Technical Assistance

Incofin cvso decided to increase the Technical Assistance (TA) budget from € 50,000 to € 100.000. The TA facility was set up in 2011 in order to improve the general development of microfinance institutions through tailor-made support. The combination of financing and this technical support constitutes the basis of our Capital Plus approach.

Since this technical support facility was set up Incofin cvso has already supported 14 different projects, with a total sum of € 300.00. The majority of these projects were smaller microfinance institutions which otherwise have only limited access to expert support. By doubling the TA budget, the fund will be able to support a larger number of projects.

A recently launched project is a collaboration between the fund and three Nicaraguan microfinance institutions, Fondo de Desarollo Local (FDL), Fundenuse and Micrédito. The project was set up to develop an index-based agricultural insurance committed to helping national customers.

Since droughts, floods and tropical storms occur more frequently and unexpectedly in Latin America and the Caribbean, the circumstances for small farmers are becoming increasingly difficult. This innovative insurance is developed to protect microfinance institutions and their clients against such climatic disasters, and to enhance the resilience of these small farmers as a result of climate change.

The initiative was jointly financed by Incofin cvso itself, the Inter-American Development Bank (IADB), the Nederlandse Financieringsmaatschappij voor Ontwikkelingslanden (FMO) (the Dutch Finance Company for Developing Countries) and the participating institutions.