MICROCAPITAL STORY: enConfianza Microfinanciera Signs a “Technical Assistance Contract” with Accion International to Provide Financial Services to a Broader Audience of Micro-entrepreneurs in Mexico

enConfianza S.A. de C.V. SOFOM ENR (enConfianza Microfinanciera) recently announced that they have signed a “Technical Assistance Contract” with Accion International to provide financial services to a broader audience of micro-entrepreneurs in Mexico.  According to Accion, the microfinance company based in Mexico City (enConfianza Microfinanciera) will receive consultation on best practices in the areas of credit methodology, risk management, project and process management, human resources and organization development.  Mauricio Hubard, president and CEO for enConfianza expects that the partnership will allow the microfinance company to create new products and trends, while developing an advanced business model for the microfinance industry.  No additional information regarding the terms of the contract are provided.

enConfianza Microfinanciera was established in 2007 and offers various working capital products such as individual loans, referential loans, small and medium business loans, and lines of credit for small and medium businesses to clients that run microenterprises in Mexico City, Mexico State, Morelos, Queretaro, Hidalgo and Guerrero.  No additional information regarding enConfianza Microfinanciera’s financials is available.  enConfianza Microfinanciera does not report to the Mix Market.

Accion International, is a private, non-profit organization founded in 1961.  While ACCION has directly provided loans to entrepreneurs in countries like the United States, it primarily partners with 35 microfinance organizations throughout Latin America, the Caribbean, Asia and Africa, and serves U.S. micro-entrepreneurs through the U.S. ACCION Network.  Micro-lenders are associated with Accion, a member of their network.  Accion’s current “network” model/organizational structure is as such that it includes some loose members as well as closely held subsidiaries (since some networks are actually opening branded lending operations).  Thus, Accion has become a leader in establishing large, branded microbanks.  For a breakdown of ACCION’s key statistics and those of their partners/network, please visit here.

In 2008, ACCION and its partners served over 3.7 million active borrowers, and since 1998 has loaned USD 23.4 billion to more than 6.2 million people.

According to Accion’s 2007 annual report, net revenues for 2007 were USD 324.9 million and total 2007 expenses, USD 27 million. Total current assets stood at USD 140.4 million and total long term assets at USD 212.2 million. Total liabilities and net assets amounted to USD 352.6 million. Accion saw an increase of USD 297.8 million in net assets in 2007. Accion Investments reported total microfinance investments of USD 50 million and a total investment portfolio of USD 22.92 million in 2007. Financial Indicators for Accion partners during the last quarter of 2008 can be found here.

Recent notable microfinance funding by Accion International includes a USD 4.2 million investment in ParaLife, a Swiss micro-insurance holding company and LeapFrog Investments, a USD 100 million micro-insurance investment fund headquartered in Mauritius. 

MicroCapital recently reported The White House has nominated the president and CEO of Accion International, Ms. Maria Otero, to assume the position of Under Secretary of Democracy and Global Affairs in the US Department of State. Although the Senate Foreign Relations Committee has yet to approve the nomination, Ms. Otero has indicated that she will accept the position should her nomination be successful. Ms. Otero has been profiled in MicroCapital’s Who’s Who in Microfinance series in May 2007. Her position at ACCION International will be filled temporarily by Ms. Catherine Quense, Chief Administrative Officer and Chief Deputy, while a committee searches for Ms. Oteros successor.

To read more MicroCapital stories about Accion International, please see here.  

By Zoran Stanisljevic

Additional Resources:

enConfianza Microfinanziera: Press Release

Accion International: ACCION and enConfianza Microfinanciera Partner to Serve More Microentrepreneurs in Mexico

Accion International: Homepage

MicroCapital Story: ACCION International’s CEO Maria Otero To Be United States Under Secretary of Democracy and Global Affairs

MicroCapital Story: ACCION Invests $4.2m in Two Microfinance Companies: Mauritius Based Leapfrog Investments Ltd and Swiss Based Paralife, Invests in Initiatives Aimed at Moving Microfinance ‘Beyond Credit’

 

 

 

 

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