By Anayo Onukwugha, Leadership The Nigeria Deposit Insurance Corporation (NDIC) has said that about 76.8 per cent of rural dwellers in Nigeria do not patronise financial institutions, especially commercial and micro-finance banks in the country. Managing Director of NDIC, Alhaji Umaru Ibrahim, disclosed this yesterday in Port Harcourt during the opening...
By Providence Obuh, Vanguard The Nigerian Deposit Insurance Corporation (NDIC) has tasked operators of microfinance banks in the country to improve on premium rendition to it. Managing Director of the corporation, Alhaji Umaru Ibrahim made the call during the MfB operators’ workshop in Abuja, the first in six series to hold in other states including...
By Nazifi Dawud Khalid, Daily Trust Kano — The Nigeria Deposit Insurance Corporation (NDIC) has announced its decision to publish names of people who were operating dubious and unlicensed financial institutions called ‘wonder banks’ that promise hefty monetary rewards for customers who make deposits in their banks with the intent to...
Ghana Post and Star Microinsurance services have collaboratively launched a new product for low income earners called Abusua Nkyemfa. Launched in Accra on Friday, 14th June, 2013 at the head office of Ghana Post, the agreement spells out that Ghana Post is to provide counter space and supervisors at selected post offices to sell insurance policies...
Ghana Post and Star Microinsurance services have collaboratively launched a new product for low income earners called Abusua Nkyemfa.
Launched in Accra on Friday, 14th June, 2013 at the head office of Ghana Post, the agreement spells out that Ghana Post is to provide counter space and supervisors at selected post offices to sell insurance policies to Star Microinsurance clients. The latter will also have the primary responsibility to administrate the policies.
According to Communications Minister Dr Edward Omane Boamah, in an address read on his behalf by Mrs. Charlotte Morgan-Asiedu, Director of Human Resource and Development of the Ministry, the advent of new and emerging technologies, sets the stage for Ghana Post to take advantage of opportunities to re-assess itself as a major player and promoter of economic development of the country.
He noted that “Strategic partnerships focus on developing external relationships that will lead to new business development and collaborative will to bring an instant competitive advantage to businesses to expand into new markets.
“The ministry will provide the necessary support that will upgrade Ghana Post to the level of an effective development tool for rendering service to the entire polulace”, he assured.
The Managing Director of Ghana Post, Mr. Abdulai Rafui also stated that “In the last couple of years, the company has been making strategic moves aimed at transforming its fortunes, despite stiff competition and the introduction of technology into postal operations.
One of such moves, he noted, is the formation of “partnerships and alliances to move our business forward. It is under this score that Ghana Post is collaborating with Star Microinsurance Company for the provision of microinsurance products to the low income group of our society”.
On her part, the Executive Director of Star Microinsurance, Afua Boahemaa Donkor said, ” Microinsurance is insurance that caters to the needs of the informal sector. Unlike the traditional insurance, Microinsurance provides affordable premiums which are collected more frequently and distributed through a variety of channels that are accessible to the informal sector”.
“Today, we are here to launch a New Partnership between Ghana Post and Star Microinsurance Services Ltd. For us to enter into a partnership we look out for certain qualities;
1. Infrastructural reach of the proposed partner
2. Availability of a good payment platform
3. And their Operational ability
Star Microinsurance recognized all these three essential qualities in Ghana Post which has about 350 offices across the country and 300 agencies creating a massive network.
They have a unique payment platform, the cash post, which has nationwide acess; they also have partnered with other organizations making their experience in working with other third parties a rich one”, the Executive Director added.
The short but impressive ceremony was chaired by Mr. Oppong Yeboah, Executive Vice Chairman of Star Life Assurance. In attendance were Mr. George Addison, Managing Director of Star Life Assurance, Mr. Nicholas N.Y. Dery, Director-Postal Policy of the Ministry of Communications and other high profile officials from the two organizations and business partners.
