Mexican Microfinance Boosted with EUR 4 Million Loan to SOFIPA

By Kekeletso Nkele, small.news Assistant

(small.news) — Triodos Investment Management has provided a EUR 4 million senior debt facility to SOFIPA, further strengthening financial inclusion efforts for small and medium-sized enterprises (SMEs) in Mexico, reports TMI.

The funding will enable SOFIPA to continue expanding access to finance for entrepreneurs—primarily women—in some of the country’s most underserved regions.

Rooted in Oaxaca, Expanding Across Mexico

Founded in 2004 in Oaxaca—one of Mexico’s poorest and most culturally diverse states—SOFIPA has grown into a key microfinance player in the South Pacific region. Since 2016, it has operated as a non-regulated, non-deposit-taking microfinance institution (MFI).

Today, SOFIPA serves more than 57,000 borrowers through 72 branches across eight Mexican states, managing a gross loan portfolio of nearly $40 million USD.

Supporting Small Businesses with Accessible Loans

SOFIPA’s mission is to improve family livelihoods by offering accessible and innovative financial solutions. The institution provides both individual and group loans, ensuring small business owners can access modest, appropriately sized financing.

These loans allow entrepreneurs to purchase inventory, remodel or expand their businesses, and invest in fixed assets to increase production and sales.

In addition to lending, SOFIPA provides financial education to help clients avoid over-indebtedness while strengthening their ability to manage both personal and business finances.

A Strong Focus on Women and Rural Communities

Over the past two decades, SOFIPA has issued more than 1.1 million loans. Its client base is primarily rural (83%), with 62% living below the poverty line. Gender inclusion remains central to its mission, with women representing 90% of borrowers.

SOFIPA has demonstrated a strong commitment to social responsibility and ethical finance. It endorses the Client Protection Principles pathway and has received Gold Certification in Client Protection. Additional recognitions include the Women’s Empowerment Principles (WEPs) certification, the Socially Responsible Company seal from the Mexican Centre of Philanthropy, and the GIF certification for corporate governance.

Strengthening Latin America’s Financial Inclusion Ecosystem

The EUR 4 million facility is being provided through the Triodos Microfinance Fund and the Triodos Fair Share Fund.

According to Triodos Investment Management, the investment aligns with its strategy to further diversify and strengthen its financial inclusion portfolio across Latin America—supporting institutions that expand opportunity for underserved entrepreneurs and communities.