Grameen Foundation : Resource Center : Print Newsletter : Spring 2005 : White Paper: Tapping Capital Markets
GFUSA White Paper Looks at Tapping Capital Markets
GFUSA commissioned and published a white paper to explore ways to access the enormous resources of the world’s capital markets for microfinance funding.
The paper, titled Tapping Financial Markets for Microfinance, explores the opportunities and challenges microfinance institutions face in tapping capital markets for financing their growth. It was written by Jennifer Meehan, who recently joined GFUSA as Director of Capital Markets.
In its executive summary, the paper acknowledges “the important and catalytic role played by the international donor community in promoting microfinance.” However, it notes that while market demand for microfinance services is estimated at more than $300 billion, market supply is only $4 billion. “To date, neither international nor domestic financing has been sufficient to meet demand,” the paper reports. “If microfinance institutions are to close the significant supply-demand gap, vast external resources will need to be tapped. In the long term, only the financial markets have the resources readily available to allow for optimal growth.”
“Assessing the financial markets is not a short-term solution for resolving the financing hurdles faced by MFIs, but it does represent a long-term opportunity to transform the sector,” the paper concludes. Jennifer Meehan recently added: “GFUSA, with its strong market knowledge, partner relationships and a growing financial markets track record, is in a unique position to harness the vast resources of the capital markets to empower millions of poor women.”
Visit www.gfusa.org/programs/capital_markets/ to download the paper.
For more information, contact Drew Tulcin, Capital Markets Specialist at 202.638.3560 ext. 123 or dtulchin@gfusa.org
Grameen Foundation : Resource Center : Print Newsletter : Spring 2005 : White Paper: Tapping Capital Markets
Grameen Foundation uses microfinance and innovative technology to fight global poverty and bring opportunities to the world's poorest people. With tiny loans and financial services, we help the poor, mostly women, start businesses and escape poverty. Our global network of 55 microfinance institution (MFI) partners including our Growth Guarantee partners has touched more than 34 million people in 24 countries. In addition, we introduced and now sustain technology initiatives (Mifos and Village Phone) in Cameroon, Kenya, Rwanda, and Uganda, bringing our total country outreach to 28.
+1-202-628-3560 www.grameenfoundation.org
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