At the recent launch ceremony of the fund in Nairobi, Safaricom Foundation Chairman Joseph Ogutu stated that Safaricom has committed KES 14 million (USD 133,000) toward the pilot phase of the project, which will be initiated in the counties of Nairobi, Mombasa, Nakuru, Homa Bay, Busia and Kajiado at an unspecified date. Mr Ogutu added that there is a plan to “increase the funding”[2] after the first year of operation.

By Hye In Arielle Oh, Research Associate

About Hand in Hand Eastern Africa (HiHEA)

Hand in Hand Eastern Africa (HiHEA) is a registered non-governmental organization (NGO) in Kenya that was launched in 2010. The organization is mandated by London-based Hand in Hand Global Network to operate in the Eastern Africa Region. As of 2015, HiHEA has operations in Kenya and Rwanda and the organization is working toward lifting marginalized communities out of poverty through economic and social empowerment initiatives such as job creation and enterprise development. As of 2015, HiHEA reports USD 4.3 million in loans and approximately 114,000 local entrepreneurs. As of 2015, HiHEA also reports that it has supported approximately 124,000 business ventures and created approximately 159,000 jobs.

About Junior Achievement Kenya

Junior Achievement Kenya is a non-governmental organization (NGO) and a member of the wider US-based youth network, Junior Achievement (JA), that works to equip the country’s youth with entrepreneurship and business skills. In partnership with the Ministry of Education of Kenya since 1999, the organization reports having assisted approximately 450,000 low-income young people. As of 2015, approximately 30,000 individuals annually participated in its programs.

About Safaricom Foundation

Safaricom Foundation was established by Safaricom Limited, a Kenya-based telecommunications company, in August 2003 as a registered charity. As of 2014, it reported disbursements of approximately KES 73.7 million (USD 700,100) in the country’s programs for health, KES 95.7 million (USD 909,100) for education, KES 2.6 million (USD 24,700) for environment, KES 16.4 million (USD 156,000) for economic empowerment and KES 127.4 million (USD 1.21 million) for other areas including disaster relief and water.

About Safaricom

Safaricom is a Kenya-based telecommunications company that was established in April 1997 as a private limited liability company and was converted into a public company with limited liability in May 2002. Safaricom is 35-percent owned by the Government of Kenya and 40-percent owned by the UK-based telecommunications company Vodafone. As of 2015, the company reported total assets of KES 157 billion (USD 1.49 billion), return on equity of 32.6 percent and approximately 23.4 million customers.

Sources and Additional Resources:

[1] Disrupt Africa: “Safaricom Foundation launches fund for Kenyan youth-owned startups,” http://disrupt-africa.com/2015/08/safaricom-foundation-launches-fund-for-kenyan-youth-owned-startups/

[2] The Star: “Safaricom Foundation launches a start up fund,” http://www.the-star.co.ke/news/safaricom-foundation-launches-start-fund

[3] Mediamax, “Safaricom injects Sh14M seed capital for young entrepreneurs,” http://www.mediamaxnetwork.co.ke/k24-tv/160952/safaricom-injects-sh14m-seed-capital-for-young-entrepreneurs/

[4] Hand in Hand International: “Results: Kenya,” http://www.handinhandinternational.org/results/kenya/

[5] Safaricom: “Safaricom Limited Annual Report 2014 – Social Impact,” http://www.safaricom.co.ke/annualreport_2014/public/downloads/SOCIAL%20IMPACT.pdf

[6] The Financial Times LTD 2015: “Safaricom Ltd,” http://markets.ft.com/research//Markets/Tearsheets/Financials?s=SCOM:NAI&subview=BalanceSheet&period=a

[7] Safaricom: “Annual Reports,” http://www.safaricom.co.ke/financial-updates/annual-report

MicroCapital Universe Profile: “Hand in Hand Eastern Africa,” http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Hand+in+Hand+Eastern+Africa+%28HiHEA%29

MicroCapital Universe Profile: “Junior Achievement Kenya,” http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Junior+Achievement+Kenya

MicroCapital Universe Profile: “Safaricom Foundation,” http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=safaricom+foundation

MicroCapital Universe Profile: “Safaricom,” http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Safaricom

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Once approved by the National Bank of Cambodia, the central banking authority in the country, Orix Corporation’s total shareholding in Acleda Bank will increase to 12.25 percent. This additional investment will enable Orix secure a seat in the board of directors of Acleda. The source of the newly issued shares was not disclosed.

