article thumbnail

Guest Post: An Entrepreneur's Thoughts on Market Incentives & Foreign Aid

Mills Scofield

Thoughts on Charity, Foreign Aid and Market Incentives - Tanzania. He worked in a firm that supported fixed income investments in emerging markets. One of his main tasks was to structure a hedging derivative that negated foreign exchange risks so that Microfinance institutions could take safer loans from the developed world.

article thumbnail

3 Things Driving Entrepreneurial Growth in Africa

Harvard Business Review

Firms are realizing what microfinance has known for a while: Local self-policing groups, or village headmen who police honor codes, can hedge cash flows in far-flung places. Toyota and Yamaha have found motorbike customers through such social group structures.