Institutions in Peru, Colombia and the Dominican Republic win IDB awards for promoting Microenterprise

Two microfinance institutions (one Peruvian , one Dominican) and a small Colombian business association are this year's winners of the annual awards presented by the Inter-American Development Bank to organizations offering outstanding services to microenterprise in Latin America and the Caribbean.

The winners are Mibanco of Peru, Banco ADOPEM of the Dominican Republic, and the Cooperativa Multiactiva de Tenderos Asociados en Acción (“Multi-active Cooperative of Associated Shopkeepers in Action”) of Colombia. The awards will be formally presented on September 30, at the inauguration of the XII Inter-American Forum on Microenterprise, with the participation of Peruvian President Alan Garcia and IDB President Luis Alberto Moreno.

At the ceremony, the IDB will also present awards to three Peruvian microentrepreneurs who were proposed by institutions in their country in recognition of their innovations as businesspeople and for their contributions to their communities.

The Inter-American Forum on Microenterprise (Foromic) is the principal annual conference on microenterprise in Latin America and the Caribbean, home to some 70 million microenterprises, which generate about half of the employment in the region. Some 1500 participants will attend the event in Arequipa.

Winning institutions

Mibanco of Peru won the award for the region’s top microfinance institution, a distinction based on performance indicators that have become the industry standard and that currently measure hundreds of microfinance entities. In a little over a decade, Mibanco has grown to become the top microfinance institution in Peru; but this is not its only achievement. Mibanco has been a pioneer in providing new products to its clients, such as housing  finance, and it has also succeeded in becoming a multinational operation, entering several Latin American countries through its holding company ACP.

Banco ADOPEM (Banco de Ahorro y Crédito ADOPEM) won the special award for the microfinance institution that has excelled in expanding coverage and reaching clients in areas with scant access to financial services. Established in 1982 as a nonprofit organization, ADOPEM has focused on providing financial services to low-income women, who form the majority of its clientele. This Dominican institution is part of Women’s World Banking,  which has already received a similar IDB award. During the 2001 Foromic conference, held in Santo Domingo, the Dominican Republic, ADOPEM was honored with the award for the best nongovernmental organization.

La Cooperativa Multiactiva de Tenderos Asociados en Acción, which has hundreds of small retail members in the Cauca Valley, won the award for institutions that provide business development services in value chains. Through its services in training, technical assistance and group purchases, the cooperative has helped its members increase sales, reduce electricity consumption, expand access to credit, and begin the process of formalization.

Microentrepreneur awards

The awards for local businesspeople were given to three  individuals proposed by Peruvian institutions that support microenterprise development.

The first award is for Jose Eduardo Navarro Ipanaque,  who runs a bicycle manufacturing business in the northern city of Sullana. This Peruvian entrepreneur began selling used parts  and eventually  began to assemble bicycles adapted to the needs of farmers in the region. His family business is a client of municipal savings and loans institution (Caja Municipal de Ahorro y Crédito) CMAC Sullana.

The second award goes to Collantes Tafur Sameniego Siguay, owner of a business that sells equipment for small-scale fishing in the port town of Paita.  This entrepreneur has developed more durable and  affordable implements to help his clients increase their productivity. Another client of CMAC Sullana, he also  is also known for his contributions to charities and local sports.

The third award goes to Elile Faustina Torres Garcia, an Ayacuchan entrepreneur dedicated to rescuing traditional leather craftwork. She uses only natural materials and works with women in marginal zones, including some victims of domestic violence. The products are decorated with handmade borders and weavings of traditional fabrics. Ms. Torres Garcia is a client of CMAC Arequipa.

The Foromic conference, which takes place this year from 30 September to 2 October, is organized annually by the IDB’s Multilateral Investment Fund, which promotes private sector development in Latin America and the Caribbean, with emphasis on small businesses and microenterprise.