Introduction to Asofom and IFC Partnership
The Association of Multiple-Purpose Financial Objects in Mexico (Asofom) and the International Finance Corporation (IFC), an arm of the World Bank, have entered a strategic alliance to bolster Microfinance Institutions (Sofomes) and integrate sustainability standards within this financial sector.
Objectives of the Partnership
The agreement aims to enhance Sofomes’ ability to offer sustainable financial products and services aligned with international standards. This will be achieved through:
- Developing specialized strategies
- Strengthening technical capabilities
- Mobilizing resources towards responsible financial practices
- Increasing financing for Micro, Small, and Medium Enterprises (MSEs)
The collaboration also includes adopting international standards, enhancing governance, and improving climate risk management to foster a more competitive and resilient financial ecosystem.
Quotes from Asofom Leaders
Javier Garza, national president of Asofom, stated: “This alliance with IFC reinforces our commitment to self-regulation and transparency in Sofomes. We are moving towards a stronger sector capable of providing sustainable financing, boosting the competitiveness of MSEs and strengthening market confidence.”
Marcela Ponce, Manager of Sustainable Finance Advisory Services at IFC in Latin America and the Caribbean, added: “Our collaboration aims to expand the impact of sustainable financing through financial intermediaries. The goal is to facilitate capital flow towards strategic segments like MSEs, key employers in Mexico, via intermediaries that strengthen and broaden sustainable finance reach.”
Focus on MSEs
The partnership gains significance as MSEs play a pivotal role in the national economy. According to INEGI, MSEs constitute over 99% of businesses in Mexico and generate 72% of national employment.
However, access to credit remains a challenge. Sixty percent of businesses secure their first loan through Sofomes, and nearly half of commercial credit for this segment comes from these entities, particularly unregulated Sofomes, which account for 34% of the total, as per Asofom data.
Óscar Cruz, national vice president of Asofom, emphasized the importance of collaboration among Sofomes to advance this process.
“Sofomes must unite even more to solidify our path towards sustainability in the financial ecosystem, continuously improving governance and ensuring access to sustainable financing for our members,” Cruz commented.
Relevance of the Alliance
Jorge Avante, general director of Asofom, highlighted the alliance’s significance for the country by strengthening financial inclusion and economic resilience. It also provides a solid foundation for Asofom’s Decalogue, which now incorporates corporate governance, internal control, transparency, and risk management standards.
