Spain’s Gawa Capital, manager of the public-private Huruma Fund, recently disbursed the fund’s first investments in Mexico, lending EUR 12 million (USD 12 million) to Mega and EUR 3.6 million (USD 3.6 million) to ProCredito, financial services providers whose clients include many agricultural small and medium-sized enterprises (SMEs). Both investees are active in lending intended to minimize the effects of climate change, such as for water-efficient irrigation systems. The goals of the investments from Huruma include “creating jobs that will indirectly benefit over 7,500 families in Mexico” including by building “strategic alliances between fruit exporters and small producers.”
Grupo Mega was founded in 2003 and provides leasing, factoring and loans to SMEs active in sectors such as farming, tourism, technology, transportation and industrial production. Its products include options specifically designed for women. As of June 2022, it reported quarterly net income of MXN 55 million (USD 2.8 million) on assets of MXN 21 billion (USD 1.1 billion). Its agriculture portfolio is valued at EUR 165 million (USD 165 million).
ProCredito, which focuses on lending and factoring for “semiformal SMEs in the transport and agriculture industries,” reports an agriculture portfolio of EUR 4.5 million (USD 4.5 million) as of 2022. Since its founding 2007, the firm has issued 12,000 loans and grown to offer services via eight branches.
The goal of Huruma is to improve financial access for small-scale farmers in Africa, Asia, Latin America and the Caribbean. Huruma is led by Spain’s Compañia Española de Financiación del Desarrollo (COFIDES), a government-backed development finance institution. The fund has a volume of EUR 120 million (USD 120 million), of which three quarters is from private investors. As of April 2022, it had deployed EUR 45 million (USD 45 million) in debt and equity investments.
Sources and Additional Resources
Huruma press release
https://fondohuruma.com/en/the-huruma-fund-helps-bridge-the-financing-gap-of-agriculture-smes-in-mexico/
Mega homepage
https://www.gfmega.com
ProCredito homepage
https://procredito.com.mx
Gawa Capital homepage
https://www.gawacapital.com
More news from MicroCapital on Huruma
https://www.microcapital.org/?s=huruma
More news from MicroCapital on Mexico
https://www.microcapital.org/?s=mexico
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