MICROCAPITAL BRIEF: Deetken Impact, Pro Mujer Raise $1.3m from USAID for Ilu Women’s Empowerment Fund to Deploy in Latin America, Caribbean

Canada-based asset management company Deetken Impact and US-based nonprofit women’s development organization Pro Mujer recently announced they have raised USD 1.3 million from the US Agency for International Development (USAID) for the Ilu Women’s Empowerment Fund, which is active in Latin America and the Caribbean. Deetken plans to leverage a portion of the funding to attract private investment, adding a total of USD 5 million to the volume of Ilu. This segment of funding is slated for lending to assist small and medium-sized enterprises (SMEs) in adjusting to the COVID-19 pandemic.

The USAID funding also includes a technical assistance component intended to enable “gender-smart business practices to improve their business performance, attract more capital… and advance gender equality and opportunities for women in the communities where they operate.” The third element of the project is to support “an open source toolkit,” case studies and workshops promoting “the business case for gender lens investing and gender-smart business practices in the region.”

Launched in 2016, Ilu deploys investments intended to progress women’s entrepreneurship and other forms of women’s economic empowerment. This includes efforts to “promote women in leadership and governance, products and services that meet the needs of women and girls, gender-sensitive value chains and equity.” The fund’s portfolio holdings report generating 200 GWh of sustainable energy, enough to power approximately 64,000 households. During 2020, Ilu supported the delivery of health care to 280,000 clients, training in financial literacy to 340,000 clients, and loans averaging USD 6,800 at interest rates near 24 percent that created 4,600 jobs. As of 2020, Ilu has secured commitments of USD 28 million.

Deetken primarily invests in businesses seeking financial as well as social or environmental returns in Latin America and the Caribbean. As of 2019, the firm manages or co-manages assets valued at approximately USD 100 million.

Established in 1990, US-based Pro Mujer is a nonprofit women’s development organization operating in Argentina, Bolivia, Guatemala, Mexico, Nicaragua and Peru. Its focus is to provide access to financial, health and educational services to women and their families. During 2020, Pro Mujer delivered financial services to 195,000 clients, disbursing loans totaling USD 202 million. During the same year, approximately 90,000 people accessed the nonprofit’s online workshops, and Pro Mujer provided 126,000 health interventions, including 11,300 cancer screenings.

Founded in 1961, USAID is a government agency that provides international economic and humanitarian assistance. It is active in areas such as economic growth, agriculture, trade, health, democracy, conflict prevention and humanitarian assistance. During its 2020 fiscal year, USAID reported a net cost of operations of USD 13.7 billion in approximately 100 countries.

By Harriet Ritchie, Research Associate

Sources and Additional Resources

Deetken press release
https://deetkenimpact.com/blog/deetken-impact-and-pro-mujer-receive-us1-3m-from-usaid-to-advance-gender-equality-and-promote-gender-smart-practices-in-smes-in-latin-america/

Ilu homepage
https://iluwomensempowermentfund.com/

Pro Mujer homepage
https://promujer.org/

Pro Mujer 2020 annual report
https://promujer.org/content/uploads/2020/12/ANNUAL_REPORT_2020_final.pdf

USAID homepage
https://www.usaid.gov/

USAID 2020 financial report
https://www.usaid.gov/sites/default/files/documents/USAID_FY2020_AFR-508.pdf

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