Oct 4, 2012
Four Latin American microfinance institutions to develop green financial products
MFIs from Bolivia, Mexico, Nicaragua and Peru are the first to receive technical assistance from the EcoMicro Program
Microfinance institutions (MFIs) from Bolivia, Mexico, Nicaragua and Peru will be the first to receive technical assistance from EcoMicro, a regional program that works with MFIs in Latin America and the Caribbean to help them develop green financial products and reduce their portfolios’ vulnerability to the effects of climate change.
EcoMicro is a $7 million regional technical assistance program co-financed by the Multilateral Investment Fund (MIF), a member of the IDB Group, and the Nordic Development Fund (NDF). The program plans to provide technical assistance to a total of 12 MFIs selected through a three-round regional competitive process.
“During the first selection round, EcoMicro selected four MFIs with truly innovative and visionary proposals,” said MIF General Manager Nancy Lee, who announced the winning microfinance institutions during Foromic, the region’s leading event for supporting and financing microenterprises, SMEs and small farmers. The meeting, organized annually by the MIF, was held this year in Barbados.
Lee added: “Through innovative financial products, businesses and families will be able to invest in green technology, and small farmers will have the chance to mitigate the adverse effects of climate change on their livelihoods.”
The winning institutions are:
- Te Creemos, Mexico. With support from EcoMicro, Te Creemos will develop a green finance product to finance clean energy and energy efficient solutions that will reduce microentrepreneurs’ energy costs and improve their competitiveness.
- Fondo de Desarrollo Local (FDL), Nicaragua. One of the largest rural microfinance institutions in Central America, FDL will use EcoMicro’s aid to pilot an adaptation finance that combines technical assistance, a loan for investing in adaptation initiatives and crop microinsurance in order to reduce adverse effects of climate change on its clients.
- Caja de Arequipa, Peru. Has 25 years of experience in serving micro, small, and medium-size enterprises in Arequipa and other regions of Peru. Through EcoMicro, Caja de Arequipa will develop a green finance product for clean energy and energy efficiency that will reduce MSMEs energy costs and limit their reliance on energy sources that can be disrupted during extreme weather events.
- Banco Los Andes Procredit, Bolivia. A microfinance pioneer will use the EcoMicro project to further leverage the ProCredit group’s commitment to green finance, developing a green finance product for clean and efficient energy to reduce energy costs and improve clients’ competitiveness.
The four winners emerged from the first regional call for proposals during the spring of 2012. The program received 54 applications from 15 countries in the region. Mexico and Peru showed the highest interest, closely followed by Bolivia, Ecuador and Colombia.
Find out more about the EcoMicro program at www.ecomicro.org.
About the MIF
The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank Group, supports economic growth and poverty reduction in Latin America and the Caribbean by encouraging increased private investment and advancing private sector development. It works with the private sector to develop, finance and execute innovative business models that benefit entrepreneurs and poor and low-income households; partners with a wide variety of institutions from the private, public and nonprofit sectors; evaluates results; and shares lessons learned.