Project
Description
Investment Amount
Anticipated Reach
11. ANCALMO: Sprinkles against Anemia
ANCALMO is a family-owned pharmaceutical manufacturer in El Salvador with a well-known line of products aimed at reducing malnutrition. It has experience developing new pharmaceuticals and exports almost half of its production to Central American countries. The company will become the first Central American producer of micronutrient powders (MNPs), called Sprinkles, with a loan from OMJ and a local bank to adapt and expand their plant.
$1.1 million loan
Up to a million children could benefit from locally produced MNPs, and ANCALMO could sell 1.4 billion units over the next 5 years to combat childhood anemia alone. Once ANCALMO has experience producing MNPs for children under 5, it will be in a position to manufacture a different formula to reduce anemia in pregnant women and target that population.
12. Going Beyond the Basics and Banking the Unbanked: Empresas Publicas de Medellín (EPM) Colombia
Financiación Social (Social Financing or FS), an EPM program, provides accessible credit to those at the base of the pyramid. The program
$10 million loan
Within 5 years, EPM expects to have issued nearly 16,000 loans through MYPES, leading to the purchase of over 70,000 items. Between 2012 and 2014, EPM plans on implementing diagnostic analyses of purchases made by business owners to ensure effective use of the products acquired and efficient use of utilities. EPM anticipates a default rate of no more than 4% for MYPES.
$10 million loan
It is expected that both the capacity-building program and the expansion of credit will generate business results for Tenda, and social and business returns for microentrepreneurs. From Tenda’s perspective, the company will evaluate if the expansion of the credit program, after the implementation of the new credit methodology, reduces delinquency rates and increases company sales and average purchase amount made with the store cards, and whether it increases client fidelity. Similar results will be measured to assess the capacity-building program.
leverages EPM’s business platform to assess credit risk by using clients’ utilities payment records. After clients are extended a credit line, EPM bills them through their monthly utility bill. With an EPM credit card, customers purchase energy-efficient appliances and building materials for home improvements from allied vendors. EPM reports credit performances to credit bureaus, building a credit history for its clients. In 2012, FS will increase credit access to individuals and begin to offer one-time loans to micro- and small businesses (a program named MYPES).
13. Transforming Business Relations into Partnerships for Growth: Tenda Atacado
Tenda Atacado plans to expand its current credit portfolio to an additional 60,000 microentrepreneurs and engage 6,000 of these clients in a capacity-building program. This is expected to help mitigate challenges faced by clients while increasing the company’s client base, client retention, sales, and the size of its credit portfolio.
42 | Working Together in Pursuit of Inclusive Business: Sharing the Latin American and Caribbean Experience with Asia and the Pacific