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UNITED NATIONS CAPITAL DEVELOPMENT FUND Microfinance |
Issue 16 / September 2005 |
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Links
New Publications and Websites Tool for Developing a Financial Risk Management Policy With the understanding that many microfinance institutions (MFIs) lack formal financial policies, Women's World Banking (WWB) created a tool to be used as a guide for the boards and management of MFIs. Reaching beyond advice and guidance, the tool offers sections on treasury and liquidity risk, a detailed policy design template, checklists of key policy components and a set of practical appendices, including several spreadsheets that can be tailored to suit the needs of each MFI. Used effectively, this tool can help MFIs develop effective risk management policies, help them attract capital, protect themselves from losses and instill confidence in donors, investors and rating agencies. To access the tool online, please visit: http://www.swwb.org/English/4000/wwb_publications/frm_tool.htm Microfinance in the Arab States: Building Inclusive Financial Sectors This report by the United Nations Capital Development Fund (UNCDF) provides a regional overview of the microfinance sector in areas such as market penetration, clients served, outreach, MFI performance, and financial products. Profiles of Egypt, Jordan, Lebanon, Morocco, Palestine, Syria, Tunisia and Yemen address the various challenges faced and achievements made in the microfinance sectors of each country. Read the pdf version of the report here: http://www.uncdf.org/english/microfinance/pubs/thematic_papers/UNCDF_mfArab.pdf The European Union (EU) and Group of African Caribbean and Pacific States (ACP) Microfinance Framework Programme Launches a Call for Proposals The goal of the Call for Proposals is to strengthen the institutional capacity of microfinance actors in ACP countries. The objectives of the programme are to diversifying financial services for the poor, apply technology to reduce the transaction costs of financial services, assist the expansion of outreach in underserved markets, and enhance transparency in the microfinance industry. The programme is seeking proposals from specialised organisations with an established history of supporting microfinance development and will be selected based on a variety of criteria decided by the Programme. Read more about the Call for Proposals: http://europa.eu.int/comm/europeaid/projects/acp/microfinance/call_en.htm Microfin Bulletin, Newsletter for Zimbabwe Association of Microfinance Institutions (ZAMFI) June 2005, Issue No. 1 The most recent issue of the ZAMFI Newsletter contains articles highlighting new legislation allowing for the registration of all moneylending and microfinance institutions with the Bank of Zimbabwe in the hopes of creating more ethical and incorruptible microfinance institutions, the challenges faced by clamping down on the sector, and the resulting dissolution and of many MFIs. The issue highlights the launching of an HIV/AIDS Awareness project partnership with local MFIs and new village banking projects aimed at helping poor farmers. The newsletter also addresses issues of donor drought, regulatory problems, and performance standards. Read the pdf version here: [ Microfin_Bulletin.pdf ] Migrant Remittances April 2005, vol. 2 , No. 1. In the most recent quarterly issue of Migrant Remittances, experts from the Department for International Development (DFID), United States Agency for International Development (USAID), Development Alternatives, Inc., ACCION International, and Bannock Consulting have provided their insight on technology solutions for the advancement and improvement of the market for remittances. The newsletter contains articles showcasing innovations on the retail side (mobile-phone and card-based remittance and payment services) and the backbone side (operational platforms for processing remittance transactions characterized by low value, high frequency, and currency trade). Regular features such as country profile updates, links for further research, and lists of upcoming events are also included. Download a pdf version of the newsletter: Migrant Remittances--April 2005--Vol 2 -- No 1--nospreads--4-25-UPDATE.pdf Asian Development Bank 2004 Annual Report The Asian Development Bank has included a chapter about microfinance in its 2004 Annual Report. The chapter, entitled "Special Theme: The Changing Face of the Microfinance Industry, Building Financial Systems for the Poor," details ADB's involvement in the microfinance industry as an effort to make Asia a region free from poverty by recognizing the importance of providing widespread access to financial services. The report highlights ADB's past achievements in the sector as well as the achievements of alternative financial institutions in the region. While outlining its commitment to future expansion and development of more inclusive financial services for the poor in Asia, ADB also addresses the issue of meeting future challenges in achieving the Millennium Development Goals. Download the pdf version of the report here: http://www.adb.org/Documents/Reports/Annual_Report/2004/special-theme.pdf