By Mohammed Awad, Bikya News ADDIS ABABA: Ethiopia women are praising efforts over the past month to increase their empowerment within the business sector of the country. In recent weeks, Ethiopian women have been able to increase their living by applying for loans at a nationwide bank launched by women for women. “Without the new loan I have...
By Mohammed Awad, Bikya News
ADDIS ABABA: Ethiopia women are praising efforts over the past month to increase their empowerment within the business sector of the country. In recent weeks, Ethiopian women have been able to increase their living by applying for loans at a nationwide bank launched by women for women.
“Without the new loan I have got in the past few weeks, I would not have been able to start the process of creating my own medical clinic in the village,” Hallelujah Desalign told Bikyanews.com. She recently established a small clinic about an hour outside Addis Ababa that gives women pre-natal care and children now have access to daily healthcare and medicine.
“It’s all because of the banking system and how women are helping women out,” she added.
She was referring to last month’s launch of a bank pushed by 11 Ethiopian women and some 7400 shareholders with the aim to serve and support women and empowerment in the country.
“This is a great time for women in Ethiopia,” an economic consultant for the government told Bikyanews.com. “We are seeing initiatives that are helping to make better business opportunities for women and this will help boost our overall economy.”
Meaza Ashenafi, Chairperson of Bank Board of Directors, told reporters that 64 percent of the shareholders are women.
Meaza revealed that the Bank has been launched with initial capital of 120 million Ethiopian Birr (about 18.5 Ethiopia Birr equals 1 US dollar), to be raised to 500 million Ethiopian Birr in two years time.
The Chairperson noted that it is women’s initiative potentially to be one of the biggest banks in Ethiopia.
The bank launched its services with two branches in Bole and Bambis areas of Addis Ababa.
The Chairperson stated that they would expand the bank’s services by opening other branches in different parts of the country and also by using mobile bank.
“We have launched the bank, the first women’s bank in the country; and potentially be one of the biggest banks in Ethiopia. It is women’s initiative. It was promoted by eleven Ethiopian women and we have over 7,000 shareholders,” she said.
She said they wanted to use mobile bank as it has huge potential to reach all.
Speaking at the launching ceremony, Mekonnen Manyazewal, Ethiopian’s minister of trade, noted that the bank initiated by Ethiopian women would have its contribution to development activities in the country.
The bank has said that it provides bank services uniquely in a manner it improves citizens’ saving culture and loan services that promotes investment in the country.-->
LANCASTER, PA USA & NAIROBI, KENYA June 18th, 2013 – MFTransparency, in partnership with Planet Rating and under the sponsorship of the Agence Française de Développement (AFD), will host the second African Microfinance Pricing Transparency Leadership Forum in Nairobi, Kenya from June 18th – 19th 2013. The event will bring together leading...
LANCASTER, PA USA & NAIROBI, KENYA June 18th, 2013 – MFTransparency, in partnership with Planet Rating and under the sponsorship of the Agence Française de Développement (AFD), will host the second African Microfinance Pricing Transparency Leadership Forum in Nairobi, Kenya from June 18th – 19th 2013. The event will bring together leading regulator, policymakers, and microfinance experts with the objective of facilitating the development and implementation of pricing disclosure policies for African microfinance markets. Ms. Caroline Rozières, Microfinance Investment Officer at AFD in Paris, and Mr. Chuck Waterfield, Chief Executive Officer (CEO) of MFTransparency, will be making the opening remarks for the forum.
The second African Microfinance Pricing Transparency Leadership Forum will build on the previous event, which took place in October 2011 in Nairobi, Kenya, and shall provide policymakers and regulators with the opportunity to provide feedback on new developments in their markets and exchange their experiences in facilitating client protection and pricing disclosure in the microfinance industry. The regulators and policy makers attending this forum represent 7 African countries, as well as a range of experts from other regions.
