Social Issue

Guatemala is the fifth poorest economy in Latin America and the Caribbean. Rates of poverty and inequality are persistently high, particularly in rural areas. The economic and social effects of coronavirus are expected to be substantial and this means an increase in the incidence of poverty and existing vulnerabilities. Micro-enterprises that provide a high level of jobs have been significantly affected by the pandemic.

Our Response

Netri has collaborated with Crediguate since 2017 so that they can provide microloans to their clients.

Crediguate was founded as an NGO in 1988 in Totonicapán (Guatemala) by a group of Quiche chiefs, to help indigenous communities in the highland area through loans of social and financial services. In 1993, they began offering microcredits with seed capital from the Canadian Cooperation Department and a public development fund.

Crediguate’s objective is to provide innovative financial services to disadvantaged communities in rural areas, granting loans (in quetzales) to both individuals and groups. These are mainly destined to the promotion of business activities, but also to the purchase of production goods and, increasingly, to the improvement of households by means of loans for this purpose, which already represent more than 40% of the total.

Crediguate follows the Smart Campaign’s client protection principles, promotes gender equality (70% of members are women), and hires culturally sensitive loan officers who speak Quiché, Peanut, and Kanjobal, the members’ indigenous languages of the cooperative.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that Crediguate will be able to provide 49 microloansy, with the idea of generating business opportunities and employment for their clients.