Three social investors with more than 25 years of experience working with microfinance institutions, agricultural cooperatives and small businesses in emerging countries will provide specialist support to the fund. These include French development association Solidarite International pour le Developpement et l’Investissement (SIDI), who will manage of the FEFISOL fund, Belgian development organization Alterfin and Etimos from Italy. The FEFISOL fund is expected to double in size by 2013 and will assist microfinance institutions that help poor households in rural areas where no formal lending exists. Rural microfinance will support income generating activities and reduce dependence on outside help.

“The European Investment Bank recognizes FEFISOL’s dedicated support for organic African farmers and improving access to fair trade markets. We are committed to helping microfinance foster economic development and poverty reduction across Africa.” said European Investment Bank Vice President responsible for Africa, Plutarchos Sakellaris.

“Microfinance is key to enhancing economic growth in sub-Saharan Africa. The FEFISOL initiative will reach remote rural communities, helping small businesses develop and progressively reduce poverty.” Added Marie-Hélène Loison, Head of the Private Equity Department of PROPARCO, the private sector arm of AFD.

“During our 25 years of activities as a social investor, we noted that the microfinance sector, especially in Africa, had ample room for further progress; that this called for a new stage of development, to respond to new needs for financing the impact – both economic and social – of the sector, particularly in the rural context. These needs translate, among others, in the availability of increased resources, on a stable and longer term basis, and, from a technical point of view, more sophisticated tools and competences, while preserving the dynamics of new initiatives and experimentation that were at the heart of this success” said Christian Schmitz, Managing Director of SIDI.

FEFISOL will fund microfinance institutions and producer organizations across the continent in local currency. African microfinance bodies will benefit from a subsidized loan provided by AFD that absorbs foreign exchange loss on local currencies. Dedicated support for fair trade and organic producer organisations will help improve the quality and development of their activities over the long-term, notably by gaining access to new market sectors. SOS Faim and the African Microfinance Institutions Network will assist in this process, along with specialist fair trade organizations based in Africa.

The support of private and public investors has been crucial in the successful launch of the fund. The European Investment Bank will provide EUR 5m for FEFISOL to help develop microfinance operations and small holder organizations in rural areas across Africa and improve access to fair trade and organic export markets.  AFD is providing a subsidized EUR 3m loan to mitigate foreign currency risk and Proparco structured the equity investment of FISEA for a total consideration of EUR 5.4m.The Norwegian Microfinance Initiative (NMI) will also make a EUR 1.8m contribution to the Fund along with Crédit Coopératif, Societa Europea Finanza Etica ed Alternativa (SEFEA), Développement International Desjardins (DID) and Fondation Caritas France.

Technical assistance will also be provided to help microfinance institutions develop new products, improve business planning and develop legal and human resources capabilities. This initiative compliments the REGMIFA rural microfinance fund launch earlier this year and supported by the European Investment Bank and European development finance institutions.

Source: Europa.eu

European News from NetNewsPublisher.com

Prime Minister Jean-Claude Juncker made the announcement for a EUR 1.2 million grant to the trust fund, noting that “by contributing to the development of small and medium enterprises and microfinance, renewable energy, urban development as well as infrastructure development, the FEMIP Trust Fund aims to reach a common goal that Luxembourg strongly advocates: job creation and growth, in particular to support the democratic transition processes in the region”.

Welcoming the announcement, EIB Vice-President Philippe de Fontaine Vive declared that the FEMIP Trust Fund was currently exchanging views with microfinance organizations based in Luxembourg on possible initiatives for Tunisia and other countries in transition. He expressed confidence that the Trust Fund, which has benefited in the past from the generous support of 15 EU countries and the European Commission, would successfully advance toward a new phase of activities.

“If ongoing changes in the Mediterranean region entail new challenges, he said, then our assistance also ought to adapt: this is why we will provide fresh impetus, in particular for small and medium enterprises and youth employment, through new initiatives in the coming weeks carried out by FEMIP. Luxembourg’s renewed confidence therefore comes at a crucial and historical time.”

