Venture Capital for MicroFinance: Chris Brookfield (Part 8)

To conclude the interview, I ask about Africa. The general political instability has created an environment which makes it difficult for microfinance investments. However, you have to wonder if some socio-economic stability would not provide increased political stability? A vicious cycle exists, but can it not be concerted into more of a virtuous cycle?

SM: What is the situation in Africa? CB: I don’t work in Africa. Generally, in my opinion, there are some good institutions in Africa. Unitus has one partner in Kenya who is doing very well. For what I do, which is mostly higher growth, more commercial microfinance, you need to have a reasonably domestic political situation. In many communities in Africa it is not clear that you have that. I think Africa will have a lot of potential. There is clearly a lot of need, but the world is a big place.

SM: Is there any other supporting material you would want to provide or point me to? There is a clear lack of awareness of microfinance. I sent a synthesis piece on the bottom of the pyramid microfinance opportunities to about 50 Indian bloggers, and not one of them has any knowledge of the industry. It is a question of educating the media. CB: I would be more than willing to help with that, and will ask one of my colleagues to contact you. There are enormous amounts of information out there.

It is hard for me to answer the question because it is a huge subject. For instance WRI just published a 300 page report on the bottom four billion consumers and market sizings. It is an overwhelmingly large statement about the market potential of the bottom 4 billion in the world. The MixMarket is the industry standard for information on microfinance, has nearly as many companies listed on it as most of the domestic stock exchanges where microfinance happens. All of the latest financial information is available there.

On the Unitus side we have a dozen analysts and consultants working with information and a marketing group that is tasked specifically to help create awareness around microfinance.

SM: My audience is largely entrepreneurs. A very large percentage of entrepreneurs in India read my writings. I have chosen to use my platform as a vehicle to discuss the bottom of the pyramid opportunities and make people aware and stimulate their imaginations. If you can connect some of your analysts with me I think we can work together and over time educate the market. CB: I would be more than happy to connect you to the right people at Unitus.

[Part 7]
[Part 6]
[Part 5]
[Part 4]
[Part 3]
[Part 2]
[Part 1]

This segment is part 8 in the series : Venture Capital for MicroFinance: Chris Brookfield
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