SOFIPA 6

SOFIPA

Компания

Мексико

Държава

Проектът

Please note: This project has a grace period. After 12 months, you will receive your first repayment of your investment, and thereafter, you will receive a repayment every 6 months.

Débora and her family earn their living by making sports balls, nets, and hammocks. Débora, 76 years young, learned the trade from her grandmother and is now passing it on to her grandchildren. Sports balls have been the family's primary source of income for three generations. "We sew about a thousand balls a month. A sewing machine would make the work much easier for me and my family," she says.

To sell their products, Débora regularly travels by night bus to the market in Puerto Escondido, where she has more customers and gets better prices. By taking the night bus, she saves on hotel costs and can sell everything in one day.

Débora borrows along with seven other women through a group loan from Sofipa. The loan is used as working capital to make and sell more products. Each group is guided by a Sofipa coordinator. The women meet weekly with the coordinator to repay the loan, save money, and exchange financial knowledge and tips. This brings Débora closer to her dream of buying a sewing machine.

Débora is close to making this dream come true.

What social impact does your investment make?

Financing is crucial in southeastern Mexico, where Sofipa operates. Historically, this region has faced the greatest challenges. The state of Oaxaca has alarming poverty rates due to a lack of education, infrastructure, and basic services, which hinders development. The lives of women in this area are even more challenging, exacerbating their disadvantages. A loan makes women more independent, creating equal opportunities and empowering them.

With your investment in this Sofipa project, you enable around 498 women to receive a group loan. The loans run on a cycle of 16 weeks (4 months), and with each cycle, the women build a credit history that can help them apply for formal bank loans later on. For a first loan, a group member can borrow up to 7,000 Mexican pesos (340 euros) without collateral. The women guarantee each other, creating a strong social support structure.

What financial return could your investment generate? 

• Annual interest rate of 7%
• The maturity of the loan is 18 months
• Grace period: This project has a grace period. After 12 months, you will receive your first repayment of your investment, and thereafter, you will receive a repayment every 6 months.
• With an investment of 1,000 euros, your expected total repayment would be 1,070 euros
• Please consider that although you invest in EUR, the loan is in USD, so there is a risk of exchange rate fluctuations between dollars and euros. For more information on potential exchange rate risks, please visit our currency page.

The story of Sofipa

Financial inclusion is one of the problems the region of Oaxaca in Mexico is facing. The scarce offer of financial services specialized in reaching low-income citizens inspired the emergence of Sofipa in February 2004. With its existence, Sofipa contributes to financial inclusion and the region's overall development. 

Sofipa started operating under the legal figure of the Cooperative Society. However, in search of being more competitive and innovative, in 2016, they decided to adopt the legal formation of an Investment Promotion Company, SOFOM, ENR. Read more about Sofipa on their company profile page. Since then, it has enabled at least 10.000 women to expand their businesses and improve the lives of their families.

Sofipa in numbers 

• Founded in 2004 
• 467 employees
• Loan portfolio of €13,968,857 (end of 2022), for female group loans
• Approximately 10.000 credits to women a year