcome and Impact Evaluation of Financial Sector Projects [2006-10-16]

Savings & Credit Forum organised by Intercooperation on behalf of Swiss Agency for Development and Cooperation, 8th December, Berne

The next Savings and Credit Forum organised by Intercooperation on behalf of the Swiss Agency for Development and Cooperation (SDC) will deal with the topic "Outcome and impact evaluation of financial sector projects". Speakers are Dr. Ruth Egger, former Vice Director of Intercooperation, Dr. Martin Brown, Senior Economist at the Swiss National Bank and Mr. Hans Ramm, head of the FEM team at Intercooperation.

Download more information and registration form: ../services/se-ex-fosacr.php

CGAP Focus Note [2006-10-04]

Graduating the poorest into Microfinance: Linking safety nets and financial services

This CGAP focus note deals with the question, how destitute people, specifically women headed households, can develop to become MFI clients in the future. The idea of the approach is to linking safety net programs with MFI activities through a process of graduation. This graduation process starts with safety net activities which in turn lead to increased food security. In stage 2 clients are encouraged to save parts of their income and they are provided with skill training and micro loans which lead to asset creation and experience in micro enterprising. Those who successfully move forward in this sequencing are likely to be ready to graduate to become conventional microfinance clients. The note provides cases from Bangladesh and Malawi including both, success stories and challenging examples.

Download the note under: http://www.cgap.org/portal/site/CGAP/menuitem.da0167f15fefd30167808010591010a0/

Introducing Individual Lending: A How-to Guide [2006-10-04]

By Women's World Banking

The Women's World Bank has just published a guide, in English, called the How-to Guide: Introducing Individual Lending (Dellien H. & Leland O., June 2006). The guide's aim is to walk MFIs through the implementation of an individual lending programme. The guide, which is based on best practices as well as specific case examples, is divided up into 6 sections and provides a step-by-step description of the implementation process.

The guide is downloadable at: http://www.womensworldbanking.org/English/PDF/Individual%20Lending%20How-to%20Guide.pdf

National Senegalese Microfinance Gateway [2006-10-04]

New outlook and broader performance

The Senegalese gateway's main aim is to ensure that resources that are currently dispersed are made accessible to organisations and individuals involved in the decentralised financial sector, so as to facilitate, in due course, the establishment of synergies and the sharing of experiences. It is worth having a look!

More information: http://senegal.portailmicrofinance.org/

ResponsAbility Global Microfinance Fund [2006-10-04]

The State Secretariat of Economic Affaires (seco), Switzerland sells its shares of the ResponsAbility Global Microfinance Fund

In 2003 seco investment 3 Mio Dollar into the Global Microfinance Fund managed by responsibility. (ResponsAbility is an organisation that links private social investors with viable microfinance institutions). Together with private investors such as Raiffeisen, Credit Suisse, Swiss Re and Bank Baumann the fund grew up to 60 Mio so far. In the meantime, Seco sees its mission achieved and withdraws its investments from the now a days financially independent fund.

Beyond Microfinance Building: Inclusive Rural Financial Markets in Central Asia [2006-09-11]

New Book from Asian Development Bank

This book focuses on rural finance development issues in a set of countries about which little current literature on the subject exists. It also represents an attempt to redress a serious imbalance in the attention paid to rural financial market development that has been created by the overwhelming interest in and emphasis on microfinance during the last 2 decades.

The book can be downloaded as PDF under http://www.adb.org/Documents/Books/Beyond-Microfinance/default.asp

Better Aid: Rethinking the Way We Work? [2006-09-11]

CGAP Virtual Conference

CGAP organizes a virtual conference on the effectiveness of aid provided by donor agencies to the microfinance sector, from September 11-15. Entitled "Better Aid: Rethinking the Way We Work?", the virtual conference is focused on the five core elements of aid effectiveness represented by the Aid Effectiveness Star:
1. Strategic Clarity (a common vision of microfinance aligned with good practice, which is internalized by staff and translated in the field).
2. Staff Capacity (sufficient staff with microfinance technical expertise relative to size and composition of microfinance portfolio to design, implement and monitor programming).
3. Accountability for Results (systems in place that ensure the transparency and performance-based management of microfinance programs and components).
4. Relevant Knowledge Management (a culture that promotes the creation, dissemination and incorporation of learning from own and others’ experience).
5. Appropriate Instruments (flexible instruments used in a manner that complements the private sector and local capital markets and adapted to market needs).

To join the discussion, visit: http://www.dgroups.org/groups/worldbank/BetterAid/index.cfm?op=dsp_join

Diversification en Microfinance [2006-08-22]

Portail de Microfinance

Ce dossier thématique se propose de faire le point sur les étapes et outils disponibles, pour réussir une démarche diversification de l'offre de services financiers au sein d'une IMF. Quelques exemples de nouveaux produits (par exemple crédits d'habitat, services d'épargne, transfert d'argent, micro assurances) donnent une idée de la diversité des solutions développées par les IMF, pour élargir leur base de clientèle. Des études de cas d'IMF illustrent ces nouveaux produits.

Pour plus d'information : http://www.lamicrofinance.org/resource_centers/diversification

Commercialisation de la Microfinance en Afrique francophone [2006-08-22]

CAPAF (Programme de renforcement des capacités des institutions de microfinance en Afrique francophone

Le CAPAF a annoncé la publication d'un nouveau rapport thématique appelé Commercialisation de la Microfinance. Le rapport aborde sur les défis et les différentes approches pour le développement commercial de la microfinance. Le rapport aussi élabore sur les stratégies utilisés pare les acteurs de la microfinance, les IMF, banques et les fonds d’investissement.

Pour plus d'information: http://www.capaf.org/pages/Commercialisation/approches.html

Evaluation on Aid Effectiveness of World Bank's and UNDP's Microfinance Projects [2006-08-22]

CGAP Focus Note 35, April 2006

Aid Effectiveness in Microfinance: Evaluating Microcredit Projects of the World Bank and the United Nations Development Programme. Following the evaluation this Focus Note highlights somewhat disappointing results. In fact, only one quarter of the projects financed are considered to have been successful, whilst the remaining projects are considered to have failed or to be highly unlikely to produce long-term results. Nevertheless, the report on which this Focus Note is based, does underline the fact that these evaluations represent an initial positive step towards an improvement in the allocation of the credits accorded by these two donor agencies.

