IFU’s Post

🏦🪙 #Blendedfinance helps forge stronger links between #genderequality and sectors like energy and other climate-related investments, agriculture, transport, etc. 🌱🚚 We-Fi and IDB Invest's partnership leveraging blended finance vehicles to support financing gaps across #LatinAmerica and the #Caribbean is ensuring a more enabling environment for #womenentrepreneurs.

First social bond in Bolivia with BancoSol! Using funds from Women Entrepreneurs Finance Initiative (We-Fi), IDB Invest will provide a #blendedfinance incentive of up to $200,000 contingent on BancoSol meeting portfolio growth targets for women-owned small and medium enterprises in Bolivia, including in rural and Amazonian areas.   The blended financing comes on top of IDB Invest's support for BancoSol's issuance of Bolivia's first social gender bond, which raised approximately 205.8 million bolivianos (equivalent to US$30 million). The proceeds of the bond will be used to finance micro and small enterprises owned by women in Bolivia, with the goal of benefiting at least 4,500 such enterprises. IDB Invest played a key role in making the bond issue possible by providing a partial credit guarantee of up to 50% of the bond's capital. Kudos to the various teams involved in the transaction.

Better access to inclusive microfinance in #Chile. IFC announced the signing of a senior loan of US$10 million to Fondo Esperanza to increase its lending portfolio to women-owned micro-enterprises (WME), with a portion specifically targeted to WMEs owned by low-income migrants and refugees in Chile. Manuela Adl, IFC’s Senior Regional Manager, Southern Cone, commented: “Investing in microentrepreneurs is not just about empowering individuals; it's about fueling the engine of innovation, resilience, and economic growth. Through this investment, IFC aims to be a catalyst for community empowerment and sustainable development.” Catalina Valenzuela Béjares, Administration and Finance Manager, Fondo Esperanza, stated that “alliances like this provide us with opportunities to extend our support to entrepreneurs across Chile, with a focus on reaching out to marginalized communities, including migrant women. With this funding, we can further empower them to expand their businesses and enhance their quality of life.” Approximately 49% of Fondo Esperanza's clients live below the poverty line, and 70% of them are located outside of Santiago, where a significant portion of Chile's GDP is concentrated. Fondo Esperanza primarily focuses on empowering women in vulnerable positions, with 79% of its loan portfolio allocated to women. Among these, 45% are considered heads of their families or economically responsible. Learn more: http://wrld.bg/jwEV50RxMEV #AccelerateEquality #IFCGender #FinantialInclusion #Microfinances IFC - International Finance Corporation | IFC Financial Institutions | Alfonso García Mora | Manuel Reyes-Retana | Vittorio Di Bello | Helena De La Torre | Rogerio Santos | Marie-Paule Claes, QRD® | Jose F Etchegoyen | Tomas Lo Prete | Teresa Keller Sarmiento | Mario Pavón Prat | Cristian Villemaine Dinamarca

We are pleased to announce that we have executed IDB Invest's first #BlendedFinance investment in #Bolivia!   Using funds from the Women Entrepreneurs Finance Initiative (We-Fi), IDB Invest will provide a monetary incentive of up to US$200,000 contingent on BancoSol meeting portfolio growth targets for Women-owned small and medium enterprises (WSMEs) in Bolivia, including in rural areas and the Bolivian #Amazon. ♀️   The blended financing comes on top of IDB Invest's support for BancoSol's issuance of Bolivia's first social gender bond, which raised approximately 205.8 million bolivianos (equivalent to US$30 million). The proceeds of the bond will be used to finance micro and small enterprises owned by women in Bolivia, with the goal of benefiting at least 4,500 such enterprises. IDB Invest played a key role in making the bond issuance possible by providing a partial credit guarantee of up to 50% of the bond's principal.    The thematic bond issue issuance is also a first for a private commercial bank in Bolivia and could serve as a catalyst for other social and environmental impact financial instruments in the country's capital markets.   Thank you all for the great team effort in bringing this over the finish line: Esteban Burbano de Lara, Sofía Ahualli, Elee Muslin, Enrique Palacios, Gabriela Mera, Diana Bogotá, Jimena Serrano, Sergio Díaz and Terence Gallagher. #WeFi #WomenEntrepreneurs #GenderEquality   https://lnkd.in/eMkWYgqB

