Oikocredit strengthens commitment to Mexican micro enterprises with € 2.1 million loan to Sofipa
Press releases
Four-year loan to new partner serves micro business in southeastern Mexico, principally women in underdeveloped rural locations.
Amersfoort, the Netherlands – Social impact investor and worldwide cooperative Oikocredit has provided a term loan of MXN 40 million (€ 2.1 million) to new partner Sofipa Corporation, SAPI de CV SOFOM ENR (Sofipa), headquartered in San Antonio de la Cal, Oaxaca, Mexico. With this loan, set to mature in November 2027, Oikocredit is increasing its support to Mexico’s micro enterprises with a view to improving lives across their communities.
Sofipa operates mainly in Mexico’s southeastern states of Oaxaca and Guererro. According to the country’s National Council for the Evaluation of Social Development Policy (Coneval), both Oaxaca and Guerrero have large rural areas with significant levels of poverty. Oikocredit’s loan will be used to support micro enterprises in marginalised communities with financial instruments to improve their economic standing.
Sofipa’s main product is group micro loans to women. Group micro loan lending, often referred to as village lending or group lending, is a microfinance strategy where small groups of individuals, often women, come together to access financial services collectively.
About 80% of Sofipa’s customers for group micro loans are based in rural areas, and 90% are women. The social impact of uplifting these two groups helps advance the UN’s Sustainable Development Goals 1, 5, 8 and 10.
About Oikocredit
Social impact investor and worldwide cooperative Oikocredit has nearly five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy.
Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.
Oikocredit finances more than 500 partners, with total outstanding capital of € 1,037.2 million (at September 2023). For more information, visit www.oikocredit.coop.
About Sofipa
Sofipa Corporation S.A.P.I. de C.V., SOFOM E.N.R.(Sofipa) is a private non-banking microfinance institution. It began operations in Oaxaca (southwest of Mexico) as a Consumer Cooperative Society in 2004. In 2010 it changed its status to a Savings and Loan Cooperative Society, refocusing its credit offering, mainly on group microcredit. In 2016, it adopted its current legal status.
Born out of the challenges that the southeast of Mexico has historically faced: high rates of poverty and marginalisation, lags in education and infrastructure, and limitations in basic services, which have hindered its development. In this context, financial inclusion has been one of the main challenges, aggravated by the shortage of specialised financial services for people with low incomes.
Thus Sofipa was born in February 2004, with the mission of developing innovative financial solutions that promote the productive activities of people with low incomes, thus contributing to regional development and financial inclusion of the unbanked sector of Mexico. If you wish to know more visit www.sofipa.org.mx.
