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South African Microfinance Institution (MFI) Blue Financial Services and Nigeria’s Intercontinental Bank to Launch $25.9m Microfinance Bank
Blue Financial Services (BFS), a South African microfinance institution (MFI), and Intercontinental Bank Plc, Nigeria’s largest commercial and retail bank by assets, are collaborating to launch a Nigerian microfinance bank capitalized at NGN 3 billion (USD 25.9 million), the largest such institution in the country.

Another Microfinance Institution (MFI) Closes in Uganda as Chaos Continues in the Sector
The Support Organisation for Micro Enterprises Development (SOMED), a microfinance firm in the Kibaale District of Uganda was shut down in December last year while police claim they are investigating allegations of extortion, embezzlement and fraud. The company had been offering low-interest loans since 2004.

Recommendations for future research - Factors Impeding the Poverty Reduction Capacity of Micro-credit: Some Field Observations from Malawi and Ethiopia
In light of the conclusions drawn above, there is a need for further policy and action oriented research and in-depth investigation. First and foremost, there is a need for extensive empirical evidence to verify and ascertain the capabilities of micro-credit in reducing the depth and scope of poverty.

Concluding Remarks - Factors Impeding the Poverty Reduction Capacity of Micro-credit: Some Field Observations from Malawi and Ethiopia
One of the most important outcome of the analysis in this paper has been that while most MFI programmes aim to reduce poverty and empower women through their programme, there is usually no clear implementation mechanism to fulfil these aims; they continue to be programmes with the same requirements and characteristics.

MFI structural inconsistencies and mismatch for poverty reduction: Tenets of Micro-credit for Poverty Reduction
Micro-credit for small economic activities, excluding actual agriculture production, can be considered as a ‘quick money making business’.

Targeting women: Tenets of Micro-credit for Poverty Reduction
Is this gender consciousness?

Group Mobilisation: Tenets of Micro-credit for Poverty Reduction
Another issue arising in the discussion of targeting clients is that of group dynamics and mobilisation. One of the other features of micro-credit for the poor is the alternatives developed to collateral, namely group guarantees.

Savings Mobilisation: Tenets of Micro-credit for Poverty Reduction
One of the more common requirements of most MFIs is to encourage savings amongst the clients so that they develop an attitude of savings first and borrowing on that amount, and also to empower them, in the long term, to be independent of borrowing from external sources.

Abstract - Factors Impeding the Poverty Reduction Capacity of Micro-credit: Some Field Observations from Malawi and Ethiopia

In most African countries women tend to account for an average 51% of the population, and make up about 65% of the rural labour force. Thus, many rural based micro-finance programmes have attempted to address the women specific need for micro-credit. This paper analyses the effectiveness of micro-credit as a means to reducing poverty, with particular focus on women, and demonstrates, through the critical analysis of some country-specific examples, that the use and supply of micro-credit does not always lead to a sustainable impact on household or female poverty reduction. Analysis of findings are done based on field data, interviews, and observations from Malawi and Ethiopia.

Summary of main recommendations - Impact Study of the Zakoura Microcredit Program
In preparing the recommendations, we shall try take into account not only the results of the client surveys, on the basis of each of the five tools used, but also the ground reality of the ZMC program. In other words, the aim is to take into account what is desirable while bearing in mind what is actually feasible.

Are Small Capital Grants Worthwhile?

The MicroStart approach is to make small grants available to participating MFIs. These grants can be used to cover operating losses or to capitalize loan funds. SUM staff wanted these grants to be a way to funnel small doses of funds in a way that would not overwhelm a small and young MFI’s capacity to absorb them. Each grant has a ceiling of $150,000 and is used for either covering operating losses and/or for loan capital.

Other TSP Issues
1. Local Technical Service Provider

Summary of TSP Performance in Countries Visited
The experiences of the TSPs in each country visited during the evaluation illustrate a range of different issues.

The Art of Selecting Promising MFIs
The key question for MicroStart is whether it can equip and motivate those in charge of MFI selection to choose "small and promising" rather than "small and weak."

Measuring and managing social performance
In recent years donors and practitioners have demonstrated a renewed interest in and commitment to understanding how to reach poor people effectively, assess their level of poverty, and judge the social performance of MFIs.

Assessing social performance cost-effectively
Many MFIs have an explicit social mission that goes beyond profitability such as reducing poverty and exclusion by providing good quality, reasonably priced and sustainable financial services to poor people who are normally excluded from regular banking systems. The link between microfinance services and poverty reduction, however, is far from simple. Positive impacts cannot be taken for granted.

AfriCap Microfinance Fund Attracts Notable Investors Including Nordic MicroCap, BlueOrchard and Gray Ghost, Raises Capital to $50m
AfriCap Microfinance Fund, established in 2001 as the first African private equity fund dedicated to the microfinance industry, has closed a second round of investment, raising its capital from USD 14 million (Sh 910 million) to USD 50 million (Sh 3.25 billion).

MFI’s: A Critical Partner in Disaster Mitigation and Relief
Natural disasters are indiscriminate in their impact, but for poor communities – many of which are home to microfinance clients – the effects can be devastating.

Improving Microfinance as an Anti-Poverty Tool
As Father Joseph Philippe, the co-founder of the Haitian MFI Fonkoze, states: “You can’t just give a woman a loan and then send her on her way - you have to accompany her as she struggles to make her way out of poverty.”

Inhibitors to Success: Education
The third critical factor that prevents some borrowers from sustaining a successful business is lack of education. Most borrowers of microfinance are incurring debt and operating a business for the first time.

Kinnevik Invests $14m in African Microfinance Institution Bayport Financial Services
Investment AB Kinnevik, a Stockholm-based international investment firm, announced that it has invested USD 14 million in the African microfinance institution (MFI) Bayport Financial Services. The financing is provided as a combination of debt and equity.

Central Bank of Nigeria (CBN) Approves Conversion of Community Bank into Microfinance Institution (MFI)

The Central Bank of Nigeria (CBN) has approved the conversion of the Olabisi Onabanjo University Community Bank Limited into a microfinance bank. The community bank has operated on the campus of Olabisi Onabanjo University in Ago-Iwoye, Nigeria since March of 2003, and the majority of its shareholders are affiliated with the university. One source reports that, in its first year in business, the bank made a surplus that was “far in excess of its total paid up capital,” but no other sources were found to corroborate this information and no further information was found on the OOU Community Bank.


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