As reported by MicroCapital at the time, Orix Corporation had acquired a 6 percent equity stake in Acleda in 2013 [2].

As of June 2015, Acelda Bank reported total assets of USD 3.6 billion, a loan portfolio of USD 2.3 billion and deposits of USD 2.28 billion. As of March 2015, Orix Corporation reported total assets of JPY 11.4 trillion (approximately USD 95 billion), return on assets of 2.8 percent and return on equity of 11.5 percent.

By Victor Mugo, Research Associate

About Acelda Bank

Acleda Bank is a public limited company based in Phnom Penh, Cambodia. It was originally founded in January 1993 as the Association of Cambodian Local Economic Development Agencies (ACLEDA), a non-governmental organization aiming to raise the standards of living of poor people by promoting economic activities ranging from self-employment to medium-sized business. It was licensed by the National Bank of Cambodia as a “specialized bank” in October 2000 and as a “commercial bank” in December 2003, when it was renamed Acleda Bank. The bank’s major shareholders include the International Finance Corporation (IFC), a member of the US-based World Bank Group; FMO, a Dutch public-private partnership that aims to promote growtg in developing economies; Kreeitanstalt für Wierderaufbau Entwicklungsbank (KFW), a state-owned development bank in Germany; Japan’s Orix Corporation; and Triodos Investment Management, a subsidiary of Dutch Triodos Bank. As of June 2015, Acleda had 256 branches in Cambodia. Acleda also works in Laos where it has 41 branches and Myanmar where it has 6 branches. As of June 2015, Acelda Bank reported total assets of USD 3.6 billion, a loan portfolio of USD 2.3 billion and deposits of USD 2.28 billion.

About Orix Corporation

Orix Corporation is a financial services provider that was founded in 1964 and is based in Tokyo, Japan. Orix offers leasing, lending, life insurance, real estate financing and development, venture capital, retail banking, and security brokering. Orix has operations in Asia, North America, North Africa and the Middle East. As of March 2015, Orix reported total assets of JPY 11.4 trillion (approximately USD 95 billion), return on assets of 2.8 percent and return on equity of 11.5 percent.

Sources and additional information

[1] Twst.com: Orix announces additional investment in the largest Cambodian Bank Acelda

https://www.twst.com/update/orix-corporation-orix-announces-additional-investment-in-the-largest-cambodian-bank-acleda/

[2] MicroCapital Brief: Orix of Japan buys 6% stake in Acleda Bank of Cambodia

http://www.microcapital.org/microcapital-brief-orix-of-japan-buys-6-stake-in-acleda-bank-of-cambodia/

[3] MicroCapital Universe:  Acleda Bank

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=acelda

[4] MicroCapital Universe: Orix Corporation

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Orix


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The selected institutions are Crédit Rural de Guinée, a microfinance institution (MFI) created by the Guinean government and the French government’s Agénce Française de Développement in 1989; The First Microfinance Institution of Syria, an MFI operating in Syria in conjunction with Switzerland’s Aga Khan Development Network since 2003; and Taytay Sa Kauswagan Inc., an MFI operating in the Philippines. The organizations are competing for a prize of EUR 100,000 (USD 111,730) to be presented by Her Royal Highness The Grand Duchess of Luxembourg during a ceremony hosted by the European Investment Bank in Luxembourg during European Microfinance Week, an annual set of working group meetings and conference sessions that begins on November 18, 2015.

Crédit Rural de Guinée was selected as a finalist based on its reaction to the Ebola virus outbreak in early 2014. It continued services by “contacting clients and processing payments by phone, rescheduling loans for affected entrepreneurs (including cancelling debt in cases of death) and continuing disbursement of new loans. Crédit Rural de Guinée also provided grants to the families of staff who were victims of Ebola” [1]. Through a partnership with the United Nations World Food Programme, Crédit Rural de Guinée continues to distribute compensation to approximately 1,000 Ebola survivors and 55,000 families affected by the crisis.

