In partnershIp wIth the MultIlateral InvestMent Fund

A laboratory for experimenting, pioneering, and taking risks to empower dynamic entrepreneurs

and poor and vulnerable populations—their businesses, their farms, and their households

Multilateral Investment FundMember of the IDB Group

WhAt We Do

The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, is the largest provider of technical assistance for private-sector development in Latin America and the Caribbean.

Our core beneficiaries include micro and small businesses, small farms, and poor and vulnerable households.

We design and finance pilot projects to test pioneering approaches to building economic opportunity and decreasing poverty. We evaluate the results and the impact of our projects to identify replicable solutions that can be scaled up by the public and private sectors.

We are committed to sharing the lessons learned from our work so that others can benefit.

Using small projects, we have achieved sustainable transformation in the thinking and behavior of people, policymakers, organizations, and businesses in areas such as microfinance, remittances, venture capital, and training for youth.

Who We AreThe MIF was created in 1993 by 21 donor countries.

Sixty-five percent of the financing we provide is in the form of grants, 25 percent is equity, and 10 percent is loans. We provide the loans and equity alone or in combination with grants—as well as expert advice.

With this wide variety of tools and more than 20 years of experience in the field, we have the flexibility required to tailor solutions to the unique challenges in Latin America and the Caribbean.

We have financed more than $2 billion in grants and investments for private-sector development projects. In all, we have funded more than 1,800 MIF projects with various partners.

Funds for our activities come from contributions made by our