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Press release
July 26, 2022
Man holding pair of shoes

Summary of Anticipated Development Impacts


  • Increasing financial inclusion: Locfund Next provides local and hard currency financing and other types of financial products and services to MFIs, through which it aims to reach at least 200,000 end clients, including at least 50% women and 40% rural residents. The Fund estimates its indirect impacts to benefit some 2.4 million people in the LAC region. The Fund’s intentionality in servicing the base of the pyramid is also demonstrated in that it tracks, on a quarterly basis, the average size of loans held in its (MFI clients’) portfolio. The Fund targets an average loan size for end‑clients under USD 1,500. Lower average microloan sizes are associated with wider access to financial services, especially for low‑income women borrowers.
  • Strengthening capabilities and improving productivity of MFIs and their clients: Locfund Next has a dedicated Technical Support Facility (TSF) which provides MFI clients with assistance on digital transformation, with additional components focusing on gender, ESG and climate change mitigation and adaptation. Improving digital literacy and capabilities in the finance sector is associated with wider financial and digital inclusion, as well as positive spillovers between sectors of the real economy.

Climate action

Part of the Fund’s technical assistance offer to MFI clients includes support on climate‑related topics, including provision of climate finance training and support for the development of tools to manage climate‑related risks.


  • Supporting women’s leadership: Women represent 33% of the senior management (C‑Suite) team at Locfund Next, above the 30% threshold under the 2X “Leadership” Criteria. The policies and procedures related to gender equality which BIM has already put in place support women in the workplace. Women represent 53% of the workforce at the Fund level, which is over the 40% 2X threshold for the finance sector. Commitment to implement additional measures to support the recruitment, retention, and career development of women employees, as well as to strive for continued gender balance has been reflected in the 2X Flagship Fund Memorandum of Understanding (MoU) and serves as a basis for the Fund’s qualification under the 2X “Employment” Criteria.
  • Improving equal access to finance for women: As of March 2022, MFIs supported by Locfund Next have a majority (~70%) women customers (individuals and businesses), which ties to Locfund Next’s corporate social target to reach at least 50% of women end‑clients. Thus, the current Fund’s portfolio composition tilted towards MFIs specifically or disproportionately benefiting women makes it qualified under the 2X “Investments through Financial Intermediaries”, or “Indirect” Criteria. Even more importantly, it demonstrates the strength of the Fund’s commitment regarding gender equality and women’s economic empowerment.