Nordic Microfinance Initiative (NMI) invests in and builds up Micro Finance Institutions in developing countries. After 10 years of investments, NMI presents 10% return since inception and loyal investors sign record-high commitments for the fourth NMI fund.
- We invest in poor countries where others don't want to invest and with currencies others fear to use. Still, at the 10 years anniversary NMI can promote a financial return (USD) of 10% since inception as well as a social return of 7 million clients, whereof 96% are women! We are really proud of this and we know that NMI makes a difference, says NMI Managing Director Arthur Sletteberg.
Today, roughly 1.7 billion of the world’s adults are unbanked. Increased access to capital through well-functioning microfinance institutions is an important gateway to financial inclusion for unbanked people in rural and in urban areas.
With access to bank accounts and credits, poor and unbanked people have a possibility to start and expand their business, invest in education or health, manage risk and to be resilient to future financial shocks.
Arthur Sletteberg, Managing Director NMI
NMI was established in 2008 by a handful private investors and Norfund. The goal was to unite private and public capital in an effort to give poor people in developing countries access to financial services.
- NMI is the first and most successful Public-Private Partnership in Norway, says Kjell Roland, CEO for Norfund. - With NMI, we created something that is viable in the long run and when IFU came along in 2016, NMI turned from being a Norwegian initiative to becoming a Nordic initiative. Arthur Sletteberg and his NMI team are doing a fantastic job making the right investments and getting new investors on board. This is really what fighting poverty is all about, says Roland.
Arthur Sletteberg and his NMI team are doing a fantastic job. This is really what fighting poverty is all about.
Kjell Roland, CEO Norfund
Until recently, NMI has comprised three micro-financing funds (NMI Global Fund, NMI Frontier Fund, NMI III ) with assets under management of total 200 million USD. At the 10 years anniversary ceremony yesterday, a new fourth fund was launched with record-high initial commitments being signed by existing investors.
While this fourth fund already has received commitments of 850 mill NOK (105 mill USD), NMI's aim is that the fund will reach 1 billion NOK in foreseeable future. This new fund will, as the previous NMI funds, promote financial inclusion for poor people in Africa and Asia and support social progress for millions of clients. However, in the coming years, Sletteberg and his team will aim to focus more on the implentation and use of new technology within the microfinance institutions to reduce costs and reach even more clients.
Read more about NMI here.