The content of the forum includes:
• Training on pricing transparency calculations and pricing disclosure policy development
• Working sessions under the theme of policies for improve pricing and stakeholder decision- making, including means of constraining lenders (through truth-in-lending approaches and interest rate caps) and the different means of communication to the client and to the market
• Working group exercises for applying the knowledge generated from the event to the development of pricing disclosure policy
The African Microfinance Pricing Transparency Leadership Forum is organized by a Steering Committee composed of representatives of MFTransparency, AFD, AFMIN, CGAP and UNCDF.
“Transparent and comparable pricing is key to the protection of microfinance clients,” said Yves Boudot, Director of AFD’s Sub-Saharan Africa Department. “This Forum constitutes a unique opportunity for African Microfinance Leaders to exchange experiences and develop policies for transparent pricing disclosure in their local markets. It will help to build standards for the African microfinance industry and for donors committed to fostering responsible practices in microfinance.”
Emmanuelle Javoy, Managing Director of Planet Rating, commented “The detailed and standardized microcredit pricing data gathered by MTTransparency in partnership with Planet Rating finally allows having a clear picture of the current pricing structure of microfinance market across Sub-Saharan Africa. This very rich database is a gold mine for anyone who wants to help microfinance move towards more transparency. It can notably be used by regulators at the time of creating or updating Truth-in-Lending legislations adapted to the realities of microfinance.”
Chuck Waterfield commented “Our first conference with the same group of regulators generated both a higher level of understanding of the complexities of pricing in microfinance and a great deal of interest in how to shape legislation to fix market flaws and make the microfinance market work more smoothly and transparently. This follow-up event will assist legislators as they move forward in that process.”
The African Microfinance Pricing Transparency Leadership Forum is part of a larger MFTransparency initiative, also funded by AFD, called the African Regulator Project. Through this project, MFTransparency seeks a lasting impact on the policy and practice of pricing disclosure and client protection in microfinance in Africa. Our goal is to work with policymakers and regulators so that the interests of different stakeholder groups, including clients, financial institutions and funders, are met in a resilient and transparent microfinance industry.
The second African Microfinance Pricing Transparency Leadership Forum is a closed event, attendance is by invitation only.
About Agence Française de Développement (AFD)
The Agence Française de Développement (AFD) is a public development finance institution that has been working to fight poverty and foster economic growth in developing countries and the French Overseas Communities for seventy years. It executes the policy defined by the French Government.
AFD is present on four continents where it has an international network of seventy agencies and representation offices, including nine in the French Overseas Communities and one in Brussels. It finances and supports projects that improve people’s living conditions, promote economic growth and protect the planet, such as schooling for children, maternal health, support for farmers and small businesses, water supply, tropical forest preservation, financial inclusion and the fight against climate change.
In 2012, AFD approved €7 billion to finance activities in developing countries and the French Overseas Communities. The funds will help get 10 million children into primary school and 3 million into secondary school; they will also improve drinking water supply for 1.79 million people. Energy efficiency projects financed by AFD in 2012 will save nearly 3.6 million tons of carbon dioxide emissions annually.
About Planet Rating
Paris-based Planet Rating is a global rating agency specialized in microfinance, focused on providing all microfinance stakeholders with the information they need for sound growth of the sector. Founded in 1999, Planet Rating has provided more than 650 financial and social ratings of MFIs, playing a vital role in professionalizing the sector for over a decade. Planet Rating provides high quality and unbiased rating reports, and offers a global geographic coverage through its six offices located in Paris, Lima, Dakar, Nairobi, Beirut, and Manila. For more information on Planet Rating, please visit www.planetrating.com.
About MicroFinance Transparency
MicroFinance Transparency (MFTransparency) is an international non-governmental organization founded in 2008 with the purpose of facilitating transparent markets through pricing disclosure, education and policy advisory. MFTransparency represents an industry movement toward transparent practices and responsible microfinance. Based in the United States, the group has organized transparent pricing efforts in 29 countries on four continents. Grameen Bank’s Dr. Muhammad Yunus and Elizabeth Littlefield, former CEO of CGAP, as well as over 1000 industry professionals and organizations have committed to transparent pricing by endorsing MFTransparency and its initiative. For more information on MFTransparency, please visit www.mftransparency.org.