Source: Europa.eu

European News from NetNewsPublisher.com

The schemes offer tenants greater mobility, choice and flexibility when looking at their housing options enabling them to move across different local authority areas, for example if they were looking to move for a job opportunity.

Since the program began in 2005 more than £6.5 million has been given to councils to work with housing associations to provide increased choice and mobility for thousands of new and existing social housing tenants. Over 80% Local Authorities across England or 265 Local Authorities, now have a scheme in place or in development and John Healey said that the government remained on target to ensure choice based lettings were rolled out across the whole of the country by the end of this year.

John Healey said;

“Thanks to this funding more councils and housing associations will be able to offer their tenants more choice in where they want to live beyond the traditional boundaries. These schemes mean that local authorities have another tool to manage their waiting lists more effectively, by ensuring each home is matched to tenants more suited to the property.

“This is not just a good deal for local authorities but a good deal for tenants too, enabling those who need to move, perhaps for work, to do so. This comes alongside other measures I have put in place to ensure that social housing is better meeting the needs of communities. I have recently launched guidance for local authorities to ensure fairness in the allocations system as well as a clampdown on housing cheats illegally subletting homes, and I will continue to look at more can be done.”

The successful sub-regional schemes are:

• Allerdale to join the Cumbria scheme
• Barrow-in-Furness to join the Cumbria scheme
• Burnley to join the Pennine Lancashire Scheme
• Lancaster Scheme
• Medway to join the Kent Home Choice Scheme
• Test valley to join the Hampshire Home Choice Scheme
• Sefton and Halton to join the Merseyside Scheme
• Craven and Richmondshire to join the North Yorkshire scheme
• Leicestershire and Rutland Scheme

Source: Communities and Local Government

Net News Publisher for World News

Tenancy cheats live elsewhere and can earn thousands of pounds a year by unlawfully subletting their properties at higher rental rates.  If caught they will lose their tenancy, and could lose their right to social housing in future.

Those occupying these properties may not know about the fraud but 80 per cent do not qualify for a council or housing association home, and instead have to find a new home through the private rented sector.

The Audit Commission have suggested that the number of social homes unlawfully acquired or sublet could range from one in 100 to as many as one in 20 in some inner-city areas – totaling as many as 50,000 homes nationwide.

147 councils have signed up to the Government’s first ever national crackdown on housing fraud, including every council in London.  With councils working alongside the housing associations in their areas, they will benefit from a share of £4million to set up their own anti-fraud initiatives – including special hotlines and crack squads to investigate allegations of fraud.

Mr Healey has today handed over to councils and housing associations around 8,000 thousand leads to follow to potential tenancy cheats in their communities, found through data sweeps by the Audit Commission matching tenancy records against records held by councils, housing associations and other public bodies.

Public tip-offs are vital to tackling the fraudsters – half of all homes recovered from cheats are done so after tip-offs from neighbors.  So he is offering a reward/bounty of £500 to anyone whose information leads to the recovery of one of the first 1,000 homes.

The average cost of recovering a property from a tenancy cheat can be as little as £3,000 – while the total cost of building a new council or housing association home can reach well over £100,000.

This anti-fraud drive to recover homes comes on top of the largest council house-building program for nearly two decades and new guidance for councils to manage their waiting lists according to local priorities.

John Healey said:

“We can’t allow cheats to hang onto the tenancies of council houses they don’t need and don’t live in.  I want people to feel the system for housing families who need homes is fairer and that’s why I’m launching this national crackdown on tenancy fraud.

“This is first-ever fraud drive nationwide, which could free up as many as 10,000 homes for those on council waiting lists, with £4million and 8,000 hot leads for suspect tenants, 147 councils across the country can today get this crackdown on fraud off to a flying start.

“But public tip-offs are vital in tackling this problem.  So I am also offering £500 to anyone whose information leads to us recovering one of the first 1,000 homes.”

Councils and housing associations are also being given practical advice on how best to tackle housing fraud, as well as access to posters and leaflets that they can adapt to meet their needs, to encourage people in their area to come forward with any information they may have on local fraudsters.