The First Microfinance Institution – Syria (FMFI-S) was selected based on its ability to operate throughout the civil war in Syria, even after its branch in the city of Homs was destroyed. FMFI-S opened two service units in Homs to continue providing microfinance services, allowing clients to “access savings and maintain loan repayments…rescheduling loans and providing a grace period of up to twelve months…and lending to new customers who had adapted their enterprises to the conflict” [1]. FMFI-S also developed new products, including loans for solar panels and rental housing payments.

Taytay Sa Kauswagen, Inc. (TSKI) was selected based on the relief it provided in the wake of Typhoon Haiyan, which damaged 46 of its 98 branches. After the storm, TSKI employees went into the field to check on clients, “while carrying aid in the form of food, goods and other relief products” [1]. TSKI granted a temporary moratorium on loan repayments for approximately 37,000 clients and disbursed 13,000 emergency loans to clients and 351 staff members that had been affected by the disaster.

Mr Romain Schneider, Luxembourg’s Minister of Development Cooperation, said that “this year’s Award is addressing the remarkable work that is being done by microfinance institutions in post-disaster, post-conflict and fragile states. Despite the challenges encountered in these very difficult environments, the Award has attracted a record number of applications of an encouragingly high standard” [1].

The European Microfinance Award was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs – Directorate for Development Cooperation and Humanitarian Affairs. It is jointly organised by Luxembourg Development Cooperation, e-MFP and the Inclusive Finance Network Luxembourg, in cooperation with the European Investment Bank. Forty-seven institutions from 28 countries submitted applications for this year’s Award.

By Meredith Steih, Research Associate

This interview is part of a sponsored series on European Microfinance Week, which is held each November by e-MFP, a 120-member network located in Luxembourg. MicroCapital will report live from the event.

About European Microfinance Platform (e-MFP)
Founded in 2006, the European Microfinance Platform (e-MFP) is a network of approximately 120 microfinance organizations and individuals that aims to promote information exchange and other forms of cooperation among European microfinance actors working in developing countries. The membership includes financial institutions, government agencies, NGOs, consultancies and universities.

Sources and Additional Resources

MicroCapital Universe Profile: European Microfinance Platform (e-MFP)

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/

By Hye In Arielle Oh, Research Associate

About Perhimpunan Baitul Maal wat Tamwil Indonesia (PBMT Indonesia)

Perhimpunan Baitul Maal wat Tamwil Indonesia (PBMT Indonesia) was established as a financial cooperative in 2005 with the responsibility of coordinating the activities of its member Baitul Maal wat Tamwil (BMTs), which are Islamic microfinance institutions (MFIs) that offer financial services to low-income individuals in Indonesia. In addition to providing capital and financial services through microfinance, PBMT Indonesia also aims to raise education levels, improve health care, enhance skills and competencies of microentrepreneurs and develop social programs. As of 2015, PBMT reported total cumulated assets of USD 800 million, a membership base of 2.2 million, 150 member BMTs and 550 branches in Indonesia.

Sources and Additional Resources:

[1] Global Indonesia Voice: “Empowering the Poor through Islamic Microfinance,” http://www.globalindonesianvoices.com/21892/empowering-the-poor-through-islamic-microfinance/

[2] Asian Venture Philanthropy Network: “PBMT Social Ventures,” http://avpn.asia/organisation/pbmt-social-ventures/

[3] PBMT Social Ventures: “Background,” http://pbmtsv.com/about-us/background/

MicroCapital Universe Profile: “Perhimpunan Baitul Maal wat Tamwil Indonesia (PBMT Indonesia),” http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Perhimpunan+Baitul+Maal%C2%A0wat+Tamwil+Indonesia+%28PBMT+Indonesia%29

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/

In a statement, Kiva Senior Director Jonny Price cites a declining repayment rate and operational challenges as reasons for the decision to end the program. These include “delays in both loan disbursal and repayment processing [that have] kept borrowers waiting for loans and lenders waiting on notification of repayment” [1].

As of September 16, Kiva Zip has stopped disbursing direct loans to borrowers in Kenya, and the organization will refund loans from website users that are currently in the fundraising stage. Kiva Zip will continue to collect repayments on loans and will return these funds to lenders throughout the rest of 2015 “as they are received” [1]. The US operations of Kiva Zip will continue. From 2005 through 2015, Kiva raised funds totaling USD 755 million that have been disbursed by 269 MFIs and similar organizations in 83 countries, with a reported 98.6 percent repayment rate.

