FMO is the Dutch development bank investing in the private sector in developing countries and emerging markets. Their mission is to empower entrepreneurs to build a better world. Therefore, FMO also became Country Support Partner of the Nudge Global Leadership Challenge 2015. FMO supports impactful projects in different parts of the world. One of their projects is the support of microfinance outside of urban areas in Nicaragua.
Nicaragua is a small Central American country with a population of 6 million. In 2014 Nicaragua boasted a GDP growth rate of 4.7%, more than twice the average for the region. However, it remains the second poorest nation in the region after Haiti; it continues to face critical challenges in ensuring access to basic goods and services. Financial penetration in Nicaragua remains low and access to finance is scarce, especially amongst lower-income farmers and small-scale entrepreneurs in rural areas.
Fondo de Desarrollo Local (FDL) is an NGO microfinance institution with the mission to enable micro, small and medium entrepreneurs to improve their standard of living by providing them with a broad range of financial services. FDL partners with other organizations to also offer their clients non-financial services such as business skills training, legal support, and improved market access opportunities.
FMO saw the demand and invested in FDL through the MASSIF financial inclusion fund, which it manages on behalf of the Dutch Ministry of Foreign Affairs.
Find more information about this project and other FMO client cases here.