MICROCAPITAL STORY: Oikocredit of the Netherlands Invests $5m in Central American Microfinance Institutions: Asociación Pueblos en Accion Comunitaria (APAC), Cooperativa Mixta Mujeres Unidas Limitadas (COMIXMUL), Financiera Summa, S.A., Asociación Civil Guatemalteca Para el Desarrollo Integral (ASDESARROLLO), Fundación Hondureña para el Desarrollo de la Microempresa (FUNDAHMICRO), Asociación Cooperativa Dimas Rodriguez de R.L, Agencia de Desarrollo Economico Local (ADEL)

The Consultative Group to Assist the Poor (CGAP) recently reported Oikocredit, a Dutch cooperative investment fund, invested nearly USD 5 million in seven microfinance institutions in Central America. Asociación Pueblos en Accion Comunitaria (APAC) of Nicaragua, Cooperativa Mixta Mujeres Unidas Limitadas (COMIXMUL) of Honduras and Financiera Summa, S.A., of Guatemala received the largest loan investments of USD 1 million each. Microfinance institution Asociación Civil Guatemalteca Para el Desarrollo Integral (ASDESARROLLO) of Guatemala received a loan of USD 725,000, and Fundación Hondureña para el Desarrollo de la Microempresa (FUNDAHMICRO) of Honduras was loaned USD 700,000 by the Dutch fund. El Salvadorian institutions, Asociación Cooperativa Dimas Rodriguez de R.L and Agencia de Desarrollo Economico Local (ADEL) were given USD 200,000 and 329,000 respectively.

Oikocredit is a Dutch cooperative investment fund comprised of church groups, social support groups, and individual investors. Established in 1975, Oikocredit invests in MFIs, small businesses and cooperatives with 637 projects worldwide in 37 focus countries. Oikocredit’s investments are largely successful, with loan loss of less than ten percent, throughout their 33 years of activity. The fund has USD 455.8 million in assets as of December 2006, with USD 131.7 million allocated for investments in microfinance institutions in the next twelve months.

Fundación Hondureña para el Desarrollo de la Microempresa (FUNDAHMICRO) is a non-profit NGO established in 2000 based in Honduras, with a mission to provide financial service and technical assistance to entrepreneurs who do not have access to the formal financial system, aiming to improve income and living conditions of the poor. The institution has nearly 11 thousand active borrowers of which 86 percent are women. FUNDAHMICRO has a current gross loan portfolio of USD 3.8 million with total assets of USD 5 million. The institution’s return on equity (ROE) was at 36.25 percent and their return on assets (ROA) was 5.8 percent as of the end of 2007.

Cooperativa Mixta Mujeres Unidas Limitadas (COMIXMUL) was founded in 1986 in Honduras. The institution provides savings and loan services for members with a focus on poverty reduction, especially targeting poor women in urban and rural areas. Currently they have nearly 18,000 members with total assets of USD 12 million. Information on their return on assets and return on equity was not available.

Financiera Summa, S.A. is a Guatamala based microfinance institution. As of 2006, they had a loan portfolio of USD 4.8 million with total assets of USD 6.7 million. Their return on assets (ROA) was at negative 0.68 percent.

Asociación Pueblos en Accion Comunitaria (APAC) is a Nicaragua-based microfinance institution founded in the early 1990’s. The institution supports local farming businesses through self-help groups aimed at strengthening the local rural economy. Financial information was not available for this institution.

Agencia de Desarrollo Economico Local (ADEL) is a network of 15 microfinance institutions in El Salvador, Nicaragua, Guatemala, Honduras and Costa Rica. First established in 1991, the network seeks strengthen the economy through mobilizing local resources in a cooperative effort of poverty reduction in Central America. Financial information was not available.

Asociación Civil Guatemalteca Para el Desarrollo Integral (ASDESARROLLO) is a microfinance institution based in Retalhuleu, Guatemala. Their mission is to strengthen and consolidate the Central American microfinance sector. Further information was not available.
Asociación Cooperativa Dimas Rodriguez de R.L is a microfinance institution based in El Salvador. It is a project of the Inter-American Development Bank (IDB). Further information was not available.

By Melissa Duscha

Additional Resources:

Agencia de Desarrollo Economico Local (ADEL)

Asociación Civil Guatemalteca Para el Desarrollo Integral (ASDESARROLLO)

Asociación Pueblos en Accion Comunitaria (APAC)

The Consultative Group to Assist the Poor (CGAP)

The Consultative Group to Assist the Poor (CGAP) recent list of transactions

Cooperativa Mixta Mujeres Unidas Limitadas (COMIXMUL)

Financiera Summa, S.A.

Fundación Hondureña para el Desarrollo de la Microempresa (FUNDAHMICRO)

Inter-American Development Bank (IDB)

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Oikocredit:http://www.oikocredit.org/site/en/index.phtml?p=newhome

Oikocredit Active Portfolio: http://www.oikocredit.org/documents/projects/PortfolioUK.pdf

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