MICROCAPITAL STORY: MicroCredit Enterprises Invests $150k in Pro Mujer

CGAP (Consultative Group to Assist the Poor) recently reported that California-based MicroCredit Enterprises made a USD 150,000 investment in Latin American microfinance institution Pro Mujer.

Established in 2005, MicroCredit Enterprises is a nonprofit, US-based charity fund that makes investments of debt-capital in microfinance institutions. According to MIX Market, the microfinance information clearinghouse, MicroCredit Enterprises currently has USD 23.5 million invested in 26 MFIs in 13 countries across Africa, Asia, Europe and South America. The fund’s 2007 Annual Report reports total assets of USD 12.2 million (p. 4).

Pro Mujer is a nonprofit organization that focuses on micro-lending as well as business training and health support in the Latin American region. Incepted in 1990 with the establishment of Pro Mujer Bolivia, Pro Mujer currently operates in Argentina, Bolivia, Mexico, Nicaragua and Peru, serving a total of 74,259 clients. According to its 2006 financial statements, Pro Mujer held USD 39.4 million in total assets (p.18) and a gross loan portfolio of USD 26.9 million (p.20). As reported by MIX market, at year end 2006, Pro Mujer’s country units in Bolivia, Mexico, Nicaragua and Peru had return on assets of 4.92, 10.16, 10.57 and 14.86 percent, respectively.

This transaction is the latest in a series of recent investments in Pro Mujer. In September 2007, American International Group awarded Pro Mujer a grant of USD 1 million. In October 2007, Oikocredit, a Netherlands-based financial development institution, issued a USD 1 million loan. In March 2008, Calvert Social Investment Foundation, a non-commercial microfinance development fund, invested USD 650,000 in Pro Mujer. Stories covering these transactions may be found in this listing of recent MicroCapital stories on Pro Mujer.

By Ryan Benson, Research Assistant

Additional Resources:

The Consultative Group to Assist the Poor: Home

The Consultative Group to Assist the Poor: Recent list of transactions

MicroCredit Enterprises: Home

Pro Mujer: Home

Mix Market: MicroCredit Enterprises

Mix Market: Pro Mujer Bolivia

Mix Market: Pro Mujer Mexico

Mix Market: Pro Mujer Nicaragua

Mix Market: Pro Mujer Peru

MicroCapital Story: ING Review of American International Group (AIG) and Its Partnerships with ACCION, FINCA, MicroCred, Pro Mujer, and Pak-Oman Microfinance Bank, by Jennifer Lee, April 16, 2008.