Sarah Webb, chief executive at the Chartered Institute of Housing, said:

“Unlawful sub-letting and occupation of scarce affordable housing is worse than theft.  In addition to the financial loss to the public, it also means some families are missing out on a decent, affordable home and all that this can bring.

“CIH believes that making the best use of existing housing is essential and I am delighted that we have been asked to write this guidance which provides landlords and local authorities with good practice and legal advice to support them to clamp down on these unlawful practices.”

David Orr, chief executive of the National Housing Federation, said:

“Tackling unlawful subletting is an important part of housing associations’ commitment to supporting those in housing need. Every home which is freed up through this initiative is another home available to a family who genuinely need it.

“Through effective partnership working between associations and local authorities, this initiative can deliver significant benefits to those who need affordable, secure homes.”

Source: Communities and Local Government

Net News Publisher for World News

A new pilot scheme – approved by the Homes and Communities Agency (HCA) London Board chaired by the Mayor – has been set up to explore what immediate steps can be taken to give London’s councils greater control and flexibility over housing decisions.  The pilot will also explore a framework which could see boroughs agree to an indicative budget for housing investment from 2011 as part of the next public funding round.

Croydon, Westminster and Hackney councils have been invited to take part in the pilot, starting from April 2010, as they represent a wide selection of the housing challenges in the capital, from over-crowding to major estate regeneration, and have all developed robust and ambitious investment plans working with the HCA.

The boroughs will spend the year-long pilot working with a steering group, chaired by the Mayor’s Housing Advisor, Richard Blakeway and made up of representatives from several key agencies including London Councils, HCA, Housing Associations and Communities and Local Government, looking at what steps would be needed to create a London-wide delegated delivery program. Every borough will potentially be offered the opportunity to negotiate a delegated contract for the 2011 investment round.

The pilot is a key part of the Mayor’s ongoing commitment, outlined in his draft London Housing Strategy, to work in partnership with boroughs to deliver more affordable housing in the capital.

The Mayor of London Boris Johnson said:

“We remain on track to deliver a remarkable number of affordable homes over the next few years but we must begin to look now at how we can keep this momentum going into and beyond 2011. London’s councils have a hugely important part to play in helping us achieve the levels of affordable housing this city needs and they are once again leading the way with this superb new pilot.

“By giving boroughs greater autonomy and responsibility over how housing investment in their area, in return for solid commitments on delivery, we should not only see an increase in the number of homes being built but that the right sorts of homes are created, in the areas where they are needed most.”

David Lunts, London Regional Director of the HCA, said:

“The delegated delivery pilot will build on the HCA’s Single Conversation model of working with London boroughs. It will see whether we can go further to help them in their efforts to provide new homes and stronger communities that are tailored to local conditions.”

Cllr Philippa Roe, Westminster Council’s cabinet member for housing, said:

“This pilot is an important milestone in paving the way towards giving councils more freedom to deliver affordable housing that meets the needs of their local communities.

“We want to see a system that gives more flexibility to local authorities so they can respond more effectively to the needs of local people.

“We are delighted to have been chosen and hope we can make a significant contribution to forming a blueprint that other local authorities across the capital will follow.”

Councilor Dudley Mead, deputy leader and cabinet member for housing said:

“Croydon is excited to be part of this pilot program, and is ready to rise to the challenge of delivering stretching new targets of affordable homes. We welcome the certainly over long-term investment funding that this scheme will bring, and we are keen to make use of its flexibility to respond quickly and effectively to new development opportunities. With more ability to shape our own housing program we will be at the forefront of the drive to have control over spending decisions passed down to a local level.”

Steve Douglas, Hackney Council’s Interim Corporate Director for Neighbourhoods and Regeneration, said: “Hackney is among the top-performing London boroughs for affordable housing provision, with 800 new homes delivered last year exceeding our GLA target. We welcome this opportunity to participate in a pilot which should allow greater local flexibility, as local authorities are ideally positioned to take the lead in working with partners for new housing. We would look for the pilot to provide genuine freedoms, and to reduce bureaucracy, not to create another layer. Hackney Council is committed to the regeneration of the borough’s estates, and to providing 21st-century homes for residents.”

