ABC Fund Lends $3M to Finamiga to Fund 5K Vehicle, Agricultural Loans for Women in Colombia
The Luxembourg-based Agri-Business Capital (ABC) Fund recently announced it has lent $3 million to Finamiga, a Colombia-based lender to rural, small-scale farmers and independent workers, most of whom are women. Finamiga plans to use the wholesale loan to fund 4,000 retail agricultural loans and 1,000 motorcycle loans. Rather than disbursing cash, Finamiga generally arranges for each client to receive his or her funded asset or supplies – such as fertilizer, agricultural equipment or land – at the beginning of the loan cycle.
Finamiga was founded in 2014 as a unit of the Colombia-based “inclusive microfinance institution” UNI2Microcrédito. UNI2Microcrédito provides microinsurance as well as lines of credit for small and medium-sized enterprises. As of 2022, Finamiga reports a gross loan portfolio of $13 million. It operates eight branches serving approximately 10,000 active clients – many of whom live in post-conflict regions.