What to Consider When Investing in “Green” Microfinance?

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Probably one of my last article on the topic as I am moving to the off-green energy space (non -MFI), I hope you enjoy! If you’re an impact investor, you probably want to do more in “green”. For instance, impact investing in microfinance, which constitutes a large portion of impact investing writ large, rarely incorporates environmental sustainability. You might think, my second bottom line is to help lower-income households get better access to financial services, …

Damage investing?

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As impact investors, we need to be careful at some of unwanted but serious consequences of our investments that can go fully against the initial intentions. Take investing in Microfinance for instance. The social bottom line is financial inclusion, i.e helping undeserved segment get access to better financial services including credit. If, as investors, we keep pushing money in saturated markets, then the underlying MFIs will keep deploying credit, probably lending in less stringent and …

Microfinance investing: what to do when facing a (likely) saturated market?

One of the most tense situation an investor in microfinance and financial services face is when looking at an opportunity in a market that is overheating. On one hand you have your prospect or client requiring a large line of credit, and on the other hand, you have been reading those reports that the market is almost fully saturated. And the situation of course is further form being all black, otherwise the decision would be …

How to price a Social Impact Bond?

I find it quite fascinating that there is almost nothing in the social impact bond literature- from the insightful Brookings report to the amazing Social Finance database – on how to price a social impact bond. There are some figures shared here and there, but without any substantiation or figures helping calculate the IRR. In my opinion, this is mainly due to the following reasons: i) most investors in Social Impact Bonds are foundations and/or …

Curbing dishonesty in Tunisia

I am not talking here about some of the ineffective moralistic campaigns conducted by some non profits and political parties. I am referring to the work of Daniel Ariely and other scientists looking at behavior economics and how their conclusions can apply to the Tunisian context. The first good news is that, when the frequency of cheating is tested objectively and scientifically, there is no major difference between people in Germany, in Argentina or Tunisia. …

The Little Dictionary of the Arab Spring

From my latest WIP book ‘The Little Dictionary of the Arab Spring” 😀 “ASS: Acronym. Stands for Arab Spring Superstar. May refer to a person from Arab origin, not necessarily living in the Arab world, under 35, who achieved fame after the “Arab Spring”, a wave of demonstrations and riots that began in Tunisia in December 2010. Generally, a blogger, activist and/or a founder of a non-profit who plays the role of spokesperson for the …

Principles

I am currently reading “Principles” by Ray Dalio. It is available for free on the Bridgewater website but you can also download it here: Bridgewater-Associates-Ray-Dalio-Principles Ray tries to write down the principles that he’s been following in his life and in his investment approach, resulting in one of the most successful and credible hedge funds worldwide. I find it fascinating to take the time and reflect on the principles that have been guiding your life, reaching …