The Agri-Business Capital Fund (ABC Fund) recently revealed that it has finalized $3 million loan to Colombia-headquartered Finamiga, which mainly focuses on lending to small farmers as well as independent workers.
As mentioned in the update, the lending brings the Fund’s total number of investments to 23 firms globally, as it continues its goal to address poverty-related issues, enhance the everyday lives and livelihoods of smallholder farmers while increasing opportunities for women and younger individuals.
Founded back in 2014, Finamiga has reportedly been one of the fastest-growing microfinance institutions in Colombia for the last few years.
Operating in 146 different municipalities, among which 38 are considered post-conflict zones, it has handed out over 30,000 loans, and has an outstanding gross portfolio of more than $13 million distributed in over 10,000 active clients.
The ABC Fund’s loan will offer additional liquidity and growth capital to Finamiga in order to enable it to disburse around 4,000 additional agricultural loans and about 1,000 vehicle loans for small farmers.
As a double bottom line institution, Finamiga specifically developed its products with a central focus on streamlining microbusiness and rural agriculture projects via productive credit loans.
Finamiga’s customers come from diverse socioeconomic backgrounds with 32% of them living in vulnerable conditions and around 9.8% in extreme poverty based on the Poverty Probability Index (PPI) Survey (which is applied in every loan).
Finamiga’s loans enables farmers and rural clients to boost their earnings by helping them gain efficiencies in transportation costs and distribution, allowing them to use the money as working capital to obtain supplies for their crops, and enhancing their capability to invest in land.
Jean-Philippe de Schrevel, Founder and Managing Partner of Bamboo Capital Partners stated:
“We are glad to continue and expand the ABC Fund’s mission to support smallholder farmers across South America, that may otherwise be excluded from the financial system. We are delighted to partner with Finamiga with the goal to help raise communities out of poverty.”
Felipe Mariño Rivera, Founder and CEO of Finamiga, remarked:
“We are pleased to receive this loan from the ABC Fund, giving us growth capital to consolidate our mission of strengthening microbusinesses and rural agriculture. We look forward to keep improving the live conditions of all of our clients, especially in the most remote regions of our beloved Colombia.”
