MICROCAPITAL BRIEF: Accion Buys 9% of Microfinance Institution CrediConfia of Mexico for $1.9m

Accion, a US-based nonprofit organization, recently made an equity investment of USD 1.9 million in CrediConfia, a microfinance institution (MFI) providing financial services to microentrepreneurs and low-income households in rural and semi-urban areas of east-central Mexico. As a result of the investment, Accion obtained a nine percent stake in CrediConfia, a seat on the MFI’s board of directors and a three-year contract to provide governance, management and technical support to the MFI. Accion aims to share its credit technology in order to help accelerate CrediConfia’s growth, to expand and improve the scope of its products and to boost loan quality and profitability.

CrediConfia currently serves 21,500 economically active poor people through 25 branches located in Mexico City and the states of Puebla, Hidalgo and Michoacán. As of 2010, CrediConfia reported to MIX (Microfinance Information Exchange) assets of USD 8 million, a gross loan portfolio of USD 5 million, return on assets of -46 percent and return on equity of -69 percent. CrediConfia does not accept deposits. As of 2010, Accion’s network serves 3.18 million active clients in 22 countries and has an active loan portfolio of USD 3.81 billion.

By Mihaela Grindeanu, Research Associate

About CrediConfia: CrediConfia is a microfinance organization based in Mexico. CrediConfia provides financial services to microentrepreneurs and low-income households in rural and semi-urban areas of east-central Mexico CrediConfia currently serves 21,500 economically active poor people through 25 branches located in Mexico City and the states of Puebla, Hidalgo and Michoacán. As of 2010, CrediConfia reported to MIX (Microfinance Information Exchange) assets of USD 8 million, a gross loan portfolio of USD 5 million, return on assets of -46 percent and return on equity of -69 percent. CrediConfia does not accept deposits.

About Accion: Accion is a private, US-based nonprofit organization with the mission of alleviating poverty by providing financial products such as microenterprise loans and business training. Accion was founded in 1961 and issued its first microloan in 1973 in Brazil. Accion’s partner microfinance institutions provide loans to men and women entrepreneurs in the US and 21 countries in Latin America, Asia and Africa. As of 2010, Accion’s network serves 3.18 million active clients and has an active loan portfolio of USD 3.81 billion.

Sources and Additional Resources:

Communication sent to MicroCapital by Accion

MicroCapital.org story, July 5, 2012: “MICROCAPITAL BRIEF: Accion to Launch $60m Frontier Investment Fund, Invest in Indian Microfinance, Other Ventures”, https://www.microcapital.org/microcapital-brief-accion-to-launch-60m-frontier-investment-fund-invest-in-indian-microfinance-other-ventures/

MicroCapital.org story, March 9, 2012: “MICROCAPITAL BRIEF: Federación de Nacional de Cooperativas de Ahorro y Crédito (FENACOAC), World Council of Credit Unions (WOCCU) Support Microfinance in Guatemala, Mexico with $4m Rural Technology Cooperative Program”, https://www.microcapital.org/microcapital-brief-federacion-de-nacional-de-cooperativas-de-ahorro-y-credito-fenacoac-world-council-of-credit-unions-woccu-support-microfinance-in-guatamala-mexico-with-4m-rural-technology-co/

MicroCapital Universe Profile: Accion, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Accion

MicroCapital Universe Profile: CrediConfia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CrediConfia

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