The Focus Notes may be consulted, in English and French (PDF Version): http://snipurl.com/v9yd

Improving Risk Management for the Poor: Microinsurance Newsletter [2006-08-22]

CGAP Working Group on Microinsurance

The 10th Newsletter (July 2006) of the CGAP Working Group on Microinsurance addresses the important topic of how to Improve Risk Management for the Poor and how rural insurance can contribute to it. Among others the newsletter highlights an example of an index based livestock insurance (compared to insurance based on individual losses) in Mongolia.

Download the newsletter under http://www.microfinance.lu/comas/media/microassurance_10_an_2006.pdf

The gateway Microinsurance Focus with new outfit [2006-08-22]

CGAP Working Group on Microinsurance

Like to get a comprehensive overview on Microinsurance issues? The Microinsurance Focus of the Microfinance Gateway is an important resource center and has just had a face-lift. It has been fully updated and now has a range of new sections such as Getting Started or Insurance Products. The site is managed by ADA on behalf of the CGAP Working Group on Microinsurance.

It may be consulted at: http://www.microfinancegateway.org/resource_centers/insurance/

Mary Ellen Iskenderian appointed President and CEO of Women's World Banking [2006-08-22]

Women's World Banking supports affiliates and associates in succeeding as microfinance institutions (MFIs) and change agents, by providing tailored, integrated services. The outgoing President Nancy Barry served as WWB's President from 1990 to the present. She will be succeeded by Mary Ellen as per September 2006. Ellen has 20 years of experience in building financial systems as a senior manager in the International Finance Cooperation (IFC).

Hype and Hope: The worrisome state of the Microcredit Movement [2006-08-22]

Thomas Dichter, the author of "Despite good intentions: why development assistance to the third world has failed" takes a critical look at the microcredit movement and argues that it has done more harm than good. He argues that the poor can do little productive with microcredit and that the ones (the entrepreneurs) who can do the most with it do not really need microcredits but larger amounts. He argues that the marginal development returns from microcredits don’t warrant the enthusiasm nor the money spent so far. Even if the article seems to be a bit sharp in its critics it puts the finger on some important points and thus it is worth reading it.

Download at: http://www.microfinancegateway.org/content/article/detail/31747

The final report on the International Year of Microcredit is out now [2006-05-31]

By United Capital Development Fund

This document provides a final report on the International Year of Microcredit. The main goals of the Year were to assess and promote the contributions of microcredit and microfinance to the Millennium Development Goals (MDGs); increase public awareness and understanding of microcredit and microfinance; promote inclusive financial systems; support sustainable access; and encourage innovation and partnership.

This report will set forth how each of these goals were achieved. http://www.uncdf.org/english/microfinance/documents_and_reports/thematic_papers/yom2005/

Launch of the French Microfinance Network [2006-05-31]

The French Microfinance Network (FMN), an informal body for exchanges, consensus building and the sharing of expertise amongst French professionals, has just been created. The network is composed of donors, practitioners, universities and research centres and has the aim of holding regular meetings in order to promote a dynamic exchange of information between French professionals, to review the French position and degree of expertise regarding various issues and to capitalise and to disseminate the results of its work by making them accessible. Information generated by the network will be made available on the Forum Finances and Development website.

The address is: http://www.esf.asso.fr/portail/rubrique.php3?id_rubrique=66

New European Microfinance Platform [2006-05-31]

European Union Microcredit Network System

EUMNS (European Union Microcredit Network System) is a new multilingual platform containing specific sources of information such as technical glossaries, publications, newsgroups and case studies, as well as a database for European professionals. The platform emphasizes on EU dimension about the microfinance policies and basic programmes carried on at European and at bilateral level.

It can be visited at: http://www.idea-aisbl.org/eumns/

Microfinance Capital Market Update, No 8, April 2006 [2006-05-31]

CGAP and MIX

The CGAP and MIX have just made the latest issue of the Microfinance Capital Markets Update (No 8, April 2006) available on-line. The Update looks at recent developments in the microfinance sector and its links to the capital market. This issue provides an overview of the sector's most notable recent financial investments.

The Newsletter may be consulted, in English, at the following address: http://www.cgap.org/mcm/

Serving Migrants Sustainably [2006-05-31]

A case study of remittances services provided by a Microfinance Institution in India

The Asian Development Bank has published its quarterly Newsletter Focal Point for Microfinance (Volume 7, No 1, March 2006). It includes an interesting article on the role of MFIs in domestic remittance services for migrants in India.

This English language Newsletter is available at: http://www.adb.org/Documents/Periodicals/Microfinance/finance-200601.pdf

What constitutes international good practice in Small Business Lending? [2006-05-10]

Saving and Credit Forum, 19th June, Berne

The next Savings and Credit Forum organised by Intercooperation on behalf of the Swiss Agency for Development and Cooperation (SDC) will deal with small business lending. It will focus on how it has evolved over the past two decades and what constitutes international 'good' practice. It will highlight the experience of ShoreBank and the Bosnian micro credit institution "Mikrofin".

More information and registration form http://www.intercooperation.ch/finance/services/se-ex-fosacr.php

Microfinance Monitor: Legal and regulatory environment in Bosnia and Herzegovina, Albania, Russia and Armenia [2006-04-24]

Microfinance Centre for Central and Eastern Europe and the New Independent States

MFC has just published its "Microfinance Policy Monitor" (Nr. 8, January 2006) on the impact of the legal and regulatory environment for microfinance in the Eastern countries and highlights the tendencies and opportunities in the sector in this countries.

The publication is available in English: http://www.mfc.org.pl/doc/Monitor/Policy_Monitor_8_ENG.pdf

Framework for Reporting, Analysis and Monitoring of MFIs [2006-04-24]

Book release by the SEEP network

The SEEP Network introduced a new tool for MFIs: FRAME (Framework for Reporting, Analysis and Monitoring). This tool in form of a book will enable MFIs to develop financial performance measurement systems that comply with international standards and to produce reports that are more complete and that meet with the expectations of the various actors in the sector.

For more information about this new tool, see: http://www.seepnetwork.org/

Using Technology to Build Inclusive Financial Systems [2006-04-24]

Focus Note No. 32 by CGAP

What can Innovative Banking Technologies do for Microfinance?
This is just one of the questions addressed in CGAP's Focus Note 32, "Using Technology to Build Inclusive Financial Systems." The paper presents the state of the industry in regard to innovative technology in micro banking (ICT), its advantages and limits for poor people's access to financial services. To learn more about CGAP's technology work, please visit CGAP's Technology Resource Center, which also features resources on MFI information systems and other technologies for microfinance.

