Author Archives: microfinance

BRAC launches a landmark securitization deal (BDT12.6bn, US$180mn)

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BRAC one of the largest microfinancial institutions with over 5mn borrowers and 100,000 employees has closed a landmark securitization deal structured by RSA Capital, Citigroup, FMO and KfW. This deal is denominated in Bangladesh Taka (BDT) and will provide a total of 12.6bn BDT over the course of 6 years. BRAC will receive 1bn BDT (US$15mn) financing every 6 months totalling US$180mn over 6 years. Read BRAC’s press release here
The microfinance industry continues to tap resources from the capital markets. This year 2 large CDOs were launched US$100mn by BlueOrchard Finance S.A. and a US$60mn by Development World Markets. Pure microcredit securitization deals have so far been very few.

Warren Buffet gives over $30bn to the Gates Foundation

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The biggest news this week. One of the most respected investors in the world, Warren Buffet gave the bulk of his wealth ($31bn) to Bill and Melinda Gates Foundation There is a video clip on the foundation website that covers this event which is highly recommended to watch. Just 10 days earlier Bill Gates had announced that he will be handing over his role as the chief software architect of Microsoft to concentrate on the work of his foundation. Bill Gates and Warren Buffet are taking venture philanthropy to new heights and inspiring other wealthy people to follow their formidable example. Also because of who they are the coverage of this news all over the media is reaching the whole business and financial community. The impact is unmeasurable. Thanks Warren, Bill and Melinda.

International Symposium “Realizing Property Rights” and launch of the Swiss Human Rights Book

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The International Symposium “Realizing Property Rights” and the launch of the Swiss Human Rights Book will take place at the University of Zurich on June 23rd. Hernando de Soto will be one of the main speakers. I will be speaking on microfinance and microfranchising and how this relates to property rights.

Realizing Property Rights

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“Realizing Property Rights” (Swiss Human Rights Book Volume 1) a book edited by Hernando de Soto and Francis Cheneval is now out (Publisher: Rüffer & Rub). This book deals with property rights as human rights seen from different cultural and historical contexts and from different thematic angles. It has been an honour for me to have been able to contribute a chapter for this book titled “Microcredit, MicroFranchising and Women Entrepreneurs”

Microfinance workshop at KZO (Kantonsschule Zurcher Oberland)

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On May 10th a one day microfinance workshop took place in Kantonsschule Zurcher Oberland in Wetzikon. This is an upper secondary level school in the Canton of Zurich. The 21 students who are 17-18 years old got an introduction to microfinance, performed a role play of microenterprises and MFIs and discussed about how to make viable businesses using microloans. In the first hour I introduced the concept of microfinance using 4 cases of successful microentrepreneurs I have met in the Dominican Republic, El Salvador , Guatemala, and Indonesia. The role play done by the students resulted in business plans for 1) production of Banana Beer in Tanzania, 2) sale of refurbished bicycles collected in Switzerland and sold in Romania and 3) a European style bar in a beach in the Dominican Republic. I do believe in involving the youth in changing the world… They are our hope for making the world a better place.

MicroFranchising: leveraging microfinance

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If you thought of microfinance as an effective tool to eradicate poverty you will certainly be impressed by what the next step, MicroFranchising, could achieve. MicroFranchising is in short the replication of small businesses using proven operational methods. Not everyone is an entrepreneur (not in industrialized nations nor in developing countries) but there are many people that are willing to work hard and develop their skills. MicroFranchising will not only create microentrepreneurs but sustainable businesses and employment opportunities. This subject currently brings together a lot of different organizations; NGOs, foundations, microfinance related institutions, academia, social entrepreneurs, social and private investors and MNCs. The best resources on this subjet are BYU, The Academy for Creating Enterprises (ACE) and the reports written by Kirk Magleby. In terms of successful model cases of MicroFranchising I would recommend to read about Scojo Foundation, Grameen Village Phones, and CFW shops.

85 Iraqi women participate in microfinance training (CGAP Newsflash)

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I opened my email today and saw this newsflash sent by CGAP. I find it positive and noteworthy as such efforts are very much in need in conflict areas.
“Despite power outages in Baghdad, eighty-five Iraqi women participated in the first of a series of microfinance training events on Tuesday. The World Bank Institute, Global Distance Learning Network, Middle East and North Africa region of the bank, Iraq’s Ministry of Planning, and CGAP’s regional hub in Jordan are collaborating on training Iraqi women in basic principles of microfinance. Using GDLN videoconferencing technology and CGAP materials in Arabic, a trainer based in Amman, Jordan will conduct two further workshops on May 3 and May 4. ”
Since it’s foundation in 1995 CGAP has been the resource center for the microfinance industry, the architect of the infrastructure of the industry, and is working to build inclusive financial systems.

Lots of good will

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We must be living in good times. There are certainly big problems in the world but there seems to be lots of good will or more good will then I could ever remember seeing/ hearing/feeling. People of all ages seem to be kinder and more giving now than before. They would like to within their limits give either time or money for something they believe is right. How could the world benefit from all this good will.? A website where people could easily search by location, area, project and find what they could help either with time or money could be handy. At least the new innovative companies and foundations such Kiva and globalgiving are making it easier for people to loan or give directly to projects around the world.
Another entity that sounds interesting is micromentor but I have not looked it in depth.

Promoting Microfinance and MicroFranchising

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Microfinance or “financial services to the poor” is slowly but surely getting known to the public at large.
When I started promoting microfinance to the financial circles in Zurich back in 2002 it was quite difficult to get people excited about it. That lead to me to write the book Making Sense: Microfinance & Microfinance Investments which got published in 2004 followed by the German and Japanese language publications in 2005.
In February 2006 I attended to a Microfinance conference sponsored by ING in their headquarters in Amsterdam. The topic of this conference was the role of commercial banks in microfinance. Now many banks are getting active in this field. Microfinance is becoming mainstream. Since last year I started promoting MicroFranchising along microfinance and will continue to do so in the future entries.

Making the world a better place

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If there was a phrase to summarize why I started this blog and why I have been immersed in promoting microfinance for the past 4 years and MicroFranchising for the past year is the belief that “we can make the world a better place” by collaborating and by being a bit more efficient. I truly believe that we can make a difference.
I would like to take this opportunity to thank the wonderful people that have supported me to continue on this path.
Ivo Felder, Yukari Mori, Yuko Wakamatsu, Roselly & Raphael Ramseyer, Ahmed Hakki, Bal Balaji, Isabelle Hupperts, Vincent Dominé and my parents. To all I am truly grateful.