Unitus, a nonprofit that aims to be the global catalyst for microfinance, recently announced an agreement to invest $1.9 million with Pro Mujer Mexico. Pro Mujer is a microcredit institution that extends small loans to the entrepreneurial poor in the State of Hidalgo, Mexico. $1.5 million in loans will be allocated for on-lending to microentrepreneurs, and $375,000 goes to institutional capacity building.

"This investment in Pro Mujer Mexico marks the first of many partnerships that Unitus will be creating with carefully selected microfinance institutions," said Geoff Davis, Executive Vice President of Unitus. "Microfinance is a proven tool for alleviating poverty. We are confident that our approach will accelerate growth and achieve scale, allowing many more people to benefit from this successful methodology."

Pro Mujer Mexico is the newest extension of Pro Mujer International, which currently operates successful micro-lending programs in Bolivia, Nicaragua and Peru. Its programs are helping more than 54,000 impoverished families start and grow profitable self-employment projects and work their way out of poverty.

Partnering for Maximum Impact
"This investment from Unitus will change the scale on which we operate," said Lynne Patterson, Executive Director of Pro Mujer International. "It's going to vastly accelerate our earlier projections, and have a profound positive impact on the lives of the poor in Mexico," she said.

A recent study found that Pro Mujer clients double their incomes in the first two years of the program. Pro Mujer clients are also more likely to use health services for themselves and their children than non-Pro Mujer clients, and their children are also more likely to stay in school. The Unitus investment will enable Pro Mujer Mexico to reach more than 35,000 poor families with microcredit loans in the next five years.

"Unitus is an exceptional group of top-notch professionals," said Patterson. "With their vision and expertise, the Unitus approach is going to have a lasting impact on the industry."

A recent study found that Pro Mujer clients double their incomes in the first two years of the program.

Unitus Methodology
"Pro Mujer has a proven poverty impact methodology, world-class management capacity and a desire to grow very rapidly," said Davis. "In seeking an investment partner, we evaluated more than 50 microfinance institutions in Mexico, and Pro Mujer Mexico was selected for our first investment. We anticipate helping thousands of Mexican families work their way out of poverty through this investment."

The Pro Mujer investment represents the first of many similar investments that Unitus plans to make in superior-performing microfinance institutions (MFIs). Unitus selects an MFI investment partner after a thorough due diligence process that evaluates, among other things:

the capacity to improve the lives of the poor

managerial and operational ability

the capacity to expand rapidly

market size and growth potential

ability to develop and manage a successful microfinance program

financial performance

Unitus invests in MFIs over the course of 5-7 years with each year's funding contingent upon reaching established performance benchmarks. Unitus provides funding and consulting as the MFI grows rapidly, works toward sustainability and becomes eligible for loans from traditional commercial funding sources.

About Unitus
Unitus is a high impact microcredit accelerator that dramatically expands the lending capacity of carefully selected microfinance institutions (MFIs) in developing countries. Unitus aims to at least double the number of loans that can be made by an MFI to the entrepreneurial poor. By gaining access to credit, many more of the world's poor can create sustainable self-employment projects, become economically self-sufficient and lift themselves from poverty. Based in Redmond, Washington, Unitus is a not-for-profit organization that relies on the financial resources of like-minded individuals, families and foundations to fulfill its mission.

About Pro Mujer
Pro Mujer (Programs for Women) is a non-profit international development organization whose mission is to help women lift themselves and their families out of poverty. Pro Mujer provides training and small loans so women can initiate or improve small businesses and increase their income. Pro Mujer is defining its niche by providing an integrated program of credit and training to women, and linking them to health services in a self-sustainable manner. Pro Mujer receives funding from international and U.S. government agencies, the governments of Bolivia, Nicaragua, Peru and Mexico, private international aid groups, private foundations, corporations and individuals.

For more information, contact Greg Whisenant at (425) 881-2264.

To read another Global Envision article about women and microcredit see You Can Bank on It: Women are Doin' It for Themselves.

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