To visit CGAPs Technology resource centre click here: http://www.microfinancegateway.org/resource_centers/technology

WWB Launches Quarterly E-Newsletter [2006-04-24]

Women's World Banking

"The WWB Quarterly", the Women World Banking E-Newsletter was launched in March 2006. The quarterly newsletter focuses on Women World Banking (WWB) initiatives, announcements and publications in the Microfinance Sector. The first issue's highlights are:
- Women's World Banking Develops Next Generation of Leaders in Microfinance;
- WWB Affiliate, Fundacion WWB Colombia, Finances its Growing Operations with Bond Issues;
- WWB's 2005 Highlights
The Women's World Banking is a network that supports affiliates and associates in succeeding as microfinance institutions (MFIs) and change agents, by providing tailored, integrated services like technical services, financial products and services, policy change activities and linkages and learning services.

Download the newsletter here: http://www.swwb.org/English/4000/E-letters/March06.html#%20leaders

2004 MFI Benchmarks: Data Covers More Than 300 Institutions Worldwide [2006-02-28]

The MIX Market

The MIX published the 2004 benchmarks on the performance of retail microfinance providers around the globe. These benchmarks draw on the largest benchmarking data set ever compiled by the MIX, with 302 institutions covering the diversity of institutional types within the sector and their various stages of development

Read on: http://www.mixmarket.org/en/news/2004_benchmarks.asp

Book launched 'Access for All: Building Inclusive Financial Systems' - 10 Years of CGAP Experience [2006-02-28]

Published by CGAP, written by Brigit Helms

Access for All: Building Inclusive Financial Systems outlines the "new" vision of microfinance, laying out in plain language what CGAP and others in the development field have learned over the past 10 years about building inclusive financial systems. Access for All is neither a technical handbook nor a chronicle of the history of microfinance. Instead, it pulls together disparate sources of information to describe where the microfinance field finds itself in 2006, as well as the opportunities and challenges ahead

Further information: http://cgap.org/publications/access_for_all.html

Imp-Act findings and lessons in two new publications: Microfinance and Poverty Reduction and Managing the Social Performance of Microfinance [2006-02-28]

By Imp-Act

Imp-Act published a two-volume set entitled Money with a Mission, which represents the synthesis of findings and lessons learnt from its five-year action-research project on microfinance. Money with a Mission 1: Microfinance and Poverty Reduction deals with the question of how far MFIs are contributing to global poverty reduction and what they can do to improve on this performance. Money with a Mission 2: Managing the Social Performance of Microfinance reflects the implications of a social performance management agenda from the perspective of twelve partners from Asia, Africa, Latin America and Europe that participated in the Imp-Act programme.

Both books can be ordered from http://www.ntd.co.uk/idsbookshop/

Documentation of Symposium "Microfinance: A path to prosperity" of June 2005 is available now [2006-01-15]

Swiss Agency for Development and Cooperation (SDC) and State Secretariat for Economic Affaires (seco)

In June 2005 the Swiss Agency for Development and Cooperation (SDC) and the State Secretariat for Economic Affaires (seco) held the symposium Microfinance: A Path to Prosperity: On the Role of the Financial Sector in Promoting Development. This symposium was one of the main events in the frame of the UN year of the Microcredit organised by SDC/seco.

The documentation of the symposium is now available at: http://www.sdc.admin.ch/microfinance2005

Documentation of Luxembourg Round Table of Microfinance, 2005 available now [2006-01-15]

The Round Table of Microfinance took place in October 2005 in Luxembourg. It was an important initiative by the Luxembourg Government in the Un Year of Microfinance. The round table offered an international platform for exchange and learning for various actors of the government, civil society and private sector. Main themes of the round table dealt with capital markets, rural finance and the European initiatives in microfinance.

Now, the minutes, presentations and studies of the conference are available under: http://www.microfinance2005.lu/

Equity Investment in Leading Indian's CASHPOR Financial & Technical Services [2006-01-15]

By Grameen Fundation USA and Vinod Khosla Engineer

Grameen Fundation and Silicon Valley venture capitalist Vinod Khosla Engineer have orchestrated a half a million dollar equity investment in CASHPOR Financial and Technical Services, one of India’s leading microfinance institutions (MFIs). This substantial investment of $250,000 each from GFUSA and Khosla will strengthen microfinance activity in Uttar Pradesh and Bihar where CASHPOR has been the lone MFI, and help the organization reach its goal of 500,000 very poor households by 2010.

For more info: http://www.gfusa.org/newsroom/news/~story=135

Managing risks and designing products for agricultural Microfinance: Features of an emerging model [2006-01-15]

CGAP occasional paper by Bob Christen and Doug Pearce

The Occasional Paper offers an emerging model for agricultural microfinance combining the most relevant features of traditional microfinance and agricultural finance. It discusses a number of approaches - such as linking loans to contractual farming arrangements, buying index-based insurance, making use of technology and existing institutional infrastructure in rural areas - which successful agricultural microfinance organizations and others have used to address specific challenges.

To learn more about what features have contributed to the success of agricultural microfinance and the remaining challenges download the paper: http://www.cgap.org/docs/OccasionalPaper_11.pdf

Do Interest Rates Matter? Credit Demand in the Dhaka Slums [2006-01-15]

ADB Institute Discussion Paper No. 37 by Rajeev Dehejia, Heather Montgomery, Jonathan Morduch

The ADB discussion paper is an important contribution to the on-going discussion on whether high interest rates can really be afforded by low-income households, for the sake of financial sustainability of the microfinance institutions. This paper uses data from SafeSave, a credit cooperative in the slums of Dhaka, Bangladesh, to examine how sensitive borrowers are to increases in the interest rate on loans.

Abstract and full version of the paper are downloadable at: http://www.adbi.org/discussion-paper/2005/09/13/1370.credit.demand.dhaka/

State of the Microcredit Summit Campaign Report 2005 [2006-01-15]

Microcredit Summit Campaign

The Microcredit Summit Campaign Report 2005 finds seven-fold increase in growth of microcredit to impoverished families. As of December 31, 2004, 3,164 microcredit institutions have reported reaching 92,270,289 clients, 66,614,871 of whom were among the poorest when they took their first loan. Of these poorest clients, 83.5 percent, or 55,622,406 million, are women.

Download the report here: http://www.microcreditsummit.org/enews/2005-12_index.html

Seco outsources management of development investment portfolio to Sifem [2006-01-15]

The Swiss State Secretariat for Economic Affairs (SECO) has outsourced the management of its investment portfolio in developing and transition economies to Sifem (Swiss Investment Fund for Emerging Markets), a professional development finance company based in Berne. The portfolio of USD 200 million is either invested in microloans, to microfinance funds or private equity funds.

