Symbiotics NewsWatch #223, 14 August 2012

Aug. 14 The ‘Graduation Model’ in Microfinance The model targets the ultra-poor and initiates a multi-pronged intervention with them, typically comprising mandatory savings, a subsistence allowance, transfer of a productive asset (usually livestock), health and livelihood trainings, etc. The basic idea is to provide the ultra-poor a safety net and an opportunity to start thinking of savings and investment in some form of productive livelihood activities. Source: Livemint Aug. 13 IFMR Capital in Partnership with Asian Development Bank Structures and Arranges First Large Scale Partial Guarantee Program for MFIs in India In a first large scale partial guarantee program for microfinance institutions in India, Asian Development Bank ("ADB") has provided partial credit guarantee to loans to Microfinance Institutions (MFIs) in India. Source: Reuters Aug. 13 Microfinance Is Down, But Not Out  Microcredit should neither be credited with ending poverty on its own nor held responsible for promising more than it can deliver. It is simply one way to enable more people to participate in the capitalist system, not the magic bullet guaranteeing prosperity. In this regard, information is as essential as capital in ensuring that all parties understand and share expectations related to microcredit. Source: Huffington Post Aug. 08 IFC, Africa Capitalization Fund Investment Supports Growth and Access to Finance in Nigeria IFC, a member of the World Bank Group, and the Africa Capitalization Fund, a private equity fund managed by IFC Asset Management Company, a wholly owned subsidiary of IFC, announced today that they will together provide $70 million in convertible loans to Diamond Bank. Source: IFC Aug. 08 Africa: Gates, Gallup Data Reveals Massive Potential Mobile Money Market for the Poor  Across Africa millions are sending huge volumes of domestic remittances – mostly in cash. This data demonstrates the scope for mobile payments to expand greatly and meet the need for payment services among poor populations across Africa. Source: Next Billion Aug. 08 Azerbaijani AccessBank signs loan agreement with EBRD Azerbaijani AccessBank has signed a USD 10 million loan agreement with the European Bank for Reconstruction and Development (EBRD) for five years, AccessBank said on Wednesday. Source: Trend Aug. 08 From Micro To Small: Do MFIs Have The Capacity To Serve Small Enterprises? Many policymakers are focusing a lot of attention on small enterprises, in the hope that they could play an important role in creating much needed jobs. Also, many donors and investors view small enterprises as potential investees and engines of private sector growth. Do MFIs have a role in delivering finance to these small enterprises? Source: CGAP Microfinance Blog