Microfinance Focus April 30, 2011: Investment firm, Matrix Partners India recently announced closure of a $300 million second fund. With the closing of this fund the firm has $600 million under management across two funds.

The firm will continue to make early and growth stage investments of up to $30 million in companies focused on the Indian domestic market in the internet/mobile, education, financial services, and healthcare and infrastructure services sectors.

The firm currently has a portfolio of 16 companies including Muthoot Finance which recently closed its IPO offering as well as TreeHouse Education which has filed for an IPO.

Matrix Partners India is an investment firm with $600 million under management. The firm invests in companies targeting the Indian domestic market with a sector independent investment strategy focused on generating exceptional returns. The firm invests up to $30 million in a company depending on its stage of development and has invested in several category companies including Muthoot Finance Tree House Education BSFL/BASIX, Chetas Control Systems, Center for Sight, FIITJEEand Ver se Innovation amongst others. Matrix Partners has a global network of funds investing in the US, China and India with $3 billion under management.

Microfinance Media buzz brings a compilation of industry headlines broadcasted by other news media from across the world.

1. RIA: Dagestan Microfinancing Center to minor business entities wins “Citi” competition

The Republican Microfinancing Center to minor business entities has won the nomination “For successful start”. Annually the National Partnership of Microfinance Market, the Russian Microfinance Center and the Citi Foundation hold the contest “Russian Citi Foundation Award for Microenterprises”. (Read More) News Published by Republican Information Agency

2. GBN: 50 palm kennel extraction entrepreneurs receive credit facility

Daasgift Quality Foundation (DQF), a non-governmental organization, has provided GH¢15,000 micro credit facility to about 50 members of the Ahinkofi Palm Kennel Extraction Association to beef up their working capital. (Read More) News Published by Ghana Business News

3. FE: Forty years of Bangladesh economy: Triumphs and perils

The Bangladesh economy has a come a long over the past 40 years since its independence. The country has made considerable strides in different social and economic areas. It has been recording a healthy economic growth rate for the several years now. (Read More) News Published by Financial Express Bangladesh

4. BD: Private equity fund buys stake in APA for Sh1.2 billion

Private equity fund LeapFrog has bought a stake in APA Insurance in a deal that will see it inject capital and expertise to help the company offer diversified micro-insurance products. (Read More) News Published by Business Daily

5. BI: Leapfrog to invest $25M in PH

Leapfrog Investments, the world’s first micro-insurance fund, has committed to invest about $25 million in the Philippines to provide different kinds of insurance to the country’s “middle poor.” (Read More) News Published by The Inquirer

6. NI: Kenya : steady growth for micro insurance market

Kenya’s low income earners now have a wider chance of buying affordable insurance services following an investment by a private equity fund into a local insurer with the money expected to be used for research and develop of new micro insurance products. (Read More) News Published by News Insurances

7. SS: Legarda wants low-cost insurance as national policy

More than 20 million poor Filipinos have no protection against emergencies, a senator pushing micro-insurance said Wednesday. Senator Loren Legarda said the government must include micro-insurance coverage in its policies, citing data from the finance department that only 2.9 million Filipinos living in poverty have insurance. (Read More) News Published by Sun.Star

8. BD: ECA rises to $6.9bn as FG, states, LGAs share N424.6bn

The global Micro-insurance market can potentially cover up to 4 billion people through market-based risk transfer solutions and public-private partnerships. This translates into a potential premium volume of up to $40 billion. (Read More) News Published by Business Day

9. The Hindu: IT for inclusive healthcare

One of the speakers at the ‘Innovation Beyond Borders’ seminar recently organised in Chennai by the Indian Institute of Management, Bangalore, was G. Shainesh, Associate Professor of Marketing from the Institute (Read More) News Published by The Hindu

10. BD: ‘Nigeria, other foreign investors may lose grip of reinsurance in Sierra Leone’

Kortor Kamara, a Sierra Leonean insurance expert based in the US, with over 25 years’ experience in underwriting, reinsurance and risk management, shares with Modestus Anaesoronye his thoughts on why Sierra Leone should have its own reinsurance company now. (Read More) News Published by Business Day

Microfinance Media buzz brings a compilation of industry headlines broadcasted by other news media from across the world.

1. VCC: IFC To Acquire Stake In Jain Irrigation-Backed Rural Financing Firm

The project means more exposure in rural business for Jain Irrigation, one of the largest agri business players. (Read More) News Published by: VCCircle

2. DI: Lagos, Rivers, Delta lead, as CBN withdraws 224 MFB licences

Expectedly, three frontline states- Lagos, Rivers and Delta, took the lead in the list of 224 microfinance banks released at the weekend by the Central Bank of Nigeria (CBN), out of the 820 operators subjected to target examinations between February and June, 2010. (Read More) News Published by: Daily Independent

3. BG: 50 palm kennel extraction entrepreneurs receive credit facility

Daasgift Quality Foundation (DQF), a non-governmental organization, has provided GH¢15,000 micro credit facility to about 50 members of the Ahinkofi Palm Kennel Extraction Association to beef up their working capital. (Read More) News Published by: Business Ghana

