GESTE Foundation Supports Micro-Entrepreneurs in Paraguay: Oñondive Microcredit Fund

GESTE's first project was launched in 2015 in Paraguay. A microfinance fund was established at the savings and credit cooperative COPAFI, launching the "Oñondive – Together" program. The revolving fund has now been operating for over 8 years and has enabled hundreds of micro-enterprises and family farms to finance their economic activities!

90 percent of borrowers are women. Loans are primarily granted to borrowers in the areas of trade, agriculture, and handicrafts. They run for a minimum of four months and a maximum of two years. The average loan amount is approximately 330 euros.

The repayment rate is very high, thanks in no small part to the quality work of the three savings and credit cooperatives (SCCs) through which the loan funds are disbursed. These SCCs employ loan officers trained by DGRV and use the DGRV-developed credit evaluation tool "Microscore."

In autumn 2015, the GESTE Foundation Baden-Württemberg provided 25,000 euros to enable micro-enterprises in Paraguay to access financial services and, ultimately, the formal economy. The fund's loan capital was fully utilized within a very short time.