Posts Tagged ‘government’

Posted on June 24, 2009 - by Gavin

MICROCAPITAL STORY: New Professional Body for the Microfinance Sector Launches in the United Kingdom

Microcapital

The Microfinance Association, a global professional body that
will cater to the needs of practitioners in the microfinance
sector, has been established in the United Kingdom. Membership in
the association is open to all practitioners working in the
microfinance sector worldwide, not just to those in the UK.

The association plans to offer its members an information center,
a career advice center, and a knowledge management center. The
information center will provide information such as links and
resources to rating agencies, market information, microfinance
news, information on government agencies, forums and conferences,
training and research, and networking opportunities.

The career advice center will provide resources such as tips on
structuring a CV, successful interviewing strategies, sample
interview questions, and a job search function. The knowledge
management center will provide research, newsletters and
publications from leaders in the industry such as CGAP,
Microfinance Insights, and the Journal of Microfinance. At the
time of this story most of these services were not yet available.

(more…)

Posted on June 23, 2009 - by Gavin

Micro-finance banks to get $8.4m grant…

Vanguard Kaduna, Nigeria, The Executive
Secretary/Chief Executive Officer of the Nigerian Investment
Promotion Commission, Alhaji Mustapha Bello, yesterday, said that
six micro-finance banks in the country will receive about $8.4
million grant this year. Bello said that the lifeline was to
address the problem of poor access to loan and equity capital
confronting micro, small and medium enterprises in Nigeria. He
spoke in Kaduna while addressing participants at the Business
Development Services Fair jointly organized by the World Bank and
the Federal Government. According to Bello, the grants awarded by
the MSME Project, a joint pilot project of the Federal Government
and the World Bank, were expected to attract over $20 million worth
of new private sector investment to the micro-finance institutions.
Bello further said that the six micro-finance banks are currently
serving over 800,000 active clients, including over 50,000 active
borrowers. “Access to finance is a significant problem for Micro,
Small and Medium Enterprises (MSMEs) in Nigeria. MSMEs have poor
access to both loan and equity capital,” he said. “To overcome
these constraints the project through its to finance component has
broadened and deepened finance provision to MSMEs through the
introduction of new financialinstitutions. “A total of $8.4million
of grants has been approved for six micro-finance banks-ACCION,
SUSU, IMFB (opened a branch in Kaduna), MIC, LFS, and Microcred
(will be operating from Kaduna)… “In this respect we recognize
the important role the MSMEs play in harnessing the forces of
economic growth to benefit the poor and have identified access to
both financial and non-financial support as critical to the growth
of NigerianMSMEs. “This is especially important as the current
global economic and financial crisis will have significant impact
onemerging economies,” he added. Earlier, the Team Leader,
WorldBank/MSME Nigeria Project, Mr. Emeka Ile said that the
projectwas working in Kaduna State with the New Nigeria Foundation
topromote rice production chain. Source:
http://www.vanguardngr.com/2009/06/19/micro-finance-banks-to-get-84m-grant/

Posted on June 17, 2009 - by Gavin

Loans To SMIs Total RM120 Billion Todate…

Bernama.com

KUALA LUMPUR, June 17 (Bernama) — A total of RM120 billion todate has been given out in loans by the country’s banking system to entrepreneurs and small traders especially in the small and medium sized industries (SMIs), the Dewan Rakyat was informed Wednesday.

Deputy Finance Minister Senator Datuk Dr Awang Adik Hussein said the loans involved 500,000 accounts which accounted for 40 percent of the RM300 billion loans allocated.

“The rate (approvals) for SMIs loans currently stands at 80 percent, which means for every 10 applications, eight are approved,” he said in reply to a question from Ahmad Kasim (PKR-Kuala Kedah) who wanted to know if the ministry kept a detailed view of the banks in keeping it easy for entrepreneurs and small traders to have access to loans.

Ahmad also wanted to know the measures taken by the ministry to ban moneylenders who took aggressive measures when recovering their money.

Awang Adek said the rise in the level of approvals for loans was largely due to the SMI Loan Guarantee Scheme introduced by the government under the economic stimulus package. (more…)

Posted on June 8, 2009 - by Gavin

Kenya’s poor embrace mobile bank…

The National

NAIROBI // Each week, Bakari Iloka sends about US$15 (Dh55) to his wife, who is raising their four children in a far-flung village in western Kenya. But Mr Iloka cannot afford a bank account and he has lost money sending it through courier services, so he sends the cash using his mobile phone.

