MicroVest Invests in Ecuadorian NGO to Support Women-owned MSMEs, Drive Financial Education

To jumpstart financing for women-owned MSMEs in Ecuador, MicroVest Capital Management (MicroVest) announced an investment in Fundacion Espoir, an NGO specializing in microfinance loans and financial education for underserved female microentrepreneurs and small business owners.

MicroVest's $2 million investment will support Espoir’s efforts to finance women-owned and operated MSMES in an attempt to mitigate the impact of COVID-19, foster employment, and promote the equal integration of women into the economy.

Ecuador was one of the hardest hit countries in Latin America during the pandemic, which compounded already existing economic difficulties.  The country’s unemployment rate hit 6.6% in September 2021, almost twice its rate from December 2019. The poverty level increased six percentage points to nearly 49 percent of the population (UNICEF). The drop in employment due to the pandemic was especially pronounced in the informal sector and among women (IADB).

Fundacion Espoir provides both individual and group loans (village banking). The company also offers access to a low cost ($2.89 per month) health insurance package that includes primary health care for the borrower’s families as well as life and credit insurance throughout the duration of the loan.

This is MicroVest's eighth loan cycle with the company.

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The information contained here has been written for MicroVest Capital Management, LLC (“MicroVest”) and no representation or warranty, expressed or implied is made by MicroVest as to the accuracy or completeness of the information contained herein. The portfolio company highlighted is for informational purposes only and does not represent all of the portfolio holdings and it should not be assumed that investments in the portfolio company identified and discussed were or will be profitable. The information presented on this page is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to purchase an interest in any MicroVest product (the “Funds”), and nothing herein should be construed as such. Any such offer or solicitation will be made only by means of delivery of a definitive private offering memorandum which contains a description of the significant risks involved in such an investment. Prospective investors should request a copy of the relevant Memorandum and review all offering materials carefully prior to making an investment.