Belgium-based Incofin Investment Management and the government-owned Investment Fund for Developing Countries, which is known by its Danish acronym IFU, recently invested USD 2.1 million each in Ningxia Dongfang Huimin Microfinance Corporation Limited to further Huimin’s provision of financial services to female farmers in China’s Ningxia province. Incofin placed the investment through its agRIF fund, which is investing in financial services related to the agriculture sector over a 10-term term ending in 2024. The percentage of shares taken by the investors has not been released.
Huimin was founded in 1996 with the aim of providing women with microcredit to combat poverty in rural China. In 2016, the microlender partnered with the US-based Metropolitan Life Insurance Company to roll out digital financial services that enable Huimin customers to perform cashless transactions, including via point-of-sale devices. As of 2020, Huimin has a client base of 14,000, 11 branches and an average loan size of USD 3,500.
Founded in 2001, Incofin is a for-profit firm that seeks “to promote inclusive progress.” As of December 2019, it has 320 investees in 66 countries, mostly active in financial inclusion and agriculture. Incofin’s portfolio is valued at USD 1 billion and comprises the following funds: agRIF, BRS Microfinance Coop Fund, Fairtrade Access Fund, Fonds pour l’Inclusion Financière en République Démocratique Congo (FPM), Incofin CVSO, Invest in Visions, Rural Impulse Fund (RIF) II, Volksvermogen and a loan portfolio of vdk bank.
IFU, which is owned by the government of Denmark, was founded in 1967 to advise Danish companies investing in developing countries as well as to finance projects intended to enhance economic and social development in Africa, Europe and Latin America. Its investment portfolio totals DKK 23 billion (USD 3.8 billion) with investments spanning 1,300 companies in 100 countries as of 2020.
By Eha Joshi, Research Associate
Sources and Additional Resources
Incofin press release
https://www.incofin.com/incofin-im-becomes-a-shareholder-of-huimin
Incofin homepage
https://www.incofin.com
IFU homepage
https://www.ifu.dk
Center for Financial Inclusion article on Huimin
https://www.centerforfinancialinclusion.org/gender-dynamics-in-rural-china-illuminate-the-need-for-financial-education
Wall Street Journal article on Huimin
https://partners.wsj.com/metlife/multipliers/articles/testing-the-digital-waters
MetLife press release on joint initiative with Huimin
https://www.metlife.com/about-us/newsroom/2016/march/metlife-foundation-and-positive-planet-launch-the-digitalization
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