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Can Digital Credit Outperform Microcredit in the Developing World?
Microfinance has been hailed as a transformative force for poor households and entrepreneurs in emerging markets. But recent evidence suggests it is not the silver bullet it was once thought to be. Meanwhile, mobile phones have become ubiquitous in most developing countries, and Alexandra Wall, Natasha Beale and Carson Christiano explore whether digital credit can do a better job than microcredit in meeting the needs of the underserved.
- Categories
- Impact Assessment, Investing
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There is Such a Thing as Too Much, Too Fast: Avoiding ‘Mismatched Expectations’ in Off-Grid Energy Investing
A recent post by impact investing firm Ceniarth on the "Energy Access Hype Cycle" has generated considerable discussion, prompting critical responses from fellow impact investors Persistent Energy Capital and the off-grid lighting trade organization GOGLA. With this post, writers at the IFC join the discussion, analyzing the effect of rapid growth rates, high levels of consumer financing and operational efficiency on the liquidity of solar home system providers.
- Categories
- Energy, Investing, Technology
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In Impact Investing’s Rush to the Mainstream, Who Are We Leaving Behind?
After a long march toward mainstream acceptance, many in impact investing are claiming victory. But a new report by Oxfam and Sumerian Partners argues that the sector should focus on the needs of the businesses working to reduce poverty rather than on the investors who stand to benefit from their work. In other words, it's time to stop pretending that investors seeking a pure market return can tackle the most complex global challenges in high-risk markets.
- Categories
- Investing
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Investment where profit means better schools
The British Asian Trust is planning to raise $10m (£7.5m) for an "education development impact bond" in which investments are linked to specific targets in improving education for disadvantaged communities in India.
- Region
- South Asia
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New Products, New Markets – New Risks? Microfinance Shifts its Gaze to Housing
$2.3 trillion: That's what low-income households are predicted to spend on urban housing by 2025. So it's no surprise that many microfinance providers view housing lending as their next big opportunity for both profit and social impact. But this new focus brings plenty of challenges – and more than a few risks. We explore the implications of this development – a key topic of discussion at the recent European Microfinance Week.
- Categories
- Investing, Social Enterprise
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Asian Development Bank Bolsters Microfinance Program with $100 Million in Additional Financing
“Giving small businesses and entrepreneurs access to finance is one proven tool to improve livelihoods and reduce poverty,” said Sabine Spohn, Senior Investment Specialist in ADB’s Private Sector Operations Department.
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- Investing
- Region
- Asia Pacific
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Allianz invests $100M in micro-insurer BIMA
Allianz has invested $96.6 million in micro-insurer BIMA, which sells insurance by mobile phone in Africa, Asia and Latin America, Germany’s largest insurer said on Tuesday.
- Categories
- Investing
- Region
- Sub-Saharan Africa
- Tags
- insurance
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OPIC Announces $3.8 Billion in New Commitments in Fiscal Year 2017
The Overseas Private Investment Corporation (OPIC) today announced it committed $3.8 billion in financing and insurance across 111 new projects in fiscal year 2017 to support economic development in emerging markets.
- Categories
- Investing
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