More information: http://www.seco-cooperation.ch/aktuelles/pressemitteilungen/00083/?lang=en

Micro Finance Fact Sheet: A financial performance tool [2006-01-15]

Belgian Raiffeisen Foundation

BRS has made available online its MFI Fact sheet. This fact sheet is an easy to use financial performance tool for MFIs using financial indicators and graphics, with Excel. It is available in English, French and Spanish; the user just needs to select the chosen language in the menu bar.

More information: http://www.cera.be/brs/fr/news

M Wenner "Agricultural Insurance Revisited: New Developments and Perspectives in Latin America and the Caribbean" [2006-01-15]

New Publications on Agricultural Micro Insurance

Wenner's paper reviews why agricultural insurance is a difficult product to deliver in an efficient and sustainable manner; highlights current trends in the Latin America region; draws lessons from experiences in countries with more developed agricultural insurance; and makes recommendations as to how to systematically develop crop insurance markets based on field work in Central America and case studies from Peru, Dominican Republic, and Uruguay.

Download the whole document: http://www.iadb.org/sds/ENV/publication/publication_210_4286_e.htm

FAO (R. Roberts) "Insurance of crops in developing countries" [2006-01-15]

New Publications on Agricultural Micro Insurance

The FAO publication gives a brief introduction to crop insurance, with the accent on the scope for crop insurance products in developing countries. The document points out that the occasions when insurance is the most cost-effective risk management mechanism are few, but the opportunities are growing, particularly with new approaches such as index-based insurance.

Download pdf: http://www.ruralfinance.org/id/27021

new e-newsletter, titled "AccessFinance" [2005-11-22]

Published by the World Bank's Access to Finance Thematic Group

The World Bank's Access to Finance Thematic Group is publishing an informative e-newsletter, titled "AccessFinance". The September issue includes references to the following topics/publications: (i) Access to Financial Services: A Review of the Issues and Public Policy Objectives; (ii) Rural Finance: Recent Advances and Emerging Lessons, Debates, and Opportunities; (iii) Role and Effects of Credit Information Sharing; (iii) Credit Bureaus in Latin America: Expanding Financial and Other Services to the Base of the Pyramid; (iv) Core and Headline Indicators on Access to Financial Services; (v) The World Bank's "unorthodox" approach to credit union creation in Albania and Moldova; (vi) Improving the Development Impact of Remittances; and, (vii) Crossing Borders: Remittances, Gender and Development.

To subscribe to the newsletter: www1.worldbank.org/finance/html/accessfinance/

CD Box "Listening to Clients" [2005-11-22]

A client asssessement training tool by MicroSave and Microfinance Opportunities

MicroSave and Microfinance Opportunities launched a CD-Box Set "listening to clients", a step-by-step training resource for qualitative and quantitative client assessment. Using video CDs with embedded PowerPoint presentations, this tool demonstrates techniques to collect and analyse client data. Costs: 100$

For more info and order visit: www.microfinanceopportunities.org

"Lessons about rural finance" [2005-11-22]

by 'Rural Finance'

This report examines recently made lessons about rural finance, and identifies the recent advances, current debates, major gaps, challenges and opportunities that confront efforts to expand and strengthen it.

Read www.ruralfinance.org/id/23579

"Microfinance and Poverty: Evidence Using Panel Data from Bangladesh" [2005-11-22]

by: Shahidur R. Khandker

This article examines the effects of microfinance on poverty reduction at both the participant and the aggregate levels using panel data from Bangladesh. The results suggest that access to microfinance contributes to poverty reduction, especially for female participants, and to overall poverty reduction at the village level. Microfinance thus helps not only poor participants but also the local economy.

Download article at: wber.oxfordjournals.org/content/vol19/issue2/index.dtl

Arabic Microfinance Gateway [2005-11-22]

Launched by CGAP, Sanabel and Grameen-Abdul Latif Jameel

The Arabic Microfinance Gateway provides access to a number of Arabic documents and tools; daily news on industry happenings; links to industry newsletters and microfinance FAQs; a glossary of microfinance terms in Arabic; information on training opportunities and events, and hosts a job market.

More information: arabic.microfinancegateway.org

Imp-Act. Policy Note (2005, No. 2) [2005-11-22]

"Working with Formal Financial Institutions: Expanding Access and Achieving Social Performance"

This Policy Note outlines the rationale behind creating linkages with the formal financial sector, the challenges in doing so, and makes recommendations on how to ensure these linkages lead to the goal of deepening and expanding access to the poor

Read: www.ids.ac.uk/impact/publications/policy_notes.html

Bringing affordable communications to rural Africa [2005-11-22]

Nokia and Grameen Foundation USA join forces

Grameen Foundation USA started a new collaboration with Nokia that is designed to accelerate efforts to make universal access in rural areas of Africa, particularly Uganda and Rwanda. As part of those efforts, GFUSA will also study the broader impact of mobile telecommunications on socio-economic development and individual business integration and will also evaluate microfinance as a sustainable tool to make telecommunications access more affordable.

More information: www.gfusa.org/newsroom/news/~story=133

CGAP and World Bank. Release of Focus Note [2005-11-22]

"Anti money laundering regulations. Implications for financial service providers that serve low-income people"

The Focus Note examines the impact of anti money laundering regulations on poor people's access to finance. The paper warns that for the poor who depend on microfinance services, the increased costs of institutions' compliance and tighter restrictions may have the unintended consequence of driving low-income clients out of the formal sector.

Download Focus Note at: www.cgap.org/docs/FocusNote_29.pdf [PDF]

Pro-Poor Innovative Challenge, Round VIII [2005-11-22]

Launched by CGAP

Extending financial services to larger numbers of very poor populations continues to be one of the biggest challenges facing the microfinance industry. In order to foster innovation development to reaching clients excluded from the mainstream microfinance, CGAP opened its VII round of the pro-poor innovation challenge (PPIC). CGAP is currently seeking applications from smaller, less well-known institutions and larger institutions committed to launching or expanding a specific service line tailored to the very poor. The PPIC awards, of up to $50,000 to five institutions. Deadline is 1st of December 2005.

More information: www.cgap.org/projects/PPIC/ppic.html

CGAP and Iris: Launching of the online Regulation and Supervision Resource Center [2005-09-20]

The resource center brings together information and resources on recent experiences in regulating and supervising around the world. It includes a library with recommended reading, country profiles and a comparative database. The Resource Center also commissions essays on regulation and supervision in which policymakers, practitioners, and others provide their views on the impact of regulatory reform on microfinance, starting with a featured essay on Bosnia and Herzegovina.