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SIEM REAP, Cambodia, June 14, 2013 /PRNewswire/ – Social investor and worldwide cooperative, Oikocredit, today released its social performance results for 2012 at the annual general meeting in Cambodia. The social results reflect data reported to Oikocredit by over 634 organizations, reaffirming the commitment of Oikocredit’s partners...
SIEM REAP, Cambodia, June 14, 2013 /PRNewswire/ –
Social investor and worldwide cooperative, Oikocredit, today released its social performance results for 2012 at the annual general meeting in Cambodia. The social results reflect data reported to Oikocredit by over 634 organizations, reaffirming the commitment of Oikocredit’s partners to social goals and performance.
At 31 December 2012, Oikocredit’s development financing portfolio was € 530 million, with € 420 million invested in microfinance and the remainder in social enterprises including fair trade and agricultural cooperatives.
Through Oikocredit’s microfinance partners, 28 million people were reached in 2012, an increase of 11% from 2011. Of the total number of microfinance borrowers, 24% were agricultural, 56% lived in rural areas and 84% were women.
The social performance results showed that 59% of microfinance partners endorsed the client protection principles in 2012, up from 50% the previous year. During 2012, 38 partners began using the Progress out of Poverty Index, taking total number of Oikocredit partners using the tool to 70.
Positive social results
Oikocredit director social performance, Ms Ging Ledesma, said the results were positive, showing the continued commitment of Oikocredit’s partners to client welfare.
“The data clearly shows that our partners are reaching their target clients and more are implementing industry tools that guarantee improved outcomes for clients,” Ms Ledesma said.
Throughout 2012, Oikocredit funded over 100 capacity building initiatives and began the second phase of its social performance mentoring programme for microfinance institutions. During the year, the programme spanned six countries and will be developed in another four countries in 2013.
Microfinance institutions involved in this programme have reported changes in policies, operations and improvements in key result areas such as outreach and portfolio at risk.
In the coming year, Oikocredit will continue its social performance management strategy in selecting new partners as well as assisting existing partners to build capacity and perform both financially and socially.
Oikocredit will continue its strategic focus on Africa, agriculture and inclusive finance in 2013, as well as measuring, monitoring and reporting outcomes at client levels.
Ms Ledesma said avoiding client over-indebtedness and maintaining responsible returns and interest rates charged by partners will continue to be closely monitored.
“With Oikocredit reaching more partners and countries than other privately funded investors in the microfinance sector, we look forward to bringing partners together to share best practices,” added Ms Ledesma.
Oikocredit is one of the world’s largest sources of private funding to the microfinance sector, providing credit and equity to small businesses through microfinance institutions across the developing world and directly to trade cooperatives, fair trade organizations and small to medium enterprises.
Mr Olufemi Babajide, Chairman, South-West Chapter of the National Association of Microfinance Banks (NAMBs), on Tuesday expressed concern over the inadequate funding of the Nigeria Incentive-based Risk Sharing for Agricultural Lending (NIRSAL) programme. Babajide, who expressed the concern in an interview with the News Agency of Nigeria (NAN)...
Mr Olufemi Babajide, Chairman, South-West Chapter of the National Association of Microfinance Banks (NAMBs), on Tuesday expressed concern over the inadequate funding of the Nigeria Incentive-based Risk Sharing for Agricultural Lending (NIRSAL) programme.
Babajide, who expressed the concern in an interview with the News Agency of Nigeria (NAN) in Lagos on Tuesday, said that the designated microfinance banks were unable to access the N75 billion NIRSAL agricultural intervention funds.
According to Babajide, NIRSAL stipulates that the microfinance banks should provide the funds for the farmers and later sought for refinancing from the Central Bank of Nigeria (CBN).
Babajide said that the microfinance sub-sector was not financially buoyant to provide such huge financial services to the farmers.
“NIRSAL is saying we should provide the funds for the farmers then we now seek a refinancing but we don’t have that kind of money. That’s the truth.
