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What we do

NMI offers different financial products to sustainable microfinance institutions (MFIs)  so they can achieve their social and financial goals.

What is microfinance

Microfinance is a diverse sector with numerous players of all sizes, methodologies, organization, performance and legal status. It comprises informal savings groups with few members as well as very large institutions like Grameen Bank in Bangladesh with over 7 million members. 
The demand for the services of microfinance institutions is significant, as it is estimated that about 2.5 billion people do not have access to financial services, including credit, savings, or insurance.
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Microfinance is the supply of loans, savings, and other basic financial services to the poor. People living in poverty, like everyone else, need a diverse range of financial instruments to run their businesses, build assets, stabilize consumption, and shield themselves against risks. Financial services needed by the poor include working capital loans, consumer credit, savings, pensions, insurance, and money transfer services.
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The Consultative Group to Assist the Poor's (CGAP's) definition of microfinance.

investments in microfinance

Since its inception in 2008, NMI has made over 30 investments, of which two thirds is comprised of direct investments in microfinance institutions through equity and loans. The last third consists of investments made through funds.
  • Global Fund

    NMI Global Fund invests primarily in microfinance investment vehicles (MIVs) led by established MIV managers and established, sustainable microfinance institutions.
  • Frontier Fund

    NMI Frontier Fund invests primarily in emerging MFIs both directly and through MIVs.
  • Fund III

    Fund III invests in emerging microfinance institutions showing an ability to grow financially and achieve social goals.
  • NMI Global Fund invests primarily in other microfinance funds. "Established MIV managers" are those who have previously managed MIVs and who have a demonstrable track record and experience. Funds managed by experienced MIV managers usually have a lower inherent risk.

    NMI Global Fund may also invest in "established MFIs". These institutions generally have a significant branch network, skilled and professional staff, and a large client base. They have a proven ability to attract and utilize investment capital from domestic and international capital markets and to work closely with institutional investors.

    Focus areas: Africa, Latin-America and Asia
    NMI Global Fund supports the continued growth and development of established MFIs. While the NMI Global Fund strongly focuses its investments in Africa, Asia and Latin America, it is not limited to these regions exclusively.

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    The Global Fund has both debt and equity investments in its portfolio.  


     
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  • "Emerging MFIs" are microfinance institutions that have good prospects for attaining financial sustainability within the next several years. These institutions are generally smaller and frequently newer organizations that are growing rapidly, providing products and services in particularly challenging regions or difficult market segments. They often pilot or introduce new or innovative products, services, and distribution channels. Frequently these institutions are transforming from non-governmental organization ("NGO") status and have not yet attracted significant investment from domestic or international capital markets, or worked closely with international institutional investors.

    Focus: Sub-Saharan Africa and South Asia
    The geographic concentration of the Frontier Fund is Sub-Saharan Africa and South Asia. The focus countries for the Fund are Cameroon, Ghana, Kenya, Mali, Nigeria, Senegal, Tanzania, Uganda, India and Pakistan. The Fund may also consider investments outside of these focus countries. 

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    The Frontier Fund may provide equity or debt to emerging MFIs, with a general orientation toward equity investments. With its equity investments, the Fund will take substantial minority positions (10-30%) in order to be an active investor.

     
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  • "Emerging MFIs" are microfinance institutions that have good prospects for attaining financial sustainability within the next several years. These institutions are generally smaller and frequently newer organizations that are growing rapidly, providing products and services in particularly challenging regions or difficult market segments. They often pilot or introduce new or innovative products, services, and distribution channels. Frequently these institutions are transforming from non-governmental organization ("NGO") status and have not yet attracted significant investment from domestic or international capital markets or worked closely with international institutional investors.

    Focus: Sub-Saharan Africa and South- and South East Asia
    The Fund invests in Sub-Saharan Africa and South- and South East Asia, focusing on specific countries in order to develop and contribute in the most effective way. The focus countries for the Fund are Cameroon, Ghana, Kenya, Madagascar, Mozambique, Senegal, Tanzania, Uganda, Zambia, India and Indonesia. The Fund may also consider investments outside of these focus countries.

    In-depth knowledge of the market is developed based on NMI’s experienced management team and tools such as Technical Assistance to focus on balancing long-term positive social and economic impact with sound financial returns. 

    Fund III may provide equity or debt to emerging MFIs, with a general orientation toward equity investments. With its equity investments, the Fund will take substantial minority positions and be an active investor.

Links

CGAP
CGAP is the leading independent resource for objective information, expert opinion, and innovative solutions for microfinance. CGAP works with the financial industry, governments and investors to effectively expand access to financial services for poor people around the world. CGAP’s mission is to help alleviate poverty by advancing access to finance.
MSC
The Microcredit Summit Campaign brings together microcredit practitioners, advocates, educational institutions, donor agencies, international financial institutions, non-governmental organizations and others involved with microcredit to promote best practices in the field, to stimulate the interchanging of knowledge, and to work towards reaching the Campaign’s goals.
MG
The Microfinance Gateway is the most comprehensive online resource for the global microfinance community. It includes research and publications, discussion groups, featured articles, organization and consultant profiles, and the latest news, events, and job opportunities in microfinance. The mission of the site is to advance knowledge and encourage innovation within the microfinance industry.
SP
The Social Performance Task Force (SPTF) was created in 2005. Its vision is to ensure that social performance management is standard business practice and is considered fundamental to achieving the social promise of microfinance. Today, SPTF consists of approximately 1600 members from microfinance stakeholder groups including practitioners, donors, investors, national and regional networks, technical assistance providers, rating agencies, academics, researchers and others.
Nordic Microfinance Initiative AS

Postal address:
P.O Box 1925, Vika, N-0125 Oslo, Norway

Visiting address:
Rosenkrantz' gate 22, 7th Floor, N-0160 Oslo

Telephone: +47 22 36 22 40
Fax: +47 22 42 89 01
E-mail: info@nmimicro.no
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