"Global crisis not affecting microfinance"

Its quite astonishing to still see articles about the lacking impact of the financial meltdown on microfinance. I caught the latest one in my blog reader today.

Quite in contrast, there are clear and tangible indications that it is affecting the industry. We dont need and indepth of grassroot impact to show that it does. In the latest expample, CDC is, after government request, diverting Pounds 300mn of its Pounds 650mn investment budget for this year to the IFC-led Global Trade Liquidty Programme, which is targeted at trade facilitation worldwide (not just north-south). The result for CDC is a cut in the amount of money that can be spent on straight emerging market equity, including microfinance. Since 2004 CDC has committed US$84m to microfinance (Annual Report 2008).

Less money, obviously, means less investment in the future. If this is replicated accross development finance institutions (as I know it is) and private investors (who are de-risking portfolio) then we can expect to see much lower growth figures going forward.

CDC & its critics

While in the UK I read a Sunday Times article about the CDC inquiry at the Public Accounts Committee. It surprised me slightly because i always thought of CDC as a world-leading DFI. Now the combined effect of the economic crisis that has already triggered a witch-hunt of top managers, and some mistakes at CDC, Actis & co., has made them the subject of aggressive accusations, even slander. The good thing about this media hype is that CDC and its fund managers will be made to act. The bad thing is that many of these critics have a much greater goal: to bring the entire field of business-driven poverty alleviation into disrepute. 

The whole business was still a little murky to me, so i set about crystallizing accusations and the truth behind them. Ended up longer than I wanted so I cant really post it here, but if you're interested you could read the draft version.

re-awakening

Apologies for the renewed prolonged silence. New material is coming, and  I have attached the final version of the franchising article to get going. It was never published, as intended, in the new Beyond Profit magazine to be published by the Microfinance Insights folks at Intellecap, due to a disagreement about length. If you want to find out what was, check out their website. They are offering 1-year free subscriptions to get things going. 

Carried Away

I'm not sure art auctions and champagne are a good mix. Never mind, it was fun and I ended up in with a rather good deal, me thinks. Though where to put it is quite a different question.

Ben Osaghae

Repeat Offenders

2005

Oil on Canvas

124.5 x 101.6 (49 x 40 in.)

Art update

The gut has a lot to do with why I'm in Africa. Firstly, the music is guttoral; it speaks to the heart. At the same time I have had this brooding gut feeling that Africa is the place for me for a decade or longer. A strong affinity with everything African is the result - its people, its ways and its art.

The first couple of weeks here rejuvinated this feeling. I managed to squeeze in a visit to the infamous (new) Shrine to see Femi Kuti. It was just an open rehersal, but even so - jumpin'! Also headed to the Jazzhole, a jazz and funk record shop. Just like London, but compare that to Hyderabad! In between the gym, work, french class routine (boosted by dinner parties and sailing) I picked up info on plays & open gigs, found an amazing coffee table book on Lagos (published by local Glendora), went to a few dinner parties and am off to an art auction tomorrow. The world has finally woken up to the excitement that the cultural scene has to offer, it seems. 

Needless to say that all this exciting stuff means I have yet to find a place to live or a car. But what a start to Lagos!