MICROCAPITAL BRIEF: Oikocredit Lends $13m to Microfinance Institution Fundación Génesis Empresarial of Guatemala

Oikocredit, a cooperative based in the Netherlands, recently funded a 4-year loan of EUR 9.6 million (USD 13.1 million) in favor of Guatemalan microfinance institution (MFI) Fundación Génesis Empresarial. Génesis CFO Jim López said that the loan will allow the MFI “to support more rural Guatemalans in advancing their development path and improving their quality of life” and “bring us closer to our strategic objective of serving 1 million clients.” The organization serves 216,000 clients, of whom around two thirds live in rural areas, three quarters are women and 40 percent earn less than the local poverty level.

In addition to lending for small businesses and household needs, Génesis offers “business development and financial literacy training, female empowerment training and health education.” The MFI has 151 branches, 4,000 rural service points and a portfolio of USD 248 million.

Founded in 1975, Oikocredit invests debt and equity in financial inclusion, agriculture and renewable energy in Africa, Asia and Latin America with the goal “to invest responsibly… to improve the quality of life of low-income people or communities in a sustainable way.” As of June 2021, Oikocredit has investments valued at EUR 835 million (USD 969 million) deployed via 529 partners worldwide.

By Adhya Singh, Research Associate

Sources and Additional Resources

Oikocredit press release
https://www.oikocredit.coop/k/en/n2613/news/view/345728/9049/new-oikocredit-investment-in-fundacion-genesis-empresarial-guatemala-s-leading-microfinance-institution.html

Fundación Génesis Empresarial homepage
https://genesisempresarial.org/

Oikocredit homepage
https://www.oikocredit.coop/

Génesis App
https://play.google.com/store/apps/details?id=com.fundaciongenesis&hl=es&gl=US

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