Read more on www.cgap.org/regulation and/or contact regulation@cgap.org

DFID and Vodaphone: Project in Tanzania and Kenya to pay bills by text message [2005-09-20]

DFID and Vodaphone are conducting a joint project in villages throughout Kenya and Tanzania, which will make it possible to pay bills by text message. A pilot should be ready to enter the market later this year. This Vodaphone project is backed by the DFID's Financial Deepening Challenge Fund (FDCF), which is a cost-sharing grants scheme as to encourage the private sector to contribute to the achievement of poverty eradication.

For more information, visit www.dfid.gov.uk/casestudies/files/africa/kenya-vodafone.asp

The Profile of Microfinance in Latin America in Ten Years: Vision & Characteristics. [2005-06-28]

by Beatriz Marulanda & María Otero
ACCION International publishes a new study "The Profile of Microfinance in Latin America in Ten Years: Vision & Characteristics" The study was prepared with regard to the Microcredit Summit, and written by ACCION president Maria Otero and Beatriz Marulanda. The study examines the state of the microfinance industry in Latin America today and looks at the challenges and opportunities in the coming decade. It also provides recommendations about the role of banks, specialized microfinance institutions, NGOs, regulators, donors and governments in assuring a healthy industry with an ever-broader outreach. These analyses are based on statistical data from approximately 100 MFIs and interviews with 28 microfinance players.

Please consult www.accion.org/micro_speeches_articles.asp for PDFs of the full study as well as a 10-page Executive Summary

MicroBanking Bulletin: Financing Microfinance: The Scope of Funding Mechanisms. Special Edition! [2005-06-28]

The Microfinance Information Exchange (MIX) is introducing a special edition of the MicroBanking Bulletin, focusing on the supply of funding to microfinance. The eleventh edition of the MicroBanking Bulletin marks two significant innovations. The first is the introduction of a "supply side" edition that focuses on the financial markets that are the source of capital for most MFIs (domestic and international). The second innovation is the use of a guest editorial committee organized around a theme of interest to the industry.

The text of the MBB 11 is available for download on the MIX Market website www.mixmarket.org

Microfinance institutions are preparing sustainability reports using Global Reporting Initiative Guidelines [2005-06-15]

Six MFIs from Africa, Asia and Latin America are now preparing sustainability reports using Global Reporting Initiative Guidelines: Acleda Bank in Cambodia, K-Rep Bank in Kenya, Centenary Rural De-velopment Bank in Uganda, FIE in Bolivia, Banco Solidario in Ecuador, and FINDESA in Nicaragua. Triple bottom line reporting, which covers social and environmental as well as financial information, is not completely new to the microfinance sector, but the use of GRI guidelines is. The degree to which the GRI framework is appropriate for this sector will be borne out by the experience of the six pioneering MFIs. The reports will be backed by Triodos Bank

More information: www.socialfunds.com/news/article.cgi/article1664.html

Social Performance Indicators, an overview on the initiative by Cérise [2005-06-15]

A new highlight on Social Performance Indicators is now available on the French Microfinance Portail. Compiled by Cérise, this highlight explores the issues of social performance in microfinance, and describes the measuring tool SPI. Based on the growing demand from the donor community and investors, and also from MFIs them-selves for self- evaluation purposes or for attracting financing, the measurement of social performance is becoming an important topic.

Read more on www.lamicrofinance.org/content/article/detail/15745
For Social Performance Indicators also refer to the resumes and presentation of the Savings and Credit Forum of Intercooperation/SDC from October 2004: www.intercooperation.ch/finance/download/#pvsc

March 05 issue of Micro Finance Matters [2005-05-30]

"Meeting the challenge: The inclusive financial sector as development paradigm" by Kathrin Imboden (Senior Policy Advisor, UNCDF)
In the March 05 issue of Micro Finance Matters: "Challenges in building inclusive financial sectors" an article by Kathrin Imobden defines the new paradigm of the inclusive financial sector, in which financial services are available to the vast majority of the population. Imboden promotes an understanding of financial services to poor people as part of financial sector policies rather than as an isolated microfinance strategy. She follows the questions of why the financial sectors are not inclusive? And how inclusive financial sectors can be built?

www.uncdf.org/english/microfinance/newsletter/pages/2005_03/news_challenge.php

Launching of CGAP's Saving Information Resource Centre (SIRC) [2005-05-30]

The newly launched Saving Information Resource Centre offers an opportunity to learn and share information on deposit mobilization among poor and excluded communities. SIRC is designed as a one-stop shop for information on savings services for poor communities. A "Search by Topic" tool allows accessing the vast amount of existing information on savings via a list of selected keywords. Real-life stories of people working in financial institutions and trying to improve their savings services are collected in "change makers". A "virtual study tour" takes you around the globe to visit different countries and financial institutions. More questions about mobilizing deposits from poor clients? Read answers from industry leaders in the regular "ask the experts" column. Other services include frequently asked questions, a glossary, information on CGAP's savings initiative, and links to the websites of organizations that specialize in savings.

microfinancegateway.org/resource_centers/savings/

Microinsurance Newsletter No 6, March 2005 [2005-05-30]

The Working Group on Microinsurance initiated by CGAP aims at facilitating coordination between initiatives towards the development of insurance products for low-income households. The March 05 issue of the quarterly microinsurance newsletter lists some criteria for successful microinsurance. Further, it outlines the concept of the insurance pyramid including alternative insurance structures and their complementary relationships to each other. A case study on the TYM's Mutual Assistance Fund, Vietnam, describes experiences and lessons with a micro life insurance that protects against death of a client or its family members.
As a permanent element of the newsletter, the collection of links, events and publications in the micro insurance sector makes the newsletter a rich source of information for all interested in micro insurance.

www.microfinance.lu/ada/internal.php?c_n=268

SDC Symposium: Paths to Prosperity. Contributions of the financial sector to the attainment of the Millenium Development Goals [2005-03-22]

Date: 30. June 2005
Place: Kursaal/Hotel Allegro, Bern, Schweiz

Further information: SDC Symposium - 'Paths to Prosperity'
and SDC YOM Page

Ninth Issue of Microfinance Matters [2005-03-14]

Focus: The Indian Ocean Tsunami and the Role of Microfinance
The 9th issue of Microfinance Matters (an online publication of UNCDF) is dedicated to the role of Microfinance in the aftermaths of the Tsunami in South-East Asia. The publication outlines the potential and limitations of Microfinance initiatives in reconstruction and income and employment generation in a post disaster context. This issue assembles a number of reports with experiences of microfinance initiatives in Sri Lanka, India and Indonesia and contains lessons learnt as well as a set of guidelines by CGAP for MFI's and Donors in post disaster Asia.

