Alternativa, Microfinances insitution


ALTERNATIVA | Microfinances insitution

Alternativa’s origins date back to 1992 from a project launched by the Chamber of Commerce of Lambayeque and the Inter-American Development Bank to boost the development of micro and small enterprises. Edpyme Alternativa has focused on building a strong rural presence, aiming to provide formal financing solutions to unbanked communities in remote areas of Northern Peru.

As of Apr-21, Alternativa reaches 45,256 clients in six regions of North Peru, where levels of poverty are of the highest in the country. Alternativa has a strong focus on rural and unbanked clients, supporting them with financial education and trainings. 44% of Alternativa’s clients have no access to other forms of formal financing, with 33% having income of under 5 dollars per day.

Alternativa is doing a strong work to boost environmental awareness and sustainable farming practices via its training and technical assistance activities to clients.

Country: Peru

Investment: EUR 4 milion

Investment type: Senior unsecured debt

Technical Assistance: Pending

Investment date: October 2021

Mapa Alternativa, Microfinances insitution

Huruma: Transforming Lives

Huruma’s investment in Alternativa aims to transform the lives of smallholder farmers through the following theory of change:

Input: EUR 4 MM focused on agricultural financing.

Output: Increase its agri-portfolio to at least 10% of Gross Loan Portfolio and its outreach to active farmers by 1.54x.

Outcome: Increase >2,300 farmers’ crop yields and >1,800 families’ rural income*.

(*) Metrics calculated on the basis of the study estimates “Understanding Impact Performance: Agriculture Investments” (GIIN, 2020)
Alternativa. Microfinances insitution