Social Issue

Ecuador was one of the countries with the greatest inequality in the distribution of wealth in all of Latin America. As a consequence of this situation, millions of Ecuadorians migrated abroad and many others had to move from the countryside to the city, which is where most of the country’s economic activity is concentrated.

In recent years, inequality has decreased, causing the Ecuadorian Gini coefficient to be below the regional average. However, these achievements are at risk due to the recent implementation of fiscal austerity and the appreciation of the dollar.

Our Response

We have collaborated with Espoir Foundation, a non-government organization that initiated its activities in microfinance through the co-execution of the Income Generation and Health Education Program, created by “The People-to-People Health Foundation – Project HOPE”, that introduced the methodology of village banking in Ecuador. In 2001, HOPE transferred the execution of the program to Espoir with all the assets, portfolio and personnel.

Espoir offers financial services through credit groups or individual loans, as well as non-financial services such as education, credit insurance and primary health care for the borrower and his family.   Clients are micro entrepreneurs, living in marginal urban and rural areas of the country. 75% of the active borrowers are women, who are willing to improve their income and management skills, so they can provide a better quality of life for themselves and their families.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that Espoir will be able to provide 486 microloans in the country to empower Ecuadorian communities to generate employment.