Summary of Anticipated Development Impacts

MARKET DEVELOPMENT

  • The key development impact contribution of this transaction is to provide microfinance in Ecuador to foster economic development by supporting local livelihoods and jobs.
  • Supporting local employment: FinDev Canada’s investment of US$ 7.5 million will enable Alianza del Valle to provide financing to hundreds of microenterprises, half of which will be WMEs, and contribute to promoting sustainable livelihoods.
  • Innovative solutions to increase financial inclusion: To overcome COVID‑19 restrictions precluding in‑person meetings, Alianza del Valle developed an innovative product, reaching its members through digital credit.

Women's economic empowerment

Support women’s leadership: The Cooperative’s workforce demonstrates notable representation of women across all levels of the organization, including at Board level where women account for 60% of the group.

WOMEN’S ECONOMIC EMPOWERMENT

  • The Alianza del Valle transaction qualifies for the 2X Challenge based on the Leadership criteria (60% of Board of Directors are women) and the Employment criteria (62% of employees are women), as well as its use of proceeds towards WMEs.
  • In 2019, the Cooperative was recognized for its efforts, achieving 6th place in Latin America for being A Great Place to Work, a distinction that celebrates organizations creating inclusive workplaces.
  • Offering decent employment for women: As an employer, Alianza del Valle strives to provide its employees with equal opportunities. The Cooperative offers quality local employment with fair compensation, as determined by a benchmarking exercise led by Deloitte. Alianza del Valle also ensures job postings are gender‑neutral. 
  • Addressing barriers faced by women in accessing funding: Given Alianza del Valle’s current microfinance portfolio distribution (35% women, 65% men), the Cooperative will have to make efforts to deploy half (50%) the capital effectively to WMEs and demonstrate intentionality to promote women’s economic empowerment.

CLIMATE MITIGATION AND ADAPTATION

  • Sustainable practices within operations: Given the sector of operation, Alianza del Valle has a low environmental footprint. Nonetheless, the Cooperative has plans to develop an Environmental Policy for their internal operations.