This 9th issue is downloadable at: www.uncdf.org/english/microfinance/newsletter/pages/2005_02/

Launching of web-site on Microfinance for the rehabilitation of Tsunami affected areas [2005-03-14]

The Sri Lanka People's Bank, through its German-supported Rural Banking Innovations Project (RBIP), has launched a website on sustainable microfinance for the rehabilitation of Tsunami affected areas. It aims to provide comprehensive information on Tsunami-related microfinance activities in Sri Lanka for microfinance-practitioners and donors, and a market place for microfinance practitioners looking for assistance and donors/investors providing assistance. Furthermore, it wants to promote best practices and lessons learned in disaster-affected areas, thereby referring to other disasters in Nicaragua and Bangladesh.

www.microfinance.lk

Green Microfinance [2005-03-14]

New website for environmental criteria in Microfinance.
Green Microfinance, a group of environmental and microfinance practitioners tries to raise critical awareness for environmental issues in microfinance. It seeks to gather and disseminate guiding principles for microenterprises and environment, lessons learned including environmental criteria in microfinance operations via its website.

More information: www.greenmicrofinance.org

CGAP: Donor Guidelines on Best Practice: The Pink Book [2005-03-14]

These Guidelines seek to raise donor staff awareness of good practice and improve the effectiveness of donor operations in microfinance. The lessons learned during 30 years of support to the sector are translated into practical, operational guidance.
CGAP is asking for feedback on the use of these guidelines until August 2005. The final feedback will be incorporated in a second edition of the guidelines entitled "Building inclusive financial systems".

Download at: www.cgap.org/docs/donorguidelines.pdf [PDF, 577 KB]

New "Portail Microfinance launched [2005-02-21]

The French-speaking world of the microfinance sector does now have its web-portal, the "Portail Microfinance". Just as the Microfinance Gateway in English the Portail Microfinance in French is a one-stop microfinance information portal. It is a rich source for thematic documents on microfinance issues, for news, conferences and workshops or for accessing experiences and lessons learned from other actors of the microfinance sector. The content is specifically adapted to the needs, the interests and the experiences of the francophone actors of the microfinance sector.

Please visit the site on: www.lamicrofinance.org

Microcredit Summit Campaign Report 2004 [2005-02-21]

The State of the Microcredit Summit Campaign Report 2004 is now available. The data for this report was gathered from almost 3.000 microfinance institutions worldwide and counted more than 80 million clients served overall. Of these, 54.8 million were living on less than $1 a day when they took their first loan. The report is part of an initiative, inspired by the Millennium Development Goal focused on cutting the proportion of people living below $1 a day in half by 2015.

To be downloadable at: http://www.microcreditsummit.org/pubs/reports/socr/2004/SOCR04.pdf

Migrant remittances: Launching of quarterly newsletter [2004-12-06]

The second issue of the "Migrant Remittances Newsletter" is available now. The newsletter is offering a forum to share information about migrant remittances (debates, new developments or initiatives, new data, case studies, and publications). It is distributed electronically, to receive it regularly you can register with an email to: remittances@bannock.co.uk. The first issue of August 04 gives an overview on topics and trends including the latest global flow data on money transfer services and regional remittances. The theme for the November 04 issue is "Domestic and intra-regional remittances.

More information and download archive

Individual Country Profiles of Microfinance Regulations [2004-12-06]

The IRIS Center of the University of Maryland compiled country profiles that analyze the legal and regulatory situation for microfinance. The analysis bases on consultation of applicable laws and regulations, secondary articles, and knowledgeable stakeholders, practitioners, lawyers etc. and distils the information into a standard template.

To get further explanations on the structure of the guide go to: www.cgap.org/regsup/aboutprofiles.shtml
To access the list of about 50 country profiles go to: www.cgap.org/regsup/

Technology Investment Decisions for MFIs [2004-12-06]

CGAP has released a new tool for MFI managers and boards entitled "Technology Investment Decisions: 10 Key Questions". This short document outlines ten key questions that directors and managers should be able to answer when considering technology investments, such as the reasons for implementation, the alternatives considered, and the benefits expected. The questions are available in English, Spanish and French.

Downloadable: www.cgap.org/iss_site/documents.html

CGAP occasional paper on "Interest Rate Ceilings and Microfinance: The Story So Far" [2004-12-06]

The high interest rates charged by many microfinance institutions have attracted the attention of policy makers throughout the world. In many countries, governments have reacted by imposing interest rate ceilings to "protect" the poor from high interest rates. Unfortunately, these measures have often had the opposite effect, hurting poor people by shrinking their access to financial services. This Occasional Paper presents the state of current knowledge, including a CGAP survey, which identifies nearly 40 cases of interest rate ceilings. It examines the impact of interest rate ceilings on microfinance clients, and concludes with policy recommendations on fostering lower interest rates through competition and consumer protection, without imposing interest rate ceilings.

Paper downloadable: cgap.org/docs/OccasionalPaper_9.pdf [PDF]

Rural Finance Learning Center [2004-12-06]

The Rural Finance Learning Center is the new information gateway providing access to information and materials designed to support capacity building in organisations providing financial services in rural areas. For instance, currently the learning centre is in the process of developing free interactive self-study microfinance distance learning lessons.

www.ruralfinance.org

Savings and Credit Forum organized by Intercooperation: Social performance of micro finance institutions [2004-11-11]

To: members of the Savings & Credit Forum and interested persons
Date: Friday November 19, 2004 (09.30h-16.00h)
Location: Altes Tramdepot, Berne.

Detailed programme and registration information

Principle and Practices for Regulating and Supervising Microfinance [2004-10-25]

This publication by Tor Jansson , Ramón Rosales , Glenn Westley (9/04, E, S) is addressed to banking supervisory authorities that want to develop a framework for the prudential regulation and supervision of microfinance. It is written in response to the growing demand for guidance on how to develop such a framework. An increased awareness of the potential of microfinance, together with the emergence of numerous successful and rapidly growing microfinance institutions, has placed this issue on the policy agenda of most countries in Latin America.

Full text publication available: www.iadb.org/sds/doc/principlenpract.pdf

CGAP Software Reviews, Ten Brand New Software Reviews Completed [2004-09-16]

CGAP has updated the review of 6 softwares and conducted 4 new reviews of commercially-available information systems packages. This software ranges from less expensive products for smaller institutions to products that can meet the needs of banking institutions. CGAP evaluated each software application in six areas including Functionality, Scalability, Ease of Use, Technical Capabilities, Management Reporting and Data Analysis, and Services To view the software review visit 64.78.5.216/dev/cgap/iss/product_detail.cfm?id=384&tab=review.

