To promote innovative financial products sustaining the sector
REDCAMIF and the members of the national networks
In Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and the Dominican Republic, over 40% of the population lives below the poverty line. Despite the networking of microfinance institutions (MFIs), only 22% of the 5.5 million micro-entrepreneurs in the region have access to financing to grow their businesses. The penetration rate remains low in urban-peripheral and rural areas.
In these countries, MFIs rely on national networks for the extension of their services. The networks play a key role in developing inclusive finance and in bringing about a more favourable political environment.
The national networks themselves are grouped around REDCAMIF, a regional microfinance network which today represents seven national networks: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and the Dominican Republic. Together, these seven networks gather 137 MFIs and serve more than a million and a half clients.
The REDCAMIF network has received technical and financial support from ADA since 2011. The projects we developed with REDCAMIF are then expanded to the seven national networks, which in turn, expand them to their member MFIs.
REDCAMIF: multiplied impact
The joint project ADA-REDCAMIF for the expansion of inclusive finance rests upon three fundamental pillars:
Based on a participatory approach, and making use of information technology, the project also aims to improve exchanges between the different actors and members of the REDCAMIF network.
By providing technical and financial assistance to REDCAMIF, ADA enhances the seven national networks’ relevance and impact, as well as that of the 133 MFIs accounting for 40% of the portfolio invested in rural areas, thus positively affecting 1.2 million micro-entrepreneurs, 59% of which are women.
Latest news - August 2016
The MFI ECLOF from Dominican Republic is one of the participant MFIs in the pilot project of new products development led by ADA-REDCAMIF.
ECLOF adapted and implemented its new housing loan with experts from ADA-REDCAMIF in November 2015. Less than a year later, they already got results that exceed the goals set by the pilot. A success achieved thanks to a product focused on the needs of the local population, the extensive work of the team involved and an effective communication strategy.
ECLOF called its new credit "MejoraFácil". It is granted for the repair or improvement of housing and ranges from minor repairs to major improvements. Moreover, MejoraFácil comes with a service of technical assistance in construction. To provide this service, dedicated teams were set up in every national network, or directly in the MFI that provides housing credit, to advise customers in the technical aspects of their project (selection of materials, suppliers, property rights, etc.) and to ensure that the work is carried out following high international standards. This technical support in construction is an innovation that guarantees the success of this new credit.
José Luis González Renderos, Vice-President of REDCAMIF
"The framework agreement signed with ADA allows REDCAMIF to develop innovative solutions and disseminate these new products through the networks of each country. In this context, ADA is a key strategic partner to efficiently develop the network."
Jose Luis Gonzalez Renderos, Vice-President of REDCAMIF
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