MICROCAPITAL BRIEF: International Finance Corporation (IFC) Invests $2.5m in Mexican Company Mi Tienda to Support Microfinance for Micro, Small, and Medium-Sized Enterprises (MSMEs)

The International Finance Company (IFC), the investment arm of the World Bank, has signed a long-term agreement with Mexico’s Sistema Integral de Abasto Rural, known as Mi Tienda, to help the distribution center expand its operations to provide owners of micro, small, and medium-sized enterprises (MSMEs) with microcredit, insurance, and other financial services. IFC has agreed to provide USD 2.5 million in equity financing to support the expansion.

An IFC press release claims that the investment will “sustain the livelihoods of more than 25,000 rural retail store owners, most of whom are women” [1]. IFC Director for Global Manufacturing and Services, Dimitris Tsitsiragos, said, “This innovative retail project has an immense potential for a high development impact by reaching out to the rural population and enhancing access to finance for women entrepreneurs.” Mi Tienda has historically acted as a distribution center that provided products for sale at rural retail stores. With the funding from IFC, Mi Tienda will be able to expand its financial services program.

About the International Finance Corporation (IFC):

A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees as instruments of poverty alleviation. It “invests in companies and financial institutions in emerging markets” as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion [2].

About Mi Tienda:

Mi Tienda is a privately held company engaged in the rural distribution of food and other basic products in Mexico. It currently manages distribution to 620 stores located in rural zones [3]. Mi Tienda also offers affiliation and training programs to its customers, with the aim of increasing efficiency and productivity [1]. Mi Tienda does not report to the Microfinance Information Exchange (MIX).

By Eric McKay, Research Assistant

Bibliography:

[1] International Finance Corporation Press Release: ” IFC Invests in Mexican Distribution Company to Support Micro, Small, Medium Enterprises”, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=4234BD465A309445852576B90078F040

[2] MicroCapital Universe: International Finance Corporation. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

[3] Mi Tienda. http://www.mitienda.com.mx/

Additional Links:

MicroCapital Universe: Mi Tienda. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mi+Tienda

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