For more information or assistance please e-mail CGAP's Microfinance Technology Program at cgapmtp@worldbank.org

CGAP's Microfinance Technology Program (MTP) [2004-09-16]

If you haven't noted yet (see Devfinance October to December 2003), CGAP has also launched a fund for Information Systems (IS). This fund will provide co-funding (60%) for MFIs trying to improve their information systems.

For more information or to apply to the IS Fund see www.isfund.org

ACCION InSight, No 11, August 2004, Experiences with Rural Finance in Latin America and Africa [2004-09-16]

Accion InSight is a one-topic bulletin that highlights policy viewpoints and ongoing research in the microfinance field. In the past two years, ACCION has worked with several institutions in Latin America and Africa to institute or expand rural lending programs. The actual issue is about listing of the experiences of ACCION's affiliates and partners in rural areas and relates lessons from that experience on how urban, commercially-oriented microfinance institutions can enter rural markets.

www.accion.org/micro_pubs_dl_main.asp

Recommendations on Donor Guidelines to Support Microfinance Associations, June 2004 by SEEP Network [2004-09-16]

In November 2002, the Africa Microfinance Network (AFMIN) and the German Agency for Technical Cooperation (GTZ) organized a workshop in Accra, Ghana, to examine the role of MFAs in developing the microfinance industry. The workshop resulted in the Accra Declaration, which put forth a mutual commitment to move toward more systematic cooperation between MFAs and international partners through an agreement on guidelines for cooperation. This document provides donor agencies with recommendations for supporting and funding microfinance associations (MFAs).
With support from GTZ, The SEEP Network convened a working group comprising representatives from MFAs, donor organizations, and technical service providers to develop the MFA donor guidelines

Download [PDF, 102 KB]

Imp-act Newsletter, No 5, May 2004 [2004-09-06]

Imp-Act is a three-year action-research programme that aims at improving the quality of microfinance services and their impact on poverty through the development of impact assessment systems. Imp-act has now entered its final phase, during which the findings and experiences of the programme will be communicated to diverse audiences. One key issue to emerge from the programme learning is the importance of developing internal systems to provide MFIs with information about progress towards achieving their social and financial objectives. The two main contributions of this newsletter are the following: "A Promising Approach to Social Performance Management" by Katarzyna Pawlak and Michal Matul and Taking Stock: "A New Gender Agenda for Microfinance?" by Susan Johnson.

www.ids.ac.uk/impact/

Central Asia Microfinance Center to be launched in 2005 [2004-09-06]

The Consultative Group to Assist the Poor (CGAP) and the Microfinance Centre for Central and Eastern Europe and the New Independent States (MFC) announce the launching of the Central Asia Microfinance Center in Almaty, Kazachstan, in January 2005. The Central Asia Microfinance Center is a joint effort that will provide a crucial factor in enhancing MFC and CGAP's impact and catalytic role in Central Asia. The Central Asia Center will help meet the rising demand for on-site policy work, local donor coordination, and market development in the four countries of Central Asia.

BWTP (Banking With The Poor) established the Asia Resource Center in Microfinance (ARCM) [2004-09-06]

The ARCM aims at encouraging partnerships and cooperation between the different stakeholders in the microfinance sector in Asia. It also aims to build a knowledge management platform accessible to all microfinance actors in the Asia region, in order to enhance institutional capacity, to increase the dissemination of innovations, and to develop regional and sub-regional standards in microfinance.

www.bwtp.org

Microinsurance Newsletter and Africa Microfinance Network (AFMIN) Newsletter [2004-07-04]

We would like to draw your attention on two recent newsletters, the Microinsurance Newsletter and the Africa Microfinance Network (AFMIN) Newsletter.
The latest Issue, No 3, April 2004 of the "Microinsurance Newsletter" of the CGAP working group is dedicated to the theme "Improving Risk Management for the Poor" [1]
The quarterly newsletter, No 1, Jan-March 2004 of the Africa Microfinance Network (AFMIN) is a collection of current AFMIN activities [2].

[1] www.microfinance.lu/
comas/media/microinsurance3_april04.pdf
[2] www.microfinancegateway.org/files/
18783_African_Microfinance_Network_Newsletter.pdf

UN International Year of Microcredit [2004-07-04]

he UN General Assembly designated 2005 as the International Year of Microcredit and has invited Governments, the United Nations system, concerned non-governmental organizations and others from civil society, the private sector and the media to join in raising the profile and building the capacity of the microcredit and microfinance sectors. Through a concerted, collaborative and spirited effort by all stakeholders, microcredit can assume an even larger role in the global strategy for meeting the international pledge of the Millennium Development Goals (MDGs) and the commitment to cut poverty in half by 2015.
This web site contains a concept paper for the year of the Microcredit and is informing about upcoming events.

www.uncdf.org/english/microfinance/year/

11 Key principles of microfinance [2004-07-04]

In connection with the year of microcredit 11 key principles were developed and endorsed by CGAP and its 28 member donors, and further endorsed by the Group of Eight leaders at the G8 Summit on 10 June 2004.

www.cgap.org/keyprinciples.html

Peer review on SDC's effectiveness in financial sector development [2004-03-02]

In 2002, CGAP joined with DFID Secretary of State Clare Short and other Ministers and agency heads to launch a unique aid effectiveness initiative: Microfinance Donor Peer Reviews. A total of 17 bilateral and multilateral agencies have signed on to the review exercise. A peer review team of four people has visited SDC Berne in August 2003. The Donor Peer Reviews address aid effectiveness from a unique perspective. Rather than concentrate on constraints at the country level (governance, corruption, macroeconomic instability, etc.), the reviews focus on what donor agencies can most directly influence: their own procedures, practices, processes and systems. The letters to management that emerge from these reviews are available online:

www.cgap.org/projects/donor_peer_reviews.html

USAID, FINCA International and VISA announce a microfinance partnership [2004-03-02]

The US Agency for International Development (USAID), FINCA International (Foundation for International Community Assistance) and Visa International today announced a major public-private partnership that aims to bring new efficiency and security to microfinance clients in the developing world utilizing electronic payment products. The initiative builds upon a two-year partnership between FINCA and Visa to improve the delivery of financial services to entrepreneurial women in developing countries.

