Social Issue

Ecuador was one of the countries with the greatest inequality in income distribution in 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 where most of the country’s economic activity is concentrated.

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

Our Response

Insotec is a micro-finance NGO founded in 1980 and headquartered in Quito, Ecuador. It primarily focuses on financial inclusion for micro entrepreneurs, particularly in the agricultural sector (>60% of the portfolio). Insotec provides its services to underserved clients, they operate in rural areas (>70% of portfolio and number of clients) and 43% of their clients are women.

In addition to providing microcredits to its more than 18,000 clients, Insotec offers access to other non-financial services, such as agricultural education workshops and health services, that are either fully subsidized (from the proceeds of its lending business) or offered to clients and non-clients at preferential costs.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that Insotec will be able to provide 160 microloans in the country to empower Ecuadorian communities to generate employment.