Unpacking the Disparity: Why Africa Lags Behind Asia in Microfinance Microfinance, heralded as a potent tool for poverty alleviation and economic empowerment, has witnessed remarkable success stories worldwide. However, a notable gap persists between regions, with Africa often trailing behind Asia in both penetration and impact. 1/ Historical Context: - Colonial Legacy: Africa's colonial history left enduring legacies of underdeveloped financial systems and economic structures, impeding the growth of microfinance institutions (MFIs). - Late Start: Compared to Asia, where microfinance initiatives emerged earlier, Africa embarked on its microfinance journey relatively later, limiting its time to develop robust systems. 2/ Economic Factors: - Diversity in Economic Structure: Asia boasts a more diverse economic landscape, with vibrant small-scale enterprises and a thriving informal sector, providing a fertile ground for microfinance institutions to flourish. - Agricultural Dominance: Many African economies remain heavily reliant on agriculture, presenting unique challenges in extending financial services to rural populations due to seasonality and fluctuating incomes. 3/ Institutional Challenges: - Regulatory Environment: Variations in regulatory frameworks across African countries pose challenges for MFIs, hindering their scalability and sustainability. - Infrastructure Deficit: Africa's inadequate infrastructure, including limited access to electricity and internet connectivity, constrains the reach of microfinance services, particularly in remote areas. 4/ Socio-cultural Dynamics: - Trust and Social Capital: Asia often exhibits stronger social networks and community ties, facilitating the success of group-based lending models inherent in microfinance. - Gender Disparities: While both regions face gender inequalities, Africa's gender gap in financial inclusion remains pronounced, limiting women's access to microfinance services and impeding economic empowerment efforts. 5/Technological Advancements: - Asia's Leapfrogging: Rapid technological advancements in Asia have propelled the growth of innovative fintech solutions, enhancing the accessibility and efficiency of microfinance services. - Africa's Adoption Challenges: While Africa has shown increasing interest in leveraging technology for financial inclusion, hurdles such as digital literacy and infrastructure gaps slow down the pace of adoption. Africa's lag behind Asia in microfinance is a multifaceted issue.. Addressing this gap requires a holistic approach encompassing regulatory reforms, investment in infrastructure, promotion of social capital, and harnessing technology for inclusive financial services. By understanding and mitigating these challenges, Africa can unlock the transformative potential of microfinance, catalysing inclusive growth and poverty reduction across the continent. #fintechafrica #finanialinclusion #microfinance #microlending

Should we celebrate investments in microfinance that benefit low income women in rural areas? Yes. But, let's be louder about the status quo in India and many other countries that require women to be married or have a male sponsor to apply for loans. In 2023. Before patting ourselves on the back in the impact investment world about how much our funds are benefitting women. #bigeyeroll #impactinvesting #socialentrepreneurship #investinwomen #economicdevelopment

📢 LMDF is delighted to present Avanza Sólido, a microfinance institution set up in April 2011 by a group of Chiapanec entrepreneurs in Tuxtla Gutiérrez, Chiapas, Mexico. Their aim is to promote productive investment and savings among the population excluded from the banking system, by offering self-employment opportunities incorporating microfinance services in rural and urban areas. Currently present in six regions, including Chiapas, Tlaxcala, Tabasco, Veracruz, Queretaro and Hidalgo, Avanza Sólido aims to meet economic and social needs by providing quality financial products and services with a view to sustainability and profitability. This MFI mainly supports women (90% of their clients) by offering individual, group and SME loans averaging EUR 631. This allows to strengthen their clients economically by promoting access to financial services. Our partnership aims to create sustainable opportunities for women in Mexico. More about Avanza Sólido: https://lnkd.in/enHBz5T6 #Women'sEconomicStrengthening #ImpactingPartnership Avanza Sólido Mx

Congrats to IDB Invest and the Fundación Microfinanzas BBVA. IDB Invest and BBVA’s Banco de Ahorro y Credito Adopem S.A. announced the signing of an agreement for the issuance of a 5-year Gender bond to support women-owned small and medium enterprises (WSMEs) in the #DominicanRepublic. The planned Dominican peso 15 million private placement issuance is pending regulatory approval. The latest of multiple Gender bonds supported or sponsored by IDB Invest, the private sector arm of the Inter-American Development Bank, the issuance will serve as a good example of the structures employed by these instruments. The bond will be supported by the Women Entrepreneurs Finance Initiative (We-Fi), a development finance multi-stakeholder initiative that provides support for financial products focused on women entrepreneurs. The project will include an incentive for Banco Adopem to achieve annual goals for the number of overall WSME clients, as well as the number from migrant communities. IDB Invest has stated its intent for the issuance to be aligned with the Social Bond Principles of the ICMA - International Capital Market Association, and it will provide support to Banco Adopem in securing a second-party opinion. IDB #GenderBonds #GenderLensInvesting #WSMEs Mercedes Canalda Milagros Rivas Saiz Fabio Jose Fagundes Marisela Alvarenga Aitor Ezcurra Katharina Falkner-Olmedo BBVA Javier M. Flores Moreno Gema Sacristan

Starting as an action research project in Bangladesh in the 1970s, the Grameen Bank model aims to alleviate poverty and empower the marginalised poor through micro-credit. New research from CSI Swinburne’s Julie Tucker and Emma Riseley, commissioned by Grameen Australia, provides a detailed review of their microfinance initiative, Grameen Today. This initiative, based on the model, provides small business loans, financial training and support to low-income entrepreneurial women who wish to generate income through enterprising activity. The final report: ⏩ Takes a deep dive into the Grameen Bank model and its adaptation in Global North economies, specifically the UK and the US, and discusses the challenges of implementing it in Australia ⏩ Explores the financial, emotional, and social impacts of the Grameen Today Program on the entrepreneurial women who sought and obtained small loans to support their microenterprise ⏩ Provides key findings and lessons that other microfinancing initiatives can consider when starting or evolving their service 📄 Download the full report: https://lnkd.in/g4h4V-4v #microfinance #microcredit #socialeconomy #entrepreneurship #microenterprise #socialfinance #socialimpact #impactevaluation Swinburne University of Technology