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.
Investment: EUR 3 million
Investment type: Senior unsecured debt
Technical assistance: Pending confirmation
Date of investment: November 2021