An Introduction to Microcredit

and Microfinance
Presentation to the Rotary Club of Oakville

Peter Nakamura
June 17, 2009
Agenda
• Introduction
• What is microcredit and
microfinance?
• Microfinance today
• My experience in Mozambique
• How can you get involved?
• Q&A
Introduction

• Born and raised in

Kobe, Japan
• Moved to Oakville,
Ontario in 1999
• Graduated from
Appleby College in
2005
• Graduated from
Queen’s University with
a degree in business in
2009
 What is microcredit?

“
The extension of small loans to low-
income clients who traditionally lack
access to banking.

”
Muhammad Yunus
Muhammad Yunus

Mohammad Yunus receiving the Nobel Peace Prize in 2006.

 Benefits of microcredit
• What are the benefits?
– Inclusion of the poor into the financial system.
– Access to loans can open up numerous opportunities
such as starting a business, improving housing
conditions, or purchasing an asset.
– Lower interest rates compared to local moneylenders.
– Dignity and self respect of employment.
– Goes beyond the traditional concept of development
aid as a “handout”.
– Opportunity for education and community
development.
Microcredit v. Microfinance

Microfinance
- Savings
- Money transfer services
- Insurance

Microcred
it
(i.e. Loans)
 Microfinance today
• The industry has been growing rapidly with
$25 billion currently at work in
microfinance loans.
• Microfinance Institutions (MFIs) are now
offering a diverse array of products from
savings to insurance.
• Improved oversight and transparency.
• Greater focus on improving the customer
experience.
 Fellowship in Mozambique
• Selected as a
International Microfinance
and Microenterprise
Fellow by the Aga Khan
Foundation Canada in
May, 2009.
• After a month-long
training seminar, was
placed in Pemba,
Mozambique with the
First Microcredit
Programme for an 8-
month internship.
Mozambique
Pemba, Mozambique
Pemba, Mozambique
The First MicroBank – Mozambique
 Projects and responsibilities
• Developing a loan officer training program.
• Assisting with the transformation of the
microcredit program into an official bank.
• Reviewing and suggesting improvements for
various processes within the bank.
• Setting up and managing the bank’s network
and database.
• Helping to prepare the bank’s annual business
plan.
Loan officer training
My colleagues
Our clients
Our clients
Our clients
How can you get involved?
 How can you get involved?

• Learn more!
– Consultative Group to Assist the Poor
(www.cgap.org)
– Microfinance Gateway
(www.microfinancegateway.org)
– miX Market (Microfinance Information Exchange)
(www.mixmarket.org)
 How can you get involved?

• Donate!
– ACCION
(www.accion.org)
– FINCA
(www.finca.org)
– Aga Khan Agency for
Microfinance
(www.akdn.org/akam.asp)
– BRAC
(www.brac.net)
www.kiva.org
 Thank you!
Any questions?

Peter Nakamura
peter.nakamura@gmail.com
905.849.0856