By Meredith Steih, Research Associate

About Kiva
Kiva is a US-based, nonprofit online portal that was established in San Francisco in 2005. It allows individuals to make loans to microfinance institutions (MFIs) to backfill loans that the MFIs have made to low-income borrowers. In 2012, Kiva launched a pilot platform, Kiva Zip, enabling users to lend directly to microentrepreneurs in Kenya and the United States. The Kenyan operations of the Kiva Zip program are closing as of 2015. From 2005 through 2015, Kiva raised funds totaling USD 755 million that have been disbursed by 269 MFIs and similar organizations in 83 countries, with a reported 98.6 percent repayment rate.

Sources and Additional Resources

[1] Email contact with Kiva

MicroCapital Universe Profile: Kiva

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/

The credit package will include two transactions: a term loan of USD 11 million that will be on-lent to micro-, small and medium-sized enterprises (MSMEs) and a trade finance line of USD 2 million that will allow Optima Bank to support its corporate borrowers to become involved in international commercial transactions. The fact that the credit facility will be denominated in local currency allocates currency risk to EBRD rather than Optima Bank or its customers. It is anticipated that EBRD will also extend a risk-sharing facility of USD 20 million to Optima Bank at an unspecified date.

As of year-end 2013, Optima Bank reported total assets of KGS 15 billion (approximately USD 212.8 million), a gross loan portfolio of KGS 2.5 billion (approximately USD 35.4 million) and deposits of KGS 2.3 billion (approximately USD 32.6 million). EBRD invested EUR 8.9 billion (approximately USD 10.1 billion) in 377 projects in 34 countries during 2014, and as of December of that year, it reported total members’ equity of EUR 14.2 billion (approximately USD 16.1 billion). In Krygyzstan, EBRD aims to strengthen the export sector by facilitating economic and trade cooperation of the country within the region, facilitate the access to credit of MSMEs and promote the “sustainability of public utilities”[2].

By Victor Mugo, Research Associate

About Optima Bank

Optima Bank (formerly known as Kyrgyz Commercial Bank for Business, Kyrgyz Commercial Bank for Reconstruction and Development of Energy and ATF Bank – Kyrgyzstan) was founded in 1992 and is headquartered in Bishkek, Krygyzstan. The bank has 13 branches and offers deposit accounts; private banking services; and loans for housing consumption, rural development and small and medium-sized enterprises. As of year-end 2013, the bank reported total assets of KGS 15 billion (approximately USD 212.8 million), a gross loan portfolio of KGS 2.5 billion (approximately USD 35.4 million) and deposits of KGS 2.3 billion (approximately USD 32.6 million).

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and is owned by 64 countries as well as the European Investment Bank and the European Union as of 2015. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). EBRD invested EUR 8.9 billion (approximately USD 10.1 billion) in 377 projects in 34 countries during 2014, and as of December of that year, it reported total members’ equity of EUR 14.2 billion (approximately USD 16.1 billion).

Sources and additional resources

[1] EBRD.com: EBRD re-engages with Optima Bank in Kyrgyz Republic to support small business and trade

http://www.ebrd.com/cs/Satellite?c=Content&cid=1395246358842&d=Mobile&pagename=EBRD%2FContent%2FContentLayout

[2] EBRD.com: EBRD in Krygyzstan
http://www.ebrd.com/cs/Satellite?c=Content&cid=1395237749591&d=Mobile&pagename=EBRD%2FContent%2FContentLayout


[3] MicroCapital Universe: European Bank for Reconstruction and Development (EBRD)
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29


[4] MicroCapital Universe: Optima Bank
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=optima


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U Toe Aung Myint, the Permanent Secretary of the Ministry of Commerce of Myanmar, said that “the Ministry of Commerce is pleased to sign the memorandum of understanding with IFC to support our efforts to promote trade, business and investment”[1].

As of June 2015, IFC had 184 member countries and total assets of USD 87.5 billion, net annual income of USD 445 million and return on assets of 0.5 percent. IFC has sought to foster sustainable economic growth in Myanmar by financing and mobilizing capital for private sector projects in the energy, tourism and telecommunications sectors. As of June 2015, IFC’s investment portfolio in Myanmar totalled approximately USD 400 million[2].