Mr Iloka, who sells traditional medicine in a sprawling slum of corrugated metal shacks and muddy pathways, is part of a micro banking revolution that is sweeping Kenya’s slums and rural areas.

A service, called M-Pesa (“M” for mobile, and pesa is the Swahili word for money), has become the cheapest and most secure way of transferring money in Kenya.

Its popularity with the lower class has spawned similar services in other developing countries.

“Before I would send money with the bus company,” said Mr Iloka, a tall man with a bushy beard.

“Sometimes the bus would be robbed and I would lose my money. With M-Pesa, once you send it, the money is immediately there.”

Mr Iloka recently walked into an M-Pesa agent operating out of a small corrugated metal kiosk in Kibera, a slum of one million people. (more…)

Posted on June 4, 2009 - by Gavin

Our mission is to provide finance for Nigeria’s SMEs, micro enterprises –Egegele…

The Daily Sun

Even when the Nigerian economy was very buoyant, raising seed capital for startups for a typical small or medium- scale business posed so much challenge for most entrepreneurs. The enormousness of this challenge has, however, increased with dawn of the global financial meltdown as commercial bank credit is no longer easy to come by.

But as a people, Nigerians seem to have ingenious ways of handling difficult tasks and responsibilities facing them.
Today, for instance, money lenders are bracing up to the challenges of financing small businesses that commercial banks and micro finance institutions are scared to assist as entrepreneurs are now leveraging on the trade which is as old as human society to solve their funding needs.

But after seven years of financing the nation’s un-banked population, one of the operators, boasts he has the capacity to lift the nation’s micro enterprises sector with loans to make dreams of a vibrant SME a reality.

In a recent encounter with Daily Sun, Mr Frank Egegele, a Lagos-based “money lender” and managing director and chief executive of “Cash and Be Wise Company Limited,” a private limited liability outfit, that specializes in providing soft, short- term loans to entrepreneurs assured that the funding pains of Nigerian businesses are over, stressing that he was committed to bringing succour to millions of Nigerian businesses abandoned by the banks. (more…)

Posted on June 3, 2009 - by Gavin

Nigeria: N200 Billion Agricuture Loan – ‘MFBs Should Participate As Managers’…

All Africa.com

Micro Finance Banks have joined the agitation calling for more banks to be allowed to participate in the disbursement of the N200 billion earmarked for the Commercial Agric Credit Scheme.

Presently, only First Bank of Nigeria (FBN) and United Bank for Africa (UBA) have been approved as managers in the disbursement of the loan by the Central Bank of Nigeria (CBN).

Managing Director of Peace MFB Mr. Innocent Ukasoanya said that the disbursement of the loan to subsistence farmers will be facilitated through the network of more than 800 Micro finance banks spread across Nigeria “rather than the present 2 participating banks alone”.

He said that MFBs have better connections with farmers than conventional banks due to their personalised service.

“If really the motive for government is to resuscitate the agricultural sector, MFBs should be fully involved at all stages of the disbursement process”, he said. (more…)

Posted on June 2, 2009 - by Gavin

Govt scales economic growth projection to 5 p.c…

The Citizen

The economy will grow by 5 per cent this year, two per cent down from the 7.4 per cent in 2008, the minister for Finance and Economic Affairs, Mr Mustafa Mkulo, said in Dar es Salaam yesterday.

The Government had in April projected that the economy will grow by 6 per cent in 2009, down from the 7 per cent in 2008/09.

Presenting the state of the economy summary to the members of the Parliamentary Committee on Finance and Economy in Dar es Salaam yesterday, ahead of the tabling of the national budget later this month, Mr Mkulo said the revision of the economic growth projections were taken in consideration to the global economic downturn effects to Tanzania.

“Our macro-economic policy targets show that growth on various sectors will decline in 2009, but pick up again later in 2010,” he said.

Members of the committee were, however, not impressed by the minister’s explanation on local economic downturn. (more…)

Posted on May 26, 2009 - by Gavin

Taraba spends N804m on poverty alleviation…

Vangaurd Online

Jalingo — The Taraba State Government has spent about N804 million in the last two years on poverty alleviation programmes for unemployed youths.
Mr Dan Kwetako, the Commissioner for Co-operatives and Poverty Alleviation, made this known in Jalingo yesterday while speaking to newsmen.

He said N184.44 million of the amount was used in the training and equipping 1,240 youths and women in 20 different skills in the 2007 and 2008 fiscal years.

Kwetako explained that the beneficiaries were equipped with working materials that were subsidised by 50 per cent in order to make them self-employed and self-sustaining.

