Economic strengthening of women
The United Mexican States covers a vast area (1,972,550 km2) and a large population of over 126 million people.
The country has witnessed a robust Human Development Index (HDI) evolution over the past 30 years, nonetheless the GNI progression has stagnated. Poverty remains a multidimensional phenomenon: extreme poverty has declined over the past 25 years, still poverty head count is slightly higher than the regional peers.1 Income disparities between and within Mexican states are significant, where the household disposable income in northern regions can be three times higher than southern one.2
Additionally, while education is widespread, access to basic health services, especially for vulnerable women, remain a challenge that has been further acerbated by the impact of the COVID-19 pandemic. In light of the disparity faced in the country, LMDF has defined a specific strategy that strives to direct its intervention to those microfinance institutions mainly located in the most vulnerable and poverty affected regions as Chiapas and Oaxaca.
Since 2018, we have disbursed a total MXN 145m (approx. EUR 6.5m) to three different institutions:
- SOFIPA: The MFI was created in 2004 as a savings and credit cooperative by the initiative of a group of young entrepreneurs engaged on the fight against unemployment and youth migration to the USA. Besides financing, they also offer services like life insurance, financial education sessions and various initiatives towards communities;
- CONSERVA: This MFI focuses on displaced indigenous women affected by the armed conflict in the Selva Locandona area, in Chiapas.
- Avanza Sólido: For over 12 years, the institution has specialised in granting microcredits to rural and urban clients with a specific focus on women. As a microfinance institution, Avanza Sólido also promotes responsible and inclusive finance through non-financial services.
In our annual report as at 31/03/2023, we decided to present the microfinance institution Avanza Sólido in more detail and interviewed the Chairman of the MFI, Mr Oscar Cruz Torres.
Read the interview here