Microfinance investment fund, MicroVestOne [2004-03-02]

MicroVest has been created as a capital-mobilizing intermediary for microfinance "banks". The fund is organized along commercial lines with a strong private sector board. Its objectives are:
- to provide capital for microfinance institutions.
- to help build capital markets for the macro-economic system.
- to leave behind self-sustaining financial businesses serving the poor.
MicroVest is seeking partners to help make financial markets work for the poorest men and women of the world by building a new microfinance institution that links capital markets and MFIs. The fund has now secured $US 15 million. It will remain open to additional equity investors until December 31, 2004.

You will find further information under www.microvestfund.com

Microfinance investment funds [2004-03-02]

ADA in Luxembourg published an interesting and analytical study on international investment funds in microfinance, which lists and compares different funds, with their names, characteristics and locations. The documents is available un English and in French under:

www.microfinance.lu/ada/news.php

The Inter American Development Bank establishes and emergency fund for microfinance institutions [2004-03-02]

This pioneer mechanism is meant to help microfinance institutions hit by economic crises or natural disasters. The Multilateral Investment Fund (MIF) will provide up to $US 4.5 million in financing to create an emergency liquidity facility that will help Latin American and Caribbean microfinance institutions weather economic crises and natural disasters. The MIF, an autonomous fund administered by the IDB, plans to partner with other multilateral and private institutions that support microenterprise development to establish Emergency Liquidity Facility S.A. (ELF).

You can read the full article under www.iadb.org/NEWS/DISPLAY/PRView.cfm?PR_Num=03_04&Language=English

Rating fund - Fonds de notation et d'évaluation pour la microfinance [2004-03-02]

La version française du site du Fonds de notation et d'évaluation pour la microfinance (Rating Fund) de la BID et du CGAP est maintenant tout à fait opérationnelle. Le Fonds de notation peut financer jusqu'à 80 % (avec des plafonds par région) du coût d'une notation/évaluation encouru par une IMF. Il peut également financer le coût des mises à jour sur une base dégressive : jusqu'à 60 % du coût total (avec plafonds) pour la première mise à jour et jusqu'à 40 % du coût (avec plafonds) pour la deuxième mise à jour demandée par une même institution. Le Fonds peut financer une notation (rapport analytique assorti d'une notation spécifique) aussi bien qu'une évaluation (rapport analytique sans notation spécifique) d'une IMF, sous réserve que ce rapport soit réalisé par l'un des Organismes de notation et d'évaluation agréés par le Fonds.

Pour de plus amples informations: www.ratingfund.org/french/

Impact evaluation and marked research in microfinance in Latin America [2004-03-02]

IDEAS publica un boletín electrónico, MicroEval, que aparece cuatro veces al año para informar a los lectores interesados sobre las actividades de evaluación de impacto e investigación de mercado en el sector microfinanciero en América Latina. Los autores son personas capacitando sobre las herramientas AIMS-SEEP y MicroSave. Este boletín tiene información útil de los procesos de otras instituciones de microfinanzas (IMFs) en América Latina. MicroEval es una colaboración de esfuerzos entre varias organizaciones de América Latina, incluyendo: Fundación COVELO - Honduras, ASOMIF en Nicaragua, Red Imp-Act de Latinoamérica, red COPEME de Perú, PROMIFIN-COSUDE en Nicaragua, CIWG de SEEP Network, Imp-Act basado en Inglaterra, MicroSave-Africa (Kenya), Micofinance Opportunities (DC), Fundación Ford América Latina, Oikocredit Central America, Integración Bank America Central. Para inscribirse GRATIS en la lista de lectores de MicroEval, visite la página web:

www.ideasnet.org

International Year of Microcredit (2005) [2003-10-29]

The year 2005 has been declared the international year of microcredit by the General Assembly of the United Nations in 1998. The assembly requested that the year's observance be a special occasion for giving impetus to microfinance programmes throughout the world. All those involved in poverty eradication are asked to take additional steps to make available financial and related services for self-employment and income generating activities to an increasing number of people living in poverty. Governments, NGOs, the private sector and the media are invited to highlight the role of microfinance in poverty eradication, its contribution to social development and its positive impact on the lives of the poor.

Information on the action program can be found under www.uncdf.org/english/microfinance/year/

First Microfinance Bank in Kabul, Afghanistan [2003-10-29]

The Agha Kan Fund for Economic Development (AKFED) received a banking license for the First MicroFinance Bank (FMFB) in Kabul, Afghanistan. The institution, with an initial capital of US$ 5 million, will be the first of its kind to be established under the country's new regulatory structure. AKFED, the majority shareholder in the new bank, has mobilised international resources to help create an institution focused on poverty alleviation and that has a strong regional presence. The International Finance Corporation (IFC) is expected to take a 19% share in the Bank. The Kreditanstalt für Wiederaufbau (KfW), the German Development Bank, is discussing an equity stake and other support. The institution has been receiving support from the World Bank Group-administered Norwegian Trust Fund, the Japanese Social Development Fund, and the Dutch Trust Fund. Discussions are underway for support from US Agency for International Development and the European Commission.

You will find further information under www.akdn.org/news/fmb_180903.htm

Post-conflict Microfinance Project [2003-09-10]

Those who have always asked themselves how microfinance services can contribute to poverty alleviation in post-war situations, and how microfinance institutions can survive armed conflicts, can download the results of four case studies made in Angola, Cambodia, Mozambique and Rwanda on the following website (www.postconflictmicrofinance.org). This DFID funded action research program aims at increasing the provision of sustainable microfinance services in post conflict situations. Towards this goal, the project purpose is to enhance the awareness, skills and knowledge available to implement successful post conflict microfinance projects for the poor.

Special recognition for SDC to its support of BASIX in India [2003-08-13]

The Swiss Development Cooperation (SDC) has obtained a special recognition in CGAP's Microfinance Donor Best Practices series, for its work with BASIX in India. Along with the Canadian International Development Agency (CIDA) and the Ford Foundation, SDC has funded BASIX from a very early stage. The success of BASIX is also due to its strong management, clear strategy and compelling business plan. A well-coordinated and appropriate mix of financing instruments enabled BASIX to develop and graduate to ever-more commercial sources of funds in the following years. Today, BASIX, a for-profit company operating in three states in India, has 41,000 credit clients, 12,000 of which also use savings and insurance products.

Microfinance Donor Best Practices series

The State of Microfinance in Central and Eastern Europe and the New Independent States [2003-08-13]

This publication presents the first in depth empirical study of the microfinance sector in Central and Eastern Europe and the New Independent States.

Download the document on the Microfinance Centre website (only Flash-based)

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