Similarly, the commissioner said another batch of 2,000 youths received a total of N50 million as interest-free loans under the Micro-Credit facilities of the state government.

Kwetako said to reduce transport problems in Jalingo, the government had procured and distributed taxis and buses to various categories of youths, who not only got self-employed, but also provided services to the public at the cost of N20 or N30 per drop. (more…)

Posted on May 21, 2009 - by Gavin

‘SBP, govt aim to drag poverty level below 10% by 2015’…

Daily Times

KARACHI: Deputy Governor State Bank of Pakistan Yaseen Anwar has said that the SBP and the government have been actively promoting financial inclusion to help achieve the target of reducing the level of poverty to below 10 percent by 2015.

Delivering a keynote address at the launch of World Bank’s Study on Access to Finance for the Underserved and Small Enterprises at a hotel in Karachi on Wednesday, Anwar said the financial inclusion is the core component of State Bank’s financial sector development strategy, which envisages transforming the financial market into an equitable system with efficient market-based financial services to the otherwise excluded poor and marginalized population including women and young people.

He said the State Bank of Pakistan has taken a number of measures to actively promote financial inclusion and these efforts have also been recognized by the World Bank’s Consultative Group to Assist the Poor (CGAP). The Consultative Group said that the State Bank has one of the most conducive policy and regulatory frameworks, which encourage access to financial services. (more…)

Posted on May 20, 2009 - by Gavin

WB official recommends high power tariff…

The International News

ISLAMABAD: Upward tariff adjustments for power is imperative for eliminating subsidy and bringing efficiency as without improving balance sheets power generation cannot be maximised, World Bank’s Country Director for Pakistan Yusupha B Crookes said on Tuesday.

Talking to reporters after launching a World Bank report titled ‘Access to Finance’, he commended the democratic government’s bold steps for increasing the electricity tariff, saying other South Asian countries were amazed to see the progress made by Islamabad in terms of eliminating power subsidy. Without discussing the growth figure fudging issue, in reply to a query, he said that the World Bank was ready to extend its technical and financial assistance in order to restructure the statistics agency, the Federal Bureau of Statistics.

“Without giving autonomy to DISCOs, their unbundling will not help in achieving desired results,” he said and added that the bank was working with the government for preparing an action plan to bring improvement in the power sector. (more…)

Posted on May 19, 2009 - by Gavin

MFBs not funded by FG, says Awa…

Vanguard Online

Amidst misconceptions that micro finance banks are funded by the Federal Government to take care of the financial needs of the populace, an entrepreneur and MD, Good Neighbour Micro Finance Bank, Mr Ike Awa, has debunked the notion, saying micro-finance banks (MFBs) do not receive free money from government for disbursement towards poverty alleviation rather, they source for capital like the commercial banks for their banking operations. Speaking to Vanguard, the banker called for the establishment of more MFBs as the country is under-banked, especially in the provision of banking services to small scale businesses in the informal sector which constitute about 80 percent of businesses in the country.

According to him, “Wwe don’t receive any free money from government and its agencies. We source for money like other banks do and take deposits from customers, with a percentage of such funds going as loans to customers. So, because we are entrusted with public money, we have to put in conditions that will enable us recover such money.”

On the call for consolidation in the sector, Awa described the move as unnecessary, explaining that MFBs are well managed financial institutions with several of such banks putting up stringent measures for effective management of their loans portfolios.    “Consolidation in the micro-finance sector is uncalled for. The over eight hundred MFBs existing are not enough because we are meant for the masses, especially the unbanked people who are in small scale businesses”. (more…)

Posted on May 7, 2009 - by Gavin

PostalBank launches microfinance program…

Business World Online

ILOILO CITY — The Philippine Postal Savings Bank, (PPSB) Inc. here unveiled a microfinance project for families of transport sector workers.

Alfredo Tayo III, PostalBank senior manager, said Project DRIVE (Dagdag Regular Income Via Entrepreneurship) is open to spouses and immediate family members of drivers and conductors of public utility vehicles (PUVs).

Mr. Tayo said the drivers and conductors must belong to transport cooperatives or associations that are accredited or registered with the Office of the Transportation Cooperatives (OTC) and the Land Transportation and Franchising Board (LTFRB).

Leonardo Cruz, PostalBbank first vice president, said: “The project is the government’s response to the unpredictable increase in price of oil and gas which affects the transport sector. We will provide funds for livelihood projects that the beneficiaries will propose.” (more…)

Posted on April 20, 2009 - by Gavin

Reserve Bank should ensure credit flow: Industry…

The Economic Times

NEW DELHI: India’s industry leaders feel the Reserve Bank of India (RBI) should focus more on pushing up sectoral credit disbursements, an industry lobby said.

