12.12.2017

New investment with a strong social mission

Incofin Microfinance Fund invests in Fundacion Paraguaya, a self-supporting NGO with over 30 years’ experience in microfinance. Above all, the institution focuses on micro-entrepreneurs in rural and urban areas, 87 % of which are women. Fundacion Paraguaya has a strong social mission: to fight poverty through microfinance. This mission is followed up closely through their patented measurement tool ‘The Poverty Stoplight’, an innovative model with which poor families can measure and understand their poverty.

So far, Fundacion Paraguaya has helped over 24,000 families to escape poverty. ‘The Poverty Stoplight’ makes poverty visible by dividing the model into 6 dimensions with 50 indicators, by means of photographs, illustrations, maps, etc. That way, poor people can visualize in what way poverty affects their family. This self-diagnosis helps them understand their poverty, and personalized strategies are developed to try to help those families escape poverty once and for all.

The ultimate goal of Fundacion Paraguaya is that microfinance institutions all over the world apply ‘The Poverty Stoplight’ method. The institution has received various international awards and their business model has already been reproduced in other countries such as China and Tanzania.

Apart from financial products, the institution also provides financial and economic education to children and young people. Fundacion Paraguaya has a self-supporting agricultural school for the children of their customers, mostly poor farmers. The model of this innovative school has already been copied in more than 50 countries.

http://www.fundacionparaguaya.org.py/?lang=en