The Americas

Since the 1980s, Latin America has developed into one of the most sophisticated microfinance markets in the world. Countries such as Bolivia and Peru are home to some of the most recognized institutions that offer a wide array of financial products and services, including insurance, savings, and remittances. In addition, traditional banks are moving down market to reach people typically served by microfinance institutions (MFIs).  However, amidst these dynamic developments, millions of the region’s poorest people, especially in remote rural areas, still have no access to vital financial services they need to move themselves out of poverty.

• More than 45 million people live under $1.25/day in Latin America
• In the Dominican Republic, two million people (21 percent of the population) are undernourished
• In Bolivia, twenty percent of the population (1.9 million people) lives on less than US$1.25 a day

Grameen Foundation has been supporting microfinance activities in Latin America and the Caribbean since 1999 when we began working with Al Sol in Chiapas, Mexico.  To date, we have made more than $3.6 million in direct investments in poverty-focused microfinance institutions to enable them to provide financial services to the poorest women, and have provided nearly $6 million in loan guarantees to facilitate $13 million in local currency financing from local banks.  Our current work in the region focuses on addressing the persistent poverty gap through targeted efforts in six countries: Bolivia, the Dominican Republic, Haiti, Honduras, Mexico, and Peru. 

Measuring Progress
We strongly advocate the need for all MFIs to measure how well their programs and services are helping their clients escape poverty.  Grameen Foundation commissioned the  Progress out of Poverty Index™(PPI™) in collaboration with CGAP and the Ford Foundation to meet this need and MFIs in the region, including Al Sol (Mexico) and Pro Mujer Bolivia, have already adopted the tool.

Using a Holistic Approach
Grameen Foundation also supports efforts by microfinance institutions across the region to adopt a holistic approach to fighting poverty by combining microfinance with other social services.  For example,  Pro Mujer Bolivia provides healthcare alongside its loans, Fonkoze in Haiti teaches it clients to read and write, and Esperanza International in the Dominican Republic provides low-cost treatment and microfinance services to HIV/AIDS patients.

A Path out of Poverty 
When she lived in Haiti, Dieula worked as a servant, often going days without food to eat. She and her sister, Rosa, eventually moved to the Dominican Republic and began performing agricultural work. Because she suffers from sickle cell anemia, Dieula was often ill, which meant she couldn’t work as often as she may have liked. She knew she needed an opportunity to improve her livelihood for the sake of both her health and her happiness. Read More >