Strategy

Global Partnerships has developed a strategy to increase access to financial services for the poor by facilitating the growth of the microfinance industry. In a healthy industry, microfinance institutions (MFIs) expand their outreach to new borrowers and introduce innovative products and services to meet the needs of people living in poverty.

To create such a dynamic industry, we help MFIs access financing from multiple sources and provide them with the support they need to develop and implement business plans that achieve growth and foster innovation on a sustainable basis. Global Partnerships connects our partners to multiple financing opportunities and provides guidance and technical assistance to help them qualify for loans, fulfill reporting requirements, and achieve performance and impact targets.

Our strategy involves the following:

1. Selecting the best emerging MFIs in Latin America based on mission commitment, growth potential, quality of management, profitability and a business plan to achieve success as a financial institution serving the poor
2. Determining the capital structure required to support growth and sustainability
3. Providing appropriate, long-term debt financing
4. Working in strategic alliances to deliver complementary sources of capital to MFIs
5. Making strategically focused grants to accelerate progress toward goals
6. Providing management and technical expertise, drawing from 14 years of experience and insight across our portfolio, to support progress
7. Leveraging on-the-ground staff presence in Latin America to closely monitor our MFI partners and rapidly identify and respond to opportunities and challenges

By combining capital investment, strategic grant making, value-added expertise and on-the-ground support, Global Partnerships helps MFI partners to reach more borrowers, make more loans and help more poor entrepreneurs to lift themselves and their families out of poverty.