Improve the quality of life of low-income people in Central America and the Caribbean
ADA supports the expansion of inclusive finance products and services in Central America and the Dominican Republic through a technical and financial support programme to the regional microfinance network REDCAMIF (Red Centroamericana y del Caribe de Microfinanzas).
REDCAMIF, the Central American and Caribbean microfinance network
To expand their services, microfinance institutions (MFIs) rely on national networks whose role is key to developing appropriate financial products and creating an enabling policy environment.
These networks are themselves part of the REDCAMIF network, a regional microfinance network that groups seven national networks:
- Network of Microfinance Institutions of Guatemala (REDIMIF),
- Association of Microfinance Organizations of El Salvador (ASOMI),
- Network of Microfinance Institutions of Honduras (REDMICROH),
- Nicaraguan Association of Microfinance Institutions (ASOMI),
- Network of Microfinance Organizations of Costa Rica (REDCOM),
- Panamanian Microfinance Network (REDPAMIF),
- Dominican Microfinance Network (REDOMIF).
Together, these networks represent 125 member MFIs, for a total coverage of 1.5 million clients of which 59% are women and 49% live in rural areas.
More information on the REDCAMIF website
ADA-REDCAMIF programme 2018-2021 'Strengthening the social added value of microfinance'
REDCAMIF has always worked towards the professionalisation and specialisation of the microfinance sector through the development of a series of programmes and projects aimed at strengthening the sector's capacities, promoting innovation in financial and non-financial products and services adapted to the needs of low-income populations in order to improve their quality of life. Since 2009, ADA has been supporting REDCAMIF to professionalise the microfinance sector in Central America and the Caribbean.
With this in mind, ADA and REDCAMIF worked together on a project between 2018 and 2021 entitled 'Strengthening the social added value of microfinance', which aimed to improve the quality of life of low-income populations in Central America and the Dominican Republic by providing access to responsible and inclusive financial services. To that end, the programme aims to support microfinance institutions (MFIs) to:
- PILLAR 1 - Develop inclusive financial products and services: 19 MFIs received methodological and/or financial support through 22 projects to design a new financial product or service with social added value (an MFI can be supported on several projects). Of these MFIs, 18 have developed green loans, 6 of which also received funding from the Luxembourgish Ministry of Environment, Climate and Sustainable Development (MECDD). These green credits are intended to finance environmentally friendly activities, either by improving housing conditions or by making farms more profitable by adopting more responsible practices. By the end of 2021, more than 2,400 clients had taken out a green loan with these 18 MFIs.
- PILLAR 2 - Using digital technologies to improve their operations: 17 MFIs were supported through 17 projects to implement digital solutions.
In total, 31 MFIs were supported through 39 projects in the 7 countries of REDCAMIF (Nicaragua, El Salvador, Guatemala, Honduras, Dominican Republic, Costa Rica and Panama), as one MFI can be supported on both pillars.
Key projects of the programme
ADA seeks innovative solutions to improve access to basic services
22 September 2022
ADA is in the process of identifying innovative solutions to expand access to water, sanitation and hygiene (WASH) services and renewable energy in its countries of operation and began testing these solutions through pilot projects.
ADA seeks innovative solutions to improve access to basic services
More info
ADA meets beneficiaries of green loans in Central America
18 August 2022
As part of a project which has been underway since 2018 with ADA's longstanding partner REDCAMIF, the regional microfinance network in Central America and the Caribbean, 17 MFIs in the region either further developed or improved their green financial products and services. ADA met clients of these MFIs who benefitted from these services.
More info
Focus on Nicaragua (FDL Financiera) and Honduras (PILARH OPDF)
24 May 2022
Two microfinance institutions in Niacaragua and Honduras have been supported under the ADA-REDCAMIF programme (2018-2021), either to develop inclusive financial products and services or to use digital technologies to improve their operations. This month, focus on FDL Financiera and PILARH OPDF.
Read the projects of these 2 MFIs
Focus on Honduras (Finsol), El Salvador (PADECOMSM Crédito and Credicampo), Panama (SUMA Financiera,) and the Dominican Republic (Banco Adopem)
18 March 2022
Five microfinance institutions in Honduras, El Salvador, Panama and the Dominican Republic have been supported under the ADA-REDCAMIF programme (2018-2021), either to develop inclusive financial products and services or to use digital technologies to improve their operations. This month, focus on PADECOMSM Crédito, Credicampo, SUMA Financiera, Banco Adopem and Finsol.
