As part of their newly established Energy Inclusion Initiative, Luxembourg-based nonprofit organization Appui au Développement Autonome (ADA) and Germany-based partnership MicroEnergy International (MEI) have recently teamed up with Peruvian microfinance institutions (MFIs) Fondo de Desarrollo Regional (FONDESURCO) and Caja Municipal de Ahorro y Crédito de Huancayo (CMAC Huancayo) to deliver “green energy solutions” for microentrepreneurs. Under the agreement, the MFIs will offer loans to their clients for the purchase of items that include energy-efficient ovens and solar-powered water heaters and coffee dryers. The goal of the project is to support up to 10,000 Peruvian entrepreneurs by 2014. Financial terms of the arrangement have not been disclosed.
As of December 31, 2010, FONDESURCO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 23.4 million, a gross loan portfolio of USD 17.2 million, return on assets (ROA) of 2.58 percent, return on equity (ROE) of 16 percent and approximately 10,000 active borrowers. As of June 30, 2011, CMAC Huancayo reported to MIX total assets of USD 319 million, a gross loan portfolio of USD 266 million, ROA of 3.2 percent, ROE of 19 percent and approximately 125,000 borrowers.
By Rohan Trivedi, Research Associate
About Appui au Développement Autonome (ADA):
Founded in 1994, Appui au Développement Autonome (ADA) is a nonprofit organization based in Luxembourg. ADA’s activities include developing new financial products, assisting in the capacity building of microfinance institutions (MFIs) and improving information on and awareness of microfinance activities. As of December 31, 2009, ADA reported total assets of EUR 3.7 million (USD 5.4 million).
About MicroEnergy International (MEI):
MicroEnergy International (MEI) is a partnership between Results Germany, a microcredit advocacy organization, and the Technical University of Berlin. MEI works with microfinance institutions (MFIs) and energy service providers to research, develop and finance affordable energy products for low-income people. Financial information for MEI is not currently available.
About Fondo de Desarrollo Regional (FONDESURCO):
Fondo de Desarrollo Regional (FONDESURCO) is a microfinance institution (MFI) that was established in Peru in 1994. The organization’s mission is to improve the economic status of poor individuals living in remote villages through the provision of microcredit. As of December 31, 2010, FONDESURCO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 23.4 million, a gross loan portfolio of USD 17.2 million, return on assets (ROA) of 2.58 percent, return on equity (ROE) of 16 percent and approximately 10,000 active borrowers.
About Caja Municipal de Ahorro y Crédito de Huancayo (CMAC Huancayo):
Caja Municipal de Ahorro y Crédito de Huancayo (CMAC Huancayo) is a Peruvian microfinance institution (MFI) that provides loans, insurance and savings services. As of June 30, 2011, CMAC Huancayo reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 319 million, a gross loan portfolio of USD 266 million, return on assets (ROA) of 3.2 percent, return on equity (ROE) of 19 percent and approximately 125,000 borrowers.
Sources and Additional Resources:
[1] ADA Press Release: “Microfinance meets green energy efforts”, http://www.microfinance.lu/fileadmin/media/Documents/MicroEnergy/ADA_PR_EN_TheEnergyInclusionInitiative_DEF.pdf
MicroCapital.org story, February 14, 2011: “MICROCAPITAL BRIEF: Global Partnerships (GP) Loans Total of $3m to Crediflorida and Fondo de Desarollo Regional (Fondesurco) of Peru, Fundacíon Realidad Asociación Civil (FRAC) of Mexico and Fundacíon para el Desarollo Microempresarial (D-Miro) of Ecuador”, https://www.microcapital.org/microcapital-brief-global-partnerships-gp-loans-total-of-3m-to-crediflorida-and-fondo-de-desarrollo-regional-fondesurco-of-peru-fundacion-realidad-asociacion-civil-frac-of-mexico-and-fundacio/
MicroCapital Universe Profile: Appui au Développement Autonome (ADA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Appui+au+Développement+Autonome+%28ADA%29
MicroCapital Universe Profile: MicroEnergy International (MEI), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroEnergy+International+%28MEI%29
MicroCapital Universe Profile: Fondo de Desarollo Regional (FONDESURCO), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fondo+de+Desarrollo+Regional+%28Fondesurco%29
MicroCapital Universe Profile: Caja Municipal de Ahorro y Crédito de Huancayo (CMAC Huancayo), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Caja+Municipal+de+Ahorro+y+Cr%C3%A9dito+de+Huancayo+%28CMAC+Huancayo%29
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