“We have MFBs that have about 10,000 farmers that have opened account with them. CBN is saying give all of them money.
“If 10,000 farmers opened account with a microfinance bank and they need N100,000 each, that’s one billion. They say we should go and give them, then we now come for reimbursement.
“Is that practicable? So all the hopes we had that this thing would take off successfully had been dashed.“
Babajide said that the plan was that the project would commence in the first quarter of 2013 when farmers would begin farming for the season.
He said that the association proposed that the farmers should provide 10 per cent of whatever amount they intend to borrow from the microfinance banks.
Babajide said that the association would provide 15 per cent of the funds, while the CBN would provide 75 per cent.
“This NIRSAL programme ought to have taken off in the first quarter of the year so that we disburse loan to farmers for the planting season.
“So, the plan last year was that by first quarter, we would disburse funds to the farmers. Now, we cannot do that; the reason being that we don’t have money.
“So what we propose is that let the farmers put down 10 per cent, we will add 15 per cent, then they should give us 75 per cent so that we can give the farmers.
“For instance, if a farmer needs N100,000, the farmer would provide N10,000, we would provide N15, 000, let CBN give us N75,000, then we give the N100,000 to the farmers.“
The World Bank Group has chosen Thrissur-based ESAF Microfinance as one of the 20 beneficiaries for executing its India Development Marketplace initiative. The initiative is aimed at scaling up innovative business models in the target States of Madhya Pradesh, Chhattisgarh and Jharkhand. CAPACITY BUILDING ESAF Microfinance was among the 200 organisations...
June 12, 2013 by Microfinance Africa
Another credit union network named Renaissance Cooperative Credit Unions, RECCU-Cam Ltd now exists in Bamenda, North West regional chief town, according to a local English language newspaper, the SUN. It was officially registered on May 30, 2013 but its constituent assembly held earlier in Bamenda on Saturday May 11. However, the league is still...
Another credit union network named Renaissance Cooperative Credit Unions, RECCU-Cam Ltd now exists in Bamenda, North West regional chief town, according to a local English language newspaper, the SUN.
It was officially registered on May 30, 2013 but its constituent assembly held earlier in Bamenda on Saturday May 11.
However, the league is still waiting for an authorization from the Minister of Finance to go operational.
Judith Bih Anye, secretary of the constituent assembly and President of Azire Credit Union, one of the biggest unions in CamCCUL now member of the newly formed network says the decision to leave stems from the manner in which the CamCCUL network is run.
Located in the commercial avenue, Bamenda’s Wall Street, the head of office RECCU-Cam Ltd has 253 as its postal address.
Two years ago controversy sparked over term of office for elected officials- two years renewable once.
Cracks started surfacing In December 17, 2006 when an extra ordinary general assembly was convened to amend the by-laws governing the cooperative credit unions in Cameroon. Most presidents at the time would have left the governing organs at the end of 2007 or 2008 as provided by the 1992 law on common initiative groups and cooperative societies in its article 23.
By 2009, Musa Shey Nfor, re-elected last June 1 as President of CamCCUL had spent six years as President of his credit union, Bamenda Police Credit Union, BAPCCUL, instead according to Judith Bih Anye, he remote controlled the league to amend the mandate to five years renewable once.
It was a lee way for some presidents to seek reelection in order to benefit from a two-year extension.
“We are in illegality as the trend towards the manipulation of texts is continuing, especially as the new pretest is the implantation of the OHADA Uniform Act on CIGs and cooperative societies,” Mme Bih Anye told the SUN last year.
But, according to Shey Musa Nfor, “an international law (OHADA Uniform Act on CIGs and cooperative societies) supersedes the national law (1992 law on common initiative groups and cooperative societies) when there is contention”.
“We simply applied the law,” he noted while calling his opponents loan defaulters with vested interest to head CamCCUL.
Another contention is the formula to use in splitting assets between the faithful and departing credit unions from CamCCUL.
SOURCE: Business in Cameroon-->