During the pilot, the three boroughs will receive support from a steering group made up of representatives from the HCA, the Greater London Authority, the London Development Agency and Communities and Local Government.

Source: London.gov

Net News Publisher for World News

The implementation of the AGRA program began on Friday in Abuja with the signing of a $150 million Memorandum of Understanding between IFDC and “Grooming People for Better Livelihood’’ a Nigerian micro-finance institution.

Mr Scott Wallace, IFDC Country Director, said that under the MoU, a total of $150 million would be provided to Grooming People for Better Livelihood to implement the first phase of the Agro-Dealer Support (NADS) project.

The Director promised that IFDC would collaborate with micro-finance institutions to provide credit facility to agro-dealers in Oyo state and the Federal Capital Territory (FCT) to enable them expand their businesses.

Dr Godwin Nwabunka, Chairman of Grooming People for Better Livelihood Centre, expressed the hope that the partnership would help to revolutionize the agricultural sector and remove financial constraints facing the small-scale farmers.

He said that with the provision of the facility, the institution would keep small-scale farmers busy all year round, to enable them build their capital base for higher dividends.

Source African Press Agency

Net News Publisher

How People Arrived Here:

GROOMING PEOPLE FOR BETTER LIVELIHOOD

The fundamental difference is that our business is very connected to the real economy. When we provide a loan of $200, that money will go to buy a cow somewhere. If we lend $100, someone will maybe buy some chickens. In other words, the money goes to something with concrete value. Finance and the real economy have to be connected. In the US, the financial system has completely split off from the real economy. Castles were built in the sky, and suddenly people realized that these castles don’t exist at all. That was the point at which the financial system collapsed.

It goes without saying that Yunus’ wisdom had little impact on the efforts of either the Bush or Obama Administrations to bring recovery back to our national (let alone the global) economy. Thus, Yunus has decided to deliver the message again; and this time, as Tim Johnston has reported for the Financial Times, he is making it clear that the failed business models of the financial sector need to be replaced by a non-profit one. He has even proposed a name for his model: He calls it “social business.” Here is how he describes it:

What I am suggesting is that you create businesses exclusively for changing a situation that exists, of poverty, or environment or so on.

This is an exclusive arrangement and you invest there not to make any profit out of it, personally or companywise, but to dedicate yourself to solve the problem, and you can bring your own technology, which you command, to make it happen.

My guess is that this is the sort of talk that can set the rich and mighty quaking in their boots, particularly when Yunus backs it up with a you-can’t-argue-with-success logic:

It is particularly remarkable when big banks – lots of collateral, lots of lawyers around them – are collapsing, and microcredit, the programme we built, is working everywhere without any collateral; without any lawyers. Their repayment has remained as high as ever.

Reading this account, I found myself wondering whether or not the real secret of Yunus’ success was one of attitude. I cannot imagine any one of us who has not felt that our dealings with a financial institution have been fundamentally adversarial, the underlying premise on the part of the institution being: “I have something you want; and, if you are to have it, you must be beholden to me.” Yunus is more interested in being a problem solver than an adversary. At a time when it seems as if our very sense of humanity is in jeopardy, Yunus has focused on trying to recover it. As he puts it:

Poverty is not created by poor people – it is not their fault. They are as good human beings as anyone else, they are as creative as anyone else, they are as enterprising as anyone else. Simply, they never get a chance to discover their own talent.

Coming from anyone else, this might sound like granola-speak; but this man is a banker whose message is only as strong as the bank he runs.

Unfortunately, for all of his efforts to bring reality back into the financial sector, he will still have to confront that “classical battle between Lucy and Linus” that seems fated to reduce any effort to reform health care to bureaucratic rubble. The stakeholders in the adversarial approach to finance are legion, and they still have more than adequate resources to continue their adversarial ways. Nevertheless, Yunus deserves the Chutzpah of the Week award for his efforts to keep the discussion of current economic problems on message, in spite of the inevitable adversities that will confront him.

Posted by Stephen Smoliar

Net News Publisher for World News