Consejo de Asistencia al Microemprendedor (CAME), a Mexican microfinance institution, recently secured a four-year loan of MXN 300 million (USD 15 million) from IDB Invest, a member of the Inter-American Development Bank (IDB) Group. CAME’s services include deposits, loans, payments and insurance for microentrepreneurs as well as small and medium-sized enterprises (SMEs). Its loan products include group and individual loans ranging from MXN 3,000 (USD 150) to MXN 1 million (USD 50,000), with terms of 24 weeks to three years.
In support of the wholesale loan, IDB Invest will provide advisory services to CAME to help introduce “a social bond with a gender focus.” This initiative is part of the Women Entrepreneurs Finance Initiative (We-Fi), which was founded in 2017 and is “hosted” by the World Bank Group. We-Fi supports women entrepreneurs in emerging markets with access to finance, training, mentoring and markets. It also works to reduce legal and regulatory constraints for women in business. During the 2020 fiscal year, it disbursed approximately USD 300 million to support women in 60 countries.
Founded in 1993, CAME is a Mexican microfinance institution (MFI) that has served approximately 387,000 borrowers and savers via 239 branches in 31 states. As of 2020, the MFI reports assets of MXN 3.4 billion (USD 170 million), a gross loan portfolio of MXN 2.4 billion (USD 120 million) and MXN 1.1 billion (USD 58 million) in client deposits.
The IDB Group comprises IDB; the Inter-American Investment Corporation, which uses the trade name IDB Invest; and the Multilateral Investment Fund, which uses the trade name IDB Lab. Headquartered in the US city of Washington, IDB Group has 48 member countries, including 26 that are located in its region of focus, Latin America and the Caribbean. Established in 1959, IDB seeks to promote “environmentally friendly” economic development via improved health, education and infrastructure. During 2020, it reports having issued USD 14 billion in loans and grants, ending the year with assets of USD 152 billion.
IDB Invest focuses on promoting economic development through projects in agriculture, financial inclusion, sustainable energy and transportation. As of June 2020, IDB Invest had USD 13 billion in assets under management, deployed via 385 clients in 25 countries. Established in 1993, IDB Lab is an “innovation lab” that tests models for facilitating inclusive growth. During the third quarter of 2020, IDB Lab approved 16 projects with a total value of USD 9.5 million.
By Arin Atluri, Research Associate
Sources and Additional Resources
IDB Invest press release
https://idbinvest.org/en/news-media/idb-invest-promotes-financial-inclusion-mexico-through-support-came
CAME homepage
https://www.came.org.mx/
CAME 2020 financials
https://www.came.org.mx/libs/inher/pdf/inversionistas/informacion-financiera/2020/Estados-Financieros-4T.pdf
IDB Invest homepage
https://idbinvest.org/
IDB Group homepage
https://www.iadb.org/
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