CGAP Occasional Paper: "Crafting a Money Transfers Strategy: Guidance for Pro-Poor Financial Service Providers." Remittances have garnered much recent attention from diverse financial service providers in the private sector, governments, and development agencies. As the second largest source of funding for developing countries, remittances have a positive reputation for both their stability and counter-cyclical nature. FSP's have recognized the profitability of the money transfer market through viewing successes of institutions such as Western Union, and are developing new strategies to provide products and services to smaller communities not yet permeated by global giants. FSP's who cater to the poor have the unique opportunity in the money transfer market to both invest in profitable projects and achieve their missions. Read more about CGAP's study on how such FSPs can infiltrate this market successfully: http://www.cgap.org/docs/OccasionalPaper_10.pdf Business Times: "Poverty Reduction Strategy: Micro-finance institutions less supportive" The poverty reduction process in Tanzania has been hindered by the poor performance of microfinance institutions (MFIs) in creating more efficient and reliable micro and small enterprises (MSEs). The article is based on a study by two researchers, Severine Kessy, and Fratern Urio under the sponsorship of the Research on Poverty Alleviation Programme (REPOA) of Tanzania. They have asserted that while MSEs were created as positive forces to foster economic growth and sustainable development, after the economic downturn in the public sector within the country, lack of motivation with soft loans and entrepreneurial support has, in turn, left them in weak condition. Read more about the study here: http://www.bcstimes.com/btimes/viewnews.php?category=3&newsID=68 2005 Small Enterprise Journal (SED) on The Financing of Microfinance Every year the challenge of finding funds to finance millions of microloans requires microfinance institutions (MFIs) to tap increasingly large pools of funds and to find sources that are reliably available at an advantageous cost. Experts shared their knowledge on this critical topic in the March 2005 Small Enterprise Journal (SED) on The Financing of Microfinance, edited by ACCION International Senior Vice-President Elisabeth Rhyne. The journal contains articles on equity funds created for investing in MFIs and debt-based strategies for funding MFIs. Two of the articles on debt-based strategies describe financing that are common in mainstream finance, but are new to microfinance. Regular features such as Crossfire and book reviews are also included. Interested parties can purchase copies of the journal on the ACCION International publications website www.accion.org/pubs Regulation and Supervision of Microinsurance Microinsurance regulation is increasingly recognized as an important topic for the development of insurance services for the poor; however, the topic is still at a formative stage. GTZ's "Regulation and Supervision of Microinsurance" analyses why microinsurance regulation is important, and describes its limitations. Further, it defines key issues and proposes steps to speed up microinsurance regulation. Downloand a pdf version of the paper [ pdf ] Surviving Disasters and Supporting Recovery: A Guidebook for Microfinance Institutions The World Bank’s Hazard Management Unit, the United Nations Development Programme and the United Nations Capital Development Fund are pleased to publish Surviving Disasters and Supporting Recovery: A Guidebook for Microfinance Institutions as part of an initiative to develop mechanisms for poor households and communities to better manage disaster risk. Download a pdf version of the guidebook: [ pdf ] The Compact Quarterly The Global Compact proudly announces the launch of its new electronic publication, the Compact Quarterly. The internet newsletter will provide Global Compact participants, stakeholders and observers with a range of thought-provoking articles, interviews and updates on topics related to the Initiative, and issues regarding corporate citizenship and social responsibility. To check out the inaugural issue of Compact Quarterly, which focuses on anti-corruption efforts, climate change, and human rights, visit http://www.enewsbuilder.net/globalcompact. Be sure to read Kofi Annan’s contribution on global security, and to fill out the subscription information at the bottom of the page to receive future issues via email. Capital Markets Newsletter Practitioners, investors and rating agencies can subscribe to and contribute to this new capital markets update, created by CGAP and the Microfinance Information Exchange (the Mix). As the only publication dedicated to microfinance capital markets, this publication will be distributed to thousands of microfinance providers, investors, donors, rating agencies and consultants worldwide. The current issue, which is available at http://cgap.org/mcm/index.html, contains articles, updates and events happening in the capital markets world. To subscribe to the newsletter, send your email address to capmarkets@cgap.org .
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