$5 million loan from Opportunities for the Majority to Habitat for Humanity El Salvador to benefit nearly 8,000 families at the Base of the Pyramid
The Opportunities for the Majority (OMJ) sector at the Inter-American Development Bank (IDB) approved a $5 million loan to Habitat for Humanity El Salvador (HPHES) to support increased access to home improvement financing for the Base of the Pyramid (BOP) in El Salvador.
The operation will contribute to reducing the qualitative deficits in housing that disproportionately affect that population segment. HPHES is a legally established private, nonprofit organization that has operated in El Salvador since 1992 providing housing solutions for low income families to access safe, healthy, and dignified dwellings. HPHES is an affiliate of Habitat for Humanity International, Inc.
The housing deficit reaches 58 percent in El Salvador, with even higher rates in rural areas and among families in the bottom income quintile. HPHES has provided financing, bundled with construction technical assistance and financial education, to 15,000 low-income households in the country over the past 20 years, primarily for the replacement of dirt floors, upgrading of improvised and potentially hazardous walls and roofs, as well as connections for basic services including electricity, water, and sanitation services.
“This program is consistent with OMJ’s mandate as it will provide additional access to home improvement financing for BOP families that could not otherwise access such credit, under terms that are commensurate with their repayment capacity, and accompanied by the technical assistance required to help beneficiaries maximize the sustainability of their home improvement investments,” said Luiz Ros, OMJ Manager.
About Opportunities for the Majority
Opportunities for the Majority promotes and finances market-based, sustainable business models that bring together companies, local governments, and communities in developing and supplying quality products and services to people at the base of the socio-economic pyramid in Latin America and the Caribbean.
- John Ferriter