Oikocredit strengthens commitment to Mexican micro enterprises with € 2.1 million loan to Sofipa

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.

Francisco Hernández Díaz, Director General of Sofipa, said, “We are excited and proud to announce our new alliance with Oikocredit. This collaboration represents a significant step in our mission to bring financial inclusion to low-income individuals in southeastern Mexico. Together, we will focus on promoting productive activities and substantially improving the quality of life for many families.”

Fernando Gonzalez, Investment Officer at Oikocredit, expressed the social impact of both institutions: “Sofipa is a microfinance institution that takes pride in the work it does, with a strong culture and work ethic extending across the organisation. It provides an impressive level of coverage in marginalised areas and field agents must cover large distances to reach their customers. This new partnership helps Oikocredit accomplish our mission of creating social impact and fulfilling our commitment to the communities we serve.”

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.

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Note for editors

For more information or to request an interview, please contact: Viviana Cordero, Communications Business Partner, Oikocredit International, telephone: +31 33 422 4040, email: vcordero@oikocredit.org.