According to a report prepared by the Associated Chambers of Commerce and Industry (Assocham), almost 92 percent of the chief executives said the RBI in its monetary policy should focus on reviving the growth momentum.

The survey, titled ‘RBI Monetary Policy Prospects’, took stock of the opinion of the industry on the economic scene and actions required to bring the Indian economy back on growth trajectory.

The participants said credit flow into sectors such as textiles, gem and jewellery and IT should be boosted.

Construction is another sector where investments need to be boosted to weather the slowdown. Most participants said this was a good time for RBI to take a re-look at the stringent regulations imposed on the real estate sector.

Though 69 percent of the respondents appreciated RBI’s efforts at reducing interest rates, most were also alarmed over the falling growth in industrial production; the index for industrial production showed a 1.2 percent decline in February. (more…)

Posted on April 6, 2009 - by Gavin

MICROCAPITAL STORY: Government of Ghana to Investigate Disbursement of Microfinance Loans to Rural Women in the Country…

Microcapital

The Ministry of Women and Children’s Affairs in Ghana will be launching an investigation into the mode of fund distribution followed by Micro-finance and Small Loans Centre (MASLOC), the country’s microfinance scheme introduced by the Government of Ghana under the administration of its former President, John Kofi Agyekum Kufuor. According to a press release on the Ghanaian news portal myjoyonline.com, the Ghanaian Ministry believes proper procedures and guidelines have not been followed in the disbursement of funds to rural women in the region and hence the need for an investigation on the mode of distribution. Speaking on the issue, Ms. Akua Sena Dansua, the Minister of Women’s and Children’s Affairs, stated that women in the Eastern Region of Ghana were yet to gain access to the funds released under the government scheme nearly six years back.

Elaborating on the breach of guidelines for disbursement of the funds, the Minister also alleged that women who were ‘not supposed to benefit from the scheme’ were granted loans while the women who were in true need of the funds were not provided any. The Minister contends that this ‘lack of diligence’ in the disbursement of funds has also resulted in a high default rate. No information on the current default rate is publicly available. Additionally, no further information on the investigation is also available.

The Micro-finance and Small Loans Centre (MASLOC) was introduced in 2004 under former President Kufuor’s administration. MASLOC was created as part of the Ghana Poverty Reduction Strategy, a policy agenda for poverty reduction and economic growth laid out by the Ghanaian government and the World Bank. The scheme was launched to administer, coordinate and monitor microcredit schemes in the country and to make sustainable financial services available to all individuals, co-operatives and other groups in grassroots communities in Ghana. (more…)

Posted on April 1, 2009 - by Gavin

Chinese Government to Legalize Private Lending & Other Recent Developments…

Wokai Adventures

The Chinese government has taken positive steps in an attempt to mitigate the effects of widespread unemployment brought on by global economic downturn.

The government has warned that this year would be “the toughest” since the turn of the century. Huge job losses in the heavily labor intensive industries, construction and manufacturing have left 20 million migrant workers without work and home, since, in many cases, their accommodation was provided by their employer, leaving them with little choice but to return back to their towns and villages across the country.

An article published in chinaview read “In a statement on its website posted Feb. 20, the PBOC — the central bank — said it would formulate regulations on private lenders and develop the sector into “a significant player” in the country’s rural money markets. It hasn’t said when the new regulations would take effect.” In effect granting it legal status, allowing private lending to occupy a legitimate place in the countries financial marketplace. (more…)

Posted on March 31, 2009 - by Gavin

State seeks partners for farm credit scheme…

The Business Daily

Kenya: The government has invited commercial banks and micro-finance institutions to partner with it in the creation of a new agricultural financing kitty to be known as the Agriculture Development Fund in an effort to boost food production.

Agriculture minister, Mr William Ruto, said the fund, which will be unveiled in June, will be used to supplement financing to farmers already provided by the Agricultural Finance Corporation (AFC).

AFC is the only exclusive farmers financing body that gives loans at subsided interest rates. But the State-owned corporation has been unable to meet the farmers’ financing needs due to increased demands mainly from small-holder farmers and its weak financial base, stemming from high default rates.

The minister said technical officers were currently working on the details to come up with the bill to form the new fund.

The government will allocate undisclosed amount of money to the new fund during the 2009/10 financial year. (more…)