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.
We are glad to announce that in December 2016 ADA invested USD 100.000 in Servicios Financieros inclusivos S.A, (SERINSA S.A.) and subsequently joined their Board of Directors. The purpose of this investment is to facilitate access to quality microinsurance products for hundreds of micro-entrepreneurs and is part of a wider partnership between ADA and REDCAMIF (the Microfinance Network of Central America and the Caribbean) that dates back to 2007. Through this partnership, ADA has supported different projects, including the microinsurance project co-financed by the IADB (Inter-American Development Bank). ADA will support SERINSA in the mid-term and will seek to disengage after a period of 5 years. This investment is part of ADA’s ongoing commitment to improve the inclusive finance sector around the globe and in this case, specifically in Central America.
SERINSA was the result of REDCAMIF's microinsurance initiative that spun off to be converted into a knowledge management and service provider company. Currently, it focuses its activities on the promotion and development of microinsurance through the national networks affiliated to REDCAMIF. SERINSA was created in 2016 and REDCAMIF is its main shareholder.
This investment as well as all support provided to REDCAMIF and SERINSA by ADA have been made possible thanks to the constant support of the Directorate for Development Cooperation and Humanitarian Affairs of Luxembourg.
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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