Arcubus microfinance fund launched in Africa

Microfinance Monitor, March 23, 2010: The Diocese of London and City business leaders have launched Arcubus, a new social investment fund for microfinance in Africa.

Arcubus aims to raise £1m in 2010 through a combination of donations and investments in a Social Investment Bond issued by Citylife Ltd. The amount will be channelled to a partnership of microfinance NGOs who will offer small loans, savings accounts and insurance to some of the poorest people in Mozambique and Tanzania, enabling them to expand micro-businesses,create and sustain jobs, invest in health and education, and contribute to the economic growth of their countries.

Opportunity International, the MicroLoan Foundation and Five Talents UK, three of the UK’s most established and other microfinance NGOs will build four new banks in Niassa, said a statement. A fourth partner, Microfinance Without Borders, will arrange short-term microfinance placements in Kenya for City workers, enabling them to share their expertise and develop new skills and interests.

The money raised will help the Diocese of London to meet the target set out in the London Challenge to raise £2,012,000 for development in Africa by 2012. The Rev George Bush, Rector at St Mary-le Bow Church and Chair of the Trustees at Arcubus, said: “Arcubus is a great example of London churches working in partnership with the City to encourage positive action on global development in Africa.”