MICROCAPITAL BRIEF: ABC Fund Lends $3m to Finamiga to Fund 5k Vehicle, Agricultural Loans for Women in Colombia

The Luxembourg-based Agri-Business Capital (ABC) Fund recently announced it has lent USD 3 million to Finamiga, a Colombia-based lender to rural, small-scale farmers and independent workers, most of whom are women. Finamiga plans to use the wholesale loan to fund 4,000 retail agricultural loans and 1,000 motorcycle loans. Rather than disbursing cash, Finamiga generally arranges for each client to receive his or her funded asset or supplies – such as fertilizer, agricultural equipment or land – at the beginning of the loan cycle.

Finamiga was founded in 2014 as a unit of the Colombia-based “inclusive microfinance institution” UNI2Microcrédito. UNI2Microcrédito provides microinsurance as well as lines of credit for micro-, small and medium-sized enterprises. As of 2022, Finamiga reports a gross loan portfolio of USD 13 million. It operates eight branches serving approximately 10,000 active clients – many of whom live in post-conflict regions.

The goal of ABC Fund is to improve the lives of small-scale farmers, women and youth in low- and middle-income countries. It is managed by Luxembourg-based Bamboo Capital Partners, with advisory services provided by Ghana-based Injaro Investments and technical assistance from the Dutch NGO Agriterra. In addition to technical assistance, the fund provides loans and equity to farmer organizations and SMEs as well as indirect funding through financial intermediaries. It has 23 outstanding investments in 10 countries as of 2022.

By Ben Greissman, Research Associate

Sources and Additional Resources

Bamboo Capital Partners press release
https://bamboocp.com/abc-fund-injects-usd-3-million-into-microfinance-lending-in-colombia/

UNI2microcredito homepage
https://uni2.com.co/

Finamiga news
https://uni2.com.co/tag/finamiga/

ABC Fund description
http://agri-business-capital.com/about.html

Injaro Investments description
https://www.injaroinvestments.com/about

Agriterra about partnership with ABC Fund
https://www.agriterra.org/ABC_fund/

Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.