Foromic 2017, the international conference for microfinance in Latin America has taken place in Buenos Aires, Argentina. Foromic is a chance to meet other partners of the industry, strengthen current relationships, as well as build new ones. ADA and LMDF were both present in this year’s edition, and it enabled me personally to put faces on names and meet our MFIs (Micro Finance Institutions) partners in this part of the world.
This conference led to reaffirm the important role that microfinance plays in Latin America. The industry is very developed in some countries like Peru, and growing rapidly in others. This is promoting financial inclusion, a much-needed condition for growth and development as many people across the globe remain without access to financial services. As a keen reminder, in today’s financial capitalism, financial services when and if developed fairly and efficiently are an enabler for scaling up a business. It’s indeed economies of scale what can allow a farmer or micro entrepreneur to borrow in order to raise its production and increase its profit margins. This allows them to afford further education or health expenses, while of course growing its business and even creating employment. The importance of this industry is also reflected in the stakeholders present in Foromic. To name a few, other that investors and MFIs, the presence of the BID (Banco Interamericano de Desarrollo) and high-profile government figures (such as Argentina President Mauricio Macri) show the importance and relevance that microfinance has gained over the years.
Therefore, Foromic has reaffirmed the prominent role that plays microfinance in Latin America in promoting financial inclusion, and it has also confirmed the commitment of LMDF to being a part of this growing financial inclusion by partnering with local MFIs.
Assistant Investment Manager