Cordaid Investment Management has provided their fourth loan to Ahsetfin, partner MFI in Honduras, marking 7 years of a fruitful partnership. Despite the COVID-19 crisis, Ahsetfin has shown a solid financial and social performance, while supporting their clients with grace periods on capital and interest in those challenging times.
“Cordaid Investment Management partnered with Ahsetfin in 2014, starting with a small loan for a new water tank product that allowed people and businesses have access to clean drinking water. Over the years, Ahsetfin has grown as an MFI and developed more products that meet the needs of their clients, like loans for house improvements. The MFI has also provided training, helping their clients to diversify and improve their microenterprises,” says Priscilla Smit, Senior Investment Manager at Cordaid Investment Management.
Even though the MFI market in Latin America is quite competitive, Ahsetfin manages to create a distinctive impact. Cordaid Investment Management combined loans with grants for staff training and training to their clients. This blended financing allowed our partner to grow significantly and address the needs of clients, 68% of whom are women.
Investing in a smaller institution with a focus on rural and marginal urban areas allows Cordaid Investment Management to reach the underserved and vulnerable populations of Honduras. "We have been working with Cordaid Investment Management for many years and our relationship keeps getting stronger. We are very happy with the support we are receiving from Cordaid Investment Management," says Elibaldo Acosta, Executive Director at Ahsetfin.
“It's through partnerships like this that we are able to create significant social impact,” adds Priscilla.