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SOFIPA was created in 2004 as a savings and credit cooperative by the initiative of a group of young entrepreneurs engaged in the fight against unemployment and youth migration to the USA. They are in 4 of the 5 poorest Mexican’s states (Oaxaca, Guerrero, Puebla and Michoacán) where over 60% of the population lives below the poverty line.

97% of SOFIPA’s portfolio is disbursed according to the community bank methodology with groups of 8 to 30 people. The average disbursed loan is of EUR 358. The MFI also offers life insurance to its clients via an agreement with the local insurance company ASERTA, financial education sessions, and various initiatives towards the community.

Their experience shows that they have a proactive management and that they can face challenges and potential contextual changes. The MFI has a great potential for growth and expansion, and the introduction of individual loans could be a competitive advantage compared to the competition.

SOFIPA targets micro-entrepreneurs and individual entrepreneurs, financing more than 38,000 micro-entrepreneurs (of which 98.8% are women and with huge presence in rural areas) through its 43 agencies.

SOFIPA represents an MFI with a good growth potential and has a profile in line with LMDF vision and mission.