4. DN: Groups feud over street vendors cash

A lobby group has dismissed as “misinformed and meant to create confusion” claims that the Sh3.8 billion meant for the informal sector had been delayed deliberately. (Read More) News Published by: Daily Nation

5. BS: HCL Infosystems gearing up for future growth opportunities

HCL Infosystems India’s premier Hardware, Services and ICT Systems Integration, Hardware and Distribution Company today announced financial results for its third quarter ended March 31st, 2011 (Read More) News Published by: Business Standard

6. BL: MFI clients in AP moot formula to repay Rs 10,000-cr loans

The clients of microfinance institutions (MFIs) in Andhra Pradesh are “willing” to repay existing loans aggregating to about Rs 10,000 crore. (Read More) News Published by: Business Line

7. JG: My Jakarta: Leonardo Kamilius, Microfinance Institution CEO

Leonardo Kamilius is not your typical 25-year-old. He went from being a business consultant at a prominent company to leading a microfinance institution that supports more than 140 small and micro-businesses in Cilincing, North Jakarta. (Read More) News Published by: Jakarta Globe

8. DH: Inclusive growth

Industry is operating in the profit cocoon that brooks no digression into anxieties such as socio-economic upheavals, displacement, etc. (Read More) News PUblished by: Deccan Herald

9. ET: Asian Development Bank lent $17.51 billion in 2010

The Asian Development Bank (ADB), today said it has approved $17.51 billion in financing operations last year to assist its developing member countries achieve their Millennium Development Goals. (Read More) News Published by: The Economic Times

10. mint: Mary Ellen | Over-regulation puts the microfinance industry at risk

MFIs should be permitted to access public deposits to manage their high costs (Read More) News Published by: Live Mint

Microfinance Focus April 29, 2011: The MasterCard Foundation and Equity Group Foundation recently launched a national program to promote financial inclusion and entrepreneurship in Kenya. The $10.9 million program will provide financial education to 6, 20,000 youth and women in Kenya over the next three years. The program aims at enabling youth and women micro-entrepreneurs to access financial services and create economic opportunities for themselves.

Equity Bank is making available up to $400 million in credit to participants who complete the program. Until now, the program has trained 57,000 people across the country and 26,000 have received credit for their business plans.

Nearly half of Kenya’s population of 38 million people lives on less than $2 a day. Forty percent of the population is unemployed and over 75 percent of those unemployed are youth. Young women face challenges with regards to accessing employment, finance and technical skills to run enterprises due to low educational attainment and societal barriers.

The program is aiming at building financial capacity through a 12-week financial education program – covering budgeting, savings, debt management, financial negotiations, and banking services. Participants will learn basic economic concepts and gain an understanding of how to use a range of financial services – such as savings, insurance and credit products. As part of this program, 7,500 participants will be selected for intensive entrepreneurship training and mentoring, and will receive practical coaching to expand their businesses.

Equity Group Foundation (EGF) aims at helping the people in Africa through initiatives in education and leadership development of young people, support of women and youth entrepreneurs, health promotion, and agriculture development.

The MasterCard Foundation advances microfinance and youth learning to promote financial inclusion. Through collaboration with partners in 40 developing countries, The MasterCard Foundation is helping people living in poverty.

Microfinance Focus April 29, 2011: IFC, a member of the World Bank Group, is supporting micro and small businesses and encouraging job creation in the West Bank and Gaza through a $3 million loan to Palestine for Credit and Development known as Faten—a microfinance institution.

As of March 31, 2011, Faten had more than 12,000 clients, of which 80 percent are women, and a total outstanding portfolio of $24 million. Through IFC, Faten plans to reach 22,000 customers and develop a net outstanding portfolio of $33 million by 2015.

IFC’s loan will help Faten expand its outreach in West Bank and Gaza, where 80 percent of employment is generated by micro, small and medium enterprises. IFC will provide its advisory services to the project in order to strengthen Faten’s operations and share international practices so that the firm can continue to serve its market. About 70 percent of the population in the Palestinian territories is under 30 years old, and 57 percent of people live below the poverty line.

An official from IFC said that despite West Bank and Gaza’s challenges, there remain plenty of enterprising people that required improved access to finance to turn their ideas into viable small businesses.

West Bank and Gaza’s unstable political and security situation over the last decade has constrained microfinance providers’ ability to secure long-term funding. Hence, only an estimated 20 percent of the territories’ microfinance needs are currently being met, despite West Bank and Gaza’s potential for growth.

Microfinance Focus April 29, 2011: MicroFinance Transparency, MFTransparency, an international non-governmental organization recently published an updated pricing data for Cambodia for 2010, building on the original dataset published in 2009.

Cambodia was one of the initial countries where MFTransparency collected true-cost microloan product pricing data and is the first country worldwide to complete the data updating process.

