Economic Growth Nicaragua Project #18615

Help 1,600 Nicaraguan Farmers Rise Out Of Poverty

by Working Capital for Community Needs, Inc.

Project Report | Jun 4, 2015
Providing Much More Than Microfinance, Keeping People Out Of Poverty

By Zacary Smucker-Bryan | Investor Relations and Communications Manager

Ermin and His Family

Thanks for investing in a better future for rural Nicaraguans!

More Than Credit: Why We Support COOPEFACSA

COOPEFACSA is a member-run cooperative that provides more than just microloans to their members, clients, and constituents in rural Nicaragua. They provide other financial services like housing loans, savings, pensions, insurance, and remittances/money transfers, in addition to things like health services and business training. These services are essential to microborrowers being successful in their businesses so they can work their way out of poverty and stay out of poverty. It is because of these services we extended support to them through investment and capacity building by our staff and one of our volunteer board members. It is why we support them and asked you to do the same. Let's shine some light on the good work they are doing that your support has made possible!

Housing

COOPEFCSA provides loans for housing improvements and betterment of agribusiness infrastructure. Many of the farmers and other entrepreneurs that are members of COOPEFACSA have used past and present loans to improve the sanitary conditions of their current houses or build houses that are safer and more sanitary. For example, Ermin has been involved with COOPEFACSA since 1993, receiving his first loan for 300 cordobas (around $45). He was able to set up a small ranch in 1994, which he has expanded since then. His most recent loan was used to purchase calves to expand his cattle operation. Ermin was also able to finance the building of a new house with better conditions and improved sanitation for his family through one of COOPEFACSA's housing loans.

Clean Energy and Environmental Protection

The co-op has an agreement with TecnoSol, a company that produces solar panels in Nicaragua, to finance solar panels in the different rural communities where COOPEFACSA operates. Many small landholders have now electricity to run their modest agribusiness facilities and lighting so their children can study at night and enjoy a better education. In order to preserve the ecological diversity and health of the of the community, COOPEFACSA does not finance any forest clearing or the purchase of dangerous chemical inputs. The co-op will soon implement an agricultural credit program with the financial support of the Inter-American Development Bank (IADB). The co-op members participating in this project will receive training and technical assistance to increase milk and meat production. In addition, through the financing of cocoa, the co-op promotes the conservation of vast areas of plant and animal life. Cocoa cultivation requires abundant forests to provide shade for proper plant development, promoting water retention and protecting the soil from erosion at the same time.

Other Essential Services

COOPEFACSA provides training and financial education to all of its members through its education committee, including the responsibilities of cooperative governance so that members can actively participate in decision-making. In 2013, it trained 270 new co-op members, 70% of which were women. In addition to things like savings accounts, pensions, and insurance services, members are also eligible to receive $300 to cover minor surgeries and other medical expenses and $1,000 for funeral expenses to co-op members and their close relatives. Members can also utilize remittances in Nueva Guinea, Rama and Muelle de los Bueyes. These municipalities are isolated from other parts of Nicaragua and this service is highly valued by local people who need to send funds elsewhere.

Thanks again for supporting the working poor in Latin America through a comprehensive set of services that help people work their way out of and stay out of poverty. Until next time, and in service,

- Zac

Ermin

Their House Before

Their House Now

Links:

Attachments:

WCCN's most recent newsletter (PDF)

5 Attachments

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Mar 5, 2015
Growing our Partnership and Impact

By Zacary Smucker-Bryan | Investor Relations and Communications Manager

Miguel

All of the microfinance partners we invest in provide more than just microloans to their members, clients, and constituents. They often provide other financial services like savings, pensions, insurance, and remittances/money transfers, in addition to things like education, health services, and business training. COOPEFACSA is no different, and these services have made a huge difference in the community they serve. In much the same way, WCCN, being a mission-driven organization, has always provided more than just financing to its partners. We often work with the staff of the organizations we finance to improve their systems, understand best practices in the microfinance field, and increase their ability to properly manage and report on the impact of their loan from WCCN. We (meaning YOU and WCCN staff/volunteers) made this project happen together, and I wanted to thank everyone for donating - it has made such a big difference!

Meeting the End-Borrowers

Francisco, Director of Operations, Latin America, and myself visited with borrowers to hear their stories and how access to credit and other services has impacted their lives. This included a pilot of a social impact survey, to be expanded later with COOPEFACSA and other WCCN partners (more on that in later updates). The results were amazing to hear!

One borrower, Miguel, is a 71-year-old farmer and rancher in Los Pintos and has been a member of COOPEFACSA since 1996. Like all members, he received education about the responsibilities and opportunities of cooperative governance, and has contributed to the leadership of the organization to better serve the members of his community. Utilizing the credit and services from COOPEFACSA, he has been able to build a ranching business from the ground up. His most recent loan is for starting a sharecropping operation utilizing a neighbor's coffee fields. In addition, he said "access to credit has provided me the opportunity to increase my business income and have a better education for my children. Some of my adult children now have employment with me working on my ranch."

Providing Capacity Building

Martin, Senior Credit Advisor with WCCN, and John, WCCN Board Member and Program Related Investment Committee chair, met with COOPEFACSA's management to discuss ways for WCCN and COOPEFACSA to grow together in impact. Much of this included asking thought provoking questions of the COOPEFACSA staff that caused them to examine their operational model for serving their members. Martin provided training on how to best conduct a strategic planning exercise to examine the core aspects of their business, including a competitor analysis that informs their strategy. In incorporating these suggestions and best practices, COOPEFACSA will ensure its financial sustainability so it can continue to grow and serve more small-scale farmers and entrepreneurs.

It was a great visit, and the dialogue between our two organizations is ongoing on how to best grow in impact. Thanks again for supporting the working poor in Latin America. Until next time, and in service,

- Zac

Isidra

Miriam

Ermin

Leonardo

WCCN and COOPEFACSA Leaders in a cocoa field

Links:

A History of Our Partnership and Profile of COOPEFACSA

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