By Victor Mugo, Research Associate

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development financial institution and member of the World Bank Group, offers loans, equity investments, advisory, and risk mitigation services and technical assistance to private companies with the intention of alleviating poverty and promoting open and competitive markets in developing countries. As of June 2015, IFC had 184 member countries that drive its policies and approve disbursements. Also as of the same date, the organization reported total assets of USD 87.5 billion, net annual income of USD 445 million and return on assets of 0.5 percent.

Sources and additional resources

[1] Finchannel: IFC supports Myanmar’s business regulatory reforms to improve investment climate

http://finchannel.com/index.php/business/item/45598-ifc-supports-myanmar-s-business-regulatory-reforms-to-improve-investment-climate

[2] Reuters: IFC Myanmar investment to rise to USD 1billion

http://mobile.reuters.com/article/idUSL3N0TW3RK2014121

[3] MicroCapital Universe Profile: International Finance Corporation (IFC)

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29


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The first project of the partnership is planned for an unspecified date in the Kakuma refugee camp in Turkana County, Kenya. As of 2015, 170,000 refugees reside in Kakuma after having fled from violence in neighboring countries. The refugees will be supplied with prepaid cards permitting them to buy charcoal that has been produced locally “in a sustainable, environmentally-friendly way”[2]. This aims to increase the incomes of local residents of Turkana, thereby reducing tensions between the residents and the refugees. MasterCard also plans to contribute improved charcoal-making kilns to 1,240 local households and energy-efficient stoves to 7,000 refugee households. These households are also to receive credit for 25 percent of their annual charcoal purchases [2].

As of June 2015, MasterCard reported total assets of USD 15.3 billion and 2.2 billion payment cards in circulation. As of 2014, FAO reported total assets of USD 5.15 million.

By Hye In Arielle Oh, Research Associate

About United Nations Food and Agriculture Organization (FAO)

Headquartered in Rome, Italy, the Food and Agriculture Organization (FAO) is an agency of the United Nations (UN) that engages in “sustainable management” of natural resources, the elimination of poverty and the eradication of hunger. As of 2015, its members include the European Union (EU), Faroe Islands, Tokelau and 194 member nations. As of 2014, FAO reported total assets of USD 5.15 million.

About MasterCard

Headquartered in the US city of Purchase, New York, MasterCard is a payments and technology company that connects consumers, financial institutions, merchants and governments in approximately 210 countries and territories. As of June 2015, MasterCard reported total assets of USD 15.3 billion and 2.2 billion payment cards in circulation.

Sources and Additional Resources:

[1] Food and Agriculture Organization of the United Nations: “About FAO,” http://www.fao.org/about/en/

[2] MasterCard: “FAO and MasterCard Announce New Partnership,” http://newsroom.mastercard.com/press-releases/fao-and-mastercard-announce-new-partnership/#prclt-KiV5I11Q

[3] Food and Agriculture Organization of the United Nations: “Audited Annual Accounts, 2014,” http://www.fao.org/3/a-mn359e.pdf

[4] MasterCard: “MasterCard Incorporated Reports Second-Quarter 2015 Financial Results,” http://investor.mastercard.com/investor-relations/investor-news/press-release-details/2015/MasterCard-Incorporated-Reports-Second-Quarter-2015-Financial-Results/default.aspx

MicroCapital Universe Profile: “MasterCard,” http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard

MicroCapital Universe Profile: “United Nations Food and Agriculture Organization (FAO),” http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Nations+Food+and+Agriculture+Organization

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/

Edvardas Bumsteinas: My interest in microfinance began with a summer job some 20 years ago when I was a student at the London School of Economics. At the request of Lithuania’s Open Society Institute, I spent one of my summers helping to set up external financing facilities for the Lithuanian Credit Union’s network. During my meetings with staff members and clients, I was impressed with positive results that those member-owned financial institutions were having in their communities.

MC: In reading about the European Investment Bank (EIB)-funded Microfinance in Crisis project, I was struck by the language “The main thing is to make the system user-centric, not provider-centric, and to consider microfinance (and more broadly finance) as a common good.”

