CFE, Microfinance Institution


CFE | Microfinance Institution

 Centro Financiero Empresarial (CFE) is one of the most inclusive MFIs in Panama, providing financial products to MSMEs and entrepreneurs at the base of the economic pyramid, the missing middle, in a country with a very fragmentated and underpenetrated microfinance market. CFE was founded in 2009 and has identified agricultural financing as the key to effectively fulfilling underserved farmers’ needs.

CFE serves the agricultural sector through standard commercial loans, with plans to specialise in this underserved niche market. Huruma’s technical assistance would assist in this multi-product strategy, contributing to the launch of an agricultural product. . In addition, CFE is expected to implement a segmentation of clients by credit risk and the identification of market niches with potential demand.

CFE is planning to incorporate green loans product offer in 2022-25 to support its environmental strategy. It has recently launched its environmental social responsibility policy, including initiatives to create environmental awareness among employees and clients and generate good practices among the financed enterprises.

Country: Panama

Investment: EUR 3 million

Investment type: Senior unsecured debt

Technical assistance: Pending confirmation

Date of investment: November 2021

Map CFE, Microfinance Institution

Huruma: Transforming Lives

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

Input: EUR 3 MM focused on agricultural financing.

Output: New agricultural product launched and >EUR 3MM agricultural loans disbursed.

Outcome: Increase >4,800 farmers’ crop yields and >3,900 families’ rural income*.

(*) Metrics calculated on the basis of the study estimates “Understanding Impact Performance: Agriculture Investments” (GIIN, 2020)
CFE, Microfinance Institution