The recent disbursement to microfinance institution Adisa is aimed to increase the resilience of rural and indigenous communities. They are most affected by poverty and inequality in Guatemala, even more so due to the COVID-19 crisis. The pandemic has ended three decades of stability and growth in the largest economy in Central America. Despite the projections of rapid recovery of the economy, it will likely take longer for those communities disproportionately affected by the impacts of COVID-19. That is exactly why we continue our partnership with Adisa, an MFI with a strong rural presence, serving mostly women, constituting 82% of their clients.
Adisa is a not-for-profit legal entity, serving a little over 6.5 thousand clients. Being a small player at a national level, Adisa has a significant presence in the mountainous southwest of the country, unlocking financial inclusion to rural indigenous communities.
"During the last years, Adisa focused its attention on a lower segment of the market, providing group loans, and significantly bringing down the average loan amount. 81% of their clients take out a small loan amount of less than 1000 euros," says Gauke Andriesse, Senior Investment Manager at Cordaid Investment Management.
Since the beginning of the operations in 1991, the organization has grown to have four offices, opening a new branch at the beginning of 2020. Dedicated to advancing their social mission, Adisa has developed a novel strategic plan with the help of a grant, received from FDLG - an important second-tier institution assisting with the development of MFIs.
"Adisa is grateful to have such an exceptional partner as Cordaid Investment Management. They have supported us during the COVID-19 crisis and provided essential financing. We could continue with our daily operations and overcome the liquidity shortage that organizations were experiencing worldwide. We hope to continue strengthening long-term ties of cooperation between us," says Andy Hieriño López Recinos, Adisa's Finance Manager.
Cordaid Investment Management is grateful to contribute to the reduction of poverty and inequality in Guatemala, investing in MFIs like Adisa.
