introduction to microcredit and microfinance

An Introduction to Microcredit

and MicrofinancePresentation to the Rotary Club of Oakville

Peter Nakamura

June 17, 2009

Agenda

• Introduction

• What is microcredit and

microfinance?

• Microfinance today

• My experience in Mozambique

• How can you get involved?

• Q&A

Introduction

• Born and raised in

Kobe, Japan

• Moved to Oakville,

Ontario in 1999

• Graduated from

Appleby College in

2005

• Graduated from

Queen’s University with

a degree in business in

2009

What is microcredit?

“The extension of small loans to low-

income clients who traditionally lack

access to banking.

”

Muhammad Yunus

Muhammad Yunus

Mohammad Yunus receiving the Nobel Peace Prize in 2006.

Benefits of microcredit

• What are the benefits?– Inclusion of the poor into the financial system.

– Access to loans can open up numerous opportunities

such as starting a business, improving housing

conditions, or purchasing an asset.

– Lower interest rates compared to local moneylenders.

– Dignity and self respect of employment.

– Goes beyond the traditional concept of development

aid as a “handout”.

– Opportunity for education and community

development.

Microcredit v. Microfinance

Microfinance- Savings

- Money transfer services

- Insurance

Microcred

it(i.e. Loans)

Microfinance today

• The industry has been growing rapidly with

$25 billion currently at work in

microfinance loans.

• Microfinance Institutions (MFIs) are now

offering a diverse array of products from

savings to insurance.

• Improved oversight and transparency.

• Greater focus on improving the customer

experience.

Fellowship in Mozambique

• Selected as a

International Microfinance

and Microenterprise

Fellow by the Aga Khan

Foundation Canada in

May, 2009.

• After a month-long

training seminar, was

placed in Pemba,

Mozambique with the

First Microcredit

Programme for an 8-

month internship.

Mozambique

Pemba, Mozambique

Pemba, Mozambique

The First MicroBank – Mozambique

Projects and responsibilities

• Developing a loan officer training program.

• Assisting with the transformation of the

microcredit program into an official bank.

• Reviewing and suggesting improvements for

various processes within the bank.

• Setting up and managing the bank’s network

and database.

• Helping to prepare the bank’s annual business

plan.

Loan officer training

My colleagues

Our clients

Our clients

Our clients

How can you get involved?

How can you get involved?

• Learn more!– Consultative Group to Assist the Poor

(www.cgap.org)

– Microfinance Gateway

(www.microfinancegateway.org)

– miX Market (Microfinance Information Exchange)

(www.mixmarket.org)

How can you get involved?

• Donate!– ACCION

(www.accion.org)

– FINCA

(www.finca.org)

– Aga Khan Agency for

Microfinance

(www.akdn.org/akam.asp)

– BRAC

(www.brac.net)

www.kiva.org

Thank you!

Any questions?

Peter Nakamura

peter.nakamura@gmail.com

905.849.0856