Read the projects of these 5 MFIs
Focus on Honduras (Fundación Hermandad de Honduras) and El Salvador (PILARH and FUSAI)
2 December 2021
Three microfinance institutions in Honduras and El Salvador have been supported to either develop inclusive financial products and services or to use digital technologies to improve their operations. This month, focus on Fundación Hermandad de Honduras, PILARH and FUSAI.
Read the projects of these 3 MFIs
Lessons learnt
Leveraging the experiences from pilot projects in the design and implementation of green, inclusive financial services
17 March 2023
This document summarises the results and lessons learnt from 19 green financial service projects which were implemented over the last four years by ADA and REDCAMIF.
Read the document
Lessons learnt from the implementation of projects to improve access to water and sanitation services in in Central America and the Dominican Republic
18 February 2022
Find out the results of the water and sanitation projects carried out in the Latin American and Caribbean MFIs affiliated to REDCAMIF.
Read the document
Lessons learnt: The creation of customer-centric digital transformation strategies
6 January 2022
ADA and REDCAMIF have just completed a three-year digital transformation programme for MFIs affiliated with REDCAMIF. Seven MFIs implemented a client-centric methodology with technical support from the consulting firm Amarante Latin America and the Caribbean.
Read the document
Studies
Sector Study N°7 - Advances and challenges of green financing in Central America and the Caribbean
18 May 2022
This study initiated by ADA and REDCAMIF carries on the effort of promoting green finance by capitalizing on relevant experiences in the region, identifying ways of scaling up green finance, and analysing the limitations and opportunities of green finance in the microfinance sector.
Read the study N°7 (in English)
Sector Study N°6 - Situation of water and sanitation solution financing in Central America and the Dominican Republic: generating synergies
22 March 2022
This study carries on the effort of promoting green finance by capitalizing on relevant experiences in the region, identifying ways of scaling up green finance, and analyzing the limitations and opportunities of green finance in the microfinance sector.
Read the study N°6 (in English)
Sector Study N°5 - Impact of Covid-19 on microfinance clients in Central America and the Caribbean
10 February 2021
This study seeks to analyse the impact of the pandemic on micro, small and medium-sized enterprises, clients of the microfinance sector in Central America and the Dominican Republic, through a systematisation of the results found by MFIs that applied surveys to their clients to understand their conditions after the onset of the pandemic.
Read the study N°5 (in Spanish)
Sector Study N°4 - Sector Study No.4 - Main effects of COVID-19 and measures to address the crisis in the Central American and Caribbean microfinance sector
June 2020
This study analyses the effects of the Covid-19 pandemic on the microfinance sector in Central America and the Dominican Republic, as well as the measures put in place by the different actors to face the crisis.
Read the study N°4 (in Spanish)
Sector study N°3 - Main determinants of profitability in Central American and Caribbean microfinance institutions
June 2020
This study seeks to analyse the determinants that influence the profitability of microfinance institutions in Central America and the Dominican Republic over the period 2014 - 2018. The data processing was carried out using Stata software, running an econometric multiple regression model for a panel of 81 institutions in the region.
Read the study N°3 (in Spanish)
Sector study N°2 - Asset management efficiency and asset quality in the microfinance sector in Central America and the Caribbean
October 2019
This study seeks to analyse the evolution of asset quality, mainly the loan portfolio of the microfinance sector in Central America and the Dominican Republic, as well as to identify the factors that have influenced this behaviour and the strategies that should be adopted to improve asset quality.
Read the study N°2 (in Spanish)
Sector study N°1 - Global assessment of the microfinance sector in Central America and the Caribbean: strategic challenges for the future
December 2018
REDCAMIF has published a series of studies on microfinance in Central America and the Caribbean to highlight the advances and challenges of the inclusive finance sector in the region. This document reflects the joint effort that REDCAMIF and ADA have made over the past 10 years to promote the financial and social inclusion of micro and small entrepreneurs. This first study in the series identifies the strategic challenges that will influence the development and strengthening of the microfinance sector in Central America and the Caribbean in the medium term.
Read the study N°1 (in Spanish)
Client feedback
Client feedback on the WASH (eau, assainissement et santé) and Green Energy loans in Guatemala under the 2018-2021 programme
22 janvier 2022
During a mission to Guatemala in November 2021, the ADA team visited FAPE, Mayaversatil and FFDL, three MFIs that have received support for the development of a product enabling access to water and sanitation and green energy as part of the "Reinforcing the social added value of microfinance" program implemented by ADA and REDCAMIF between 2018 and 2021.
Read the client feedback