EB: The main outcome of the study will be a “delinquency crisis prevention dashboard,” which can be used to identify the factors that are likely to lead to a microcredit repayment crisis. The concept of “common good” should be seen in a broader context of building inclusive and sustainable financial systems. In the past, the main emphasis was placed on the (financial) sustainability of microfinance institutions. On the other hand, the actual needs and constraints of the final beneficiaries remained poorly understood and largely overlooked by the microfinance community. The end result was a backlash against microfinance providers in countries such as India and Nicaragua. Since then, much more attention is being paid to financial inclusion as an ecosystem in which customers occupy a central place.

MC: Why should our readers be sure to attend the 2015 European Microfinance Week this November?

EB: This year’s European Microfinance Week coincides with Luxembourg holding the EU Presidency. Since financial inclusion is one of the topics traditionally promoted by the government of Luxembourg, I would expect that the 2015 European Microfinance Week will be one of the largest and busiest ever (last year it welcomed 400 participants!). In addition, EIB will host the Sixth European Microfinance Award ceremony, which will recognize the work of microfinance institutions operating in post-disaster, post-conflict areas and fragile states. We anticipate the presence of HRH Grand Duchess of Luxembourg along with other prominent public personalities. I also am looking forward to welcoming the readers of MicroCapital in Luxembourg this November! For more information, please see the following website:
http://www.e-mfp.eu/european-microfinance-week-2015/information.

Edvardas Bumsteinas serves as the head of the microfinance unit of the European Investment Bank. While the dashboard should become operational by December, the research programme already has produced a number of research and policy briefs that can be found at: http://www.microfinance-in-crisis.org/resources/.

This interview is part of a sponsored series on European Microfinance Week, which is held each November by e-MFP, a 120-member network located in Luxembourg. MicroCapital will report live from the event.

The funds will be used to “long-term” investments in microfinance institutions (MFIs) for on-lending to micro-, small and medium-sized enterprises (MSMEs) as well as to low-income households in order to facilitate the purchase and modernization of housing in Eastern and Southeastern Europe.

As of year-end 2014, Deutsche Bank reported assets totaling EUR 1.71 trillion (USD 1.9 trillion). Deutsche Bank has mobilized approximately EUR 250 million (approximately USD 278 million) for EFSE since 2007. As of 2014, EFSE reported a gross loan portfolio of EUR 940.5 million (approximately USD 1 billion).

By Victor Mugo, Research Associate

About European Fund for Southeast Europe (EFSE)

The Luxembourg-based European Fund for Southeast Europe (EFSE) focuses on the development of local financial sectors in Southeastern Europe and parts of Central Asia. EFSE provides “long-term” funding for micro- and small enterprises as well as private households via partner retail institutions. EFSE also operates the EFSE Development Facility, which provides technical assistance, consulting and training services supporting capacity building within these partner institutions. EFSE was established in 2005 by Germany’s Kreditanstalt für Wiederaufbau (KfW), with the financial support of the German Federal Ministry for Economic Cooperation and Development (which is also known by its German acronym BMZ) and the EU’s European Commission. The fund is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. EFSE operates in 16 countries: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Kosovo, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey, the former Yugoslav Republic of Macedonia. As of 2014, EFSE reported a gross loan portfolio of EUR 940.5 million (approximately USD 1 billion). As of September 2014, EFSE holds a microfinance label from Luxembourg Fund Labeling Agency (LuxFLAG), an NGO that certifies that social investment vehicles actually invest as advertised.

About Deutsche Bank

Deutsche Bank was founded in 1870 in Berlin, Germany. As of 2015, the organisation is present in 70 countries, and it is headquartered in Frankfurt, Germany. It offers financial products and services including consumer banking, corporate banking, insurance, investment banking, mortgage loans, private banking, private equity, savings, asset management and wealth management. The bank also offers services including mergers and acquisitions, fund management, risk management through derivatives and origination, and sales of debt and equity for corporate and institutional clients. As of year-end 2014, Deutsche Bank had assets totaling EUR 1.71 trillion (USD 1.9 trillion).

Sources and additional resources

[1] Noodls: Deutsche Bank adds funding to EFSE microfinance fund http://www.noodls.com/view/B77B65FE579EBC3F41B857EA590D6513AC30C3E5?1308xxx1440682282

[2] MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE) http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29

[3] MicroCapital Universe Profile: Deutsche Bank http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Deutsche+Bank

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/