While any MFI reporting to MFTransparency can update its pricing data at any time, microfinance institution in all countries are required to update their data on an annual basis. Fourteen MFIs in Bosnia are currently in the process of completing their updated data submissions. Peru will be the next country to undergo the updating process.

MFTransparency will soon host a webinar where pricing experts will share the initial results of the newly available trend analysis on microloan pricing in Cambodia.

MicroFinance Transparency was founded in 2008 with the purpose of facilitating transparent markets through pricing disclosure, education and policy advisory. MFTransparency represents an industry movement toward transparent practices and responsibility. Based in the United States, the group has organized transparent pricing efforts in India, Cambodia, Bangladesh, Azerbaijan, Bosnia, Kenya, Malawi, Uganda, Rwanda, South Africa, Ghana, Senegal, Burkina Faso, Togo, Benin, Mali, Niger, Bolivia, Ecuador, Argentina, Colombia and Peru.

Microfinance Focus April 28, 2011: Citi Community Development and the Greater Dallas Hispanic Chamber of Commerce (GDHCC) recently announced partnership to open a Small Business Center of Excellence, which will serve the low- to moderate-income business community of Greater Dallas.

The Center will provide capacity-building products and services comprising of resources, training and networking support to minority owned businesses, with focus on small and medium-size business segments.

Citi and Citi Community Development are supporting this initiative with a three-year, $480,000 commitment. The GDHCC will launch a ‘needs assessment’ survey focusing on minority-owned businesses.

The Small Business Center of Excellence will provide technical assistance, consulting and educational resources to small and medium-sized businesses of Greater Dallas. This will be done by delivering services that enable the growth of successful businesses, the membership, and the business community.

In addition, the Center will provide products and services that maximize the ability of GDHCC clients to access capital, locally and globally, as well as offer procurement and workforce development opportunities. Citi will also mentor local entrepreneurs and provide training on financial products and access to credit, including the development of business packages. The Center will sponsor business development and practices sessions, where GDHCC client business owners will learn from subject matter experts and from each other.

The Greater Dallas Hispanic Chamber of Commerce (GDHCC) develops, promotes and protects Hispanic businesses in the Greater Dallas area and supports the advancement, education and economic growth of the Hispanic business community.

Citi, is a global financial services company, with approximately 200 million customer accounts and business reach in more than 160 countries and jurisdictions. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with financial products and services.

Citi Community Development (CCD) offers access to financial products and services, and builds sustainable business solutions and partnerships. Its focus areas include commercial and philanthropic funding, financial products and services; and collaborations with institutions that provide access to financial products and services for low-income and underserved communities.

Microfinance Focus April 27, 2011: Latin American development bank CAF, is offering local currency financing to Credit with Rural Education Civil Association (CRECER), an organization backing development initiatives for women from low-income sectors in rural, suburban and urban areas. Through this program, CAF will reinforce its backing for the development of microfinance sector in Bolivia.

According to the ‘Microscope’ study financed by CAF and published by The Economist Intelligence Un it (EIU), Bolivia is one the countries in Latin America with the best conditions for microfinance.

An official from CAF said that the  Latin American development bank aimed at meeting the financing needs of micro, small and medium-sized enterprises in the country by creating solutions designed for their requirements and supporting specialized institutions which, based on their financial structure, preferred local currency loans to reduce potential exchange exposure.

CAF will be implementing this facility for the first time in Bolivia and it is part of a local currency program which the institution has successfully operated in Peru for US$34 million, Mexico for US$10 million, and Colombia US$20 million.

In August 2010, CAF announced this form of financing with a Bs.35-million line of credit for the Bolivian microfinance sector to provide medium-term loans (up to 3 years) in local currency with semiannual repayments at competitive rates. The objective is to meet the needs of sectors which traditionally have limited access to credit.

Founded in 1999, CRECER provides financial and educational services to women in order that they may improve their income and general health of their family. Its portfolio currently holds over 109,000 customers organized into 9,203 community banks, operating through nine regional offices and 53 agencies, located mainly in rural and suburban areas.

Microfinance Focus April 27, 2011: The Netherlands Development Finance Company (FMO) recently signed the United Nations Principles for Responsible Investment (UNPRI).

UNPRI provides framework for investors to incorporate environmental, social and corporate governance (ESG) issues into investment decision-making and ownership practices, enabling them to align their objectives with those of society at large.

The UNPRI covers aspects such as supporting development of ESG-related tools, metrics, and analyses, developing and disclosing active ownership policy consistent with the Principles, participating in the development of policy, regulation, and standard setting (such as promoting and protecting shareholder rights), asking for standardized reporting on ESG issues (using tools such as the Global Reporting Initiative) and supporting regulatory or policy developments that enable implementation of the Principles. In addition, the principles also include working towards enhancing effectiveness in implementing the principles and reporting activities and progress towards implementing the principles.

FMO has been incorporating the ESG principles for over 40 years.  The development bank offers discounts on loans to clients who make further sustainability expansion in their businesses.

By signing the principles, FMO emphasized its commitment to fair treatment and protection of the interests of the ultimate client in inclusive finance – low-income households and small and medium enterprises.