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Yes, microlending reduces extreme poverty
Currently, 836 million people – or 12% of the world’s population – experience extreme poverty, living off less than US$1.25 a day. Using data from 106 developing countries from between 1998 and 2013 to examine the efficacy of microlending as a poverty-reduction tool, I found that just a 10% increase in the gross microfinance loan portfolio per client could cut this number by 1.26%.
- Categories
- Investing
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Innovation Prize for Africa recognizes Lakheni
A South African initiative that uses group buying power to lower food prices for needy communities, using a mobile app, has been nominated for the continental prize.
- Categories
- Technology
- Region
- Sub-Saharan Africa
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Impact investments booming in Africa
Impact investing has become a key focus for many fund managers on the continent. Just under half of funds surveyed in Southern, West and East Africa are awake to the idea that their assets can not only be used to generate good returns for their clients, but also outcomes that are good for society at large.
- Categories
- Investing
- Region
- Sub-Saharan Africa
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Impact investors face US$39bn opportunity in education microfinance
“Education offers extraordinary social returns in the sense that a decent schooling remains the best opportunity for most to escape poverty,” said Nathan Byrd who heads the Opportunity EduFinance program.
- Region
- South Asia
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Nigerian Tech Startup Tizeti Secures $2.1M To Bring Affordable Wireless Internet To Africa
Unlike other telcos, who many think have a monopoly on internet data services in the country, Tizeti can keep costs low for its consumer-facing brand, wifi.com.ng, because it is investing heavily in building out its own solar-panelled network of towers across Lagos, as well as a network of over 3,000 public hotspots across the city.
- Categories
- Technology
- Region
- Sub-Saharan Africa
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Wider, deeper VC investment needed for Indian and African mobile money firms, says Gates Foundation report
In excess of 233 million and 60 million people in India and East Africa respectively still lack formal bank accounts and 50% of small businesses don't have access to formal credit.
Financial technology (fintech) enabled firms such as M-Pesa in Kenya, which provides mobile payment, saving and credit facilities to 30 million people in East Africa, and the Paytm giant mobile m-commerce operation in India that claims 200 million users, are still the exception in terms of providing access to financial services for poor people.- Categories
- Uncategorized
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AfDB Approves U.S.$ 15 Million Equity Investment in Shore Capital Fund to Support Inclusive Growth in Africa
With a target capitalization of US$ 150 million, the Fund will provide growth capital and capacity building to inclusive financial institutions such as Small Business Banks (SBBs), microfinance institutions (MFIs), insurance providers, leasing companies, housing finance companies and financial technology providers.
- Categories
- Uncategorized
- Region
- Sub-Saharan Africa
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Banking the unbanked in emerging markets
Unlike the U.S., however, where 93% of people have banking options, many in developing markets do not. Globally, an estimated 2 billion adults lack access to formal financial services. The services that are available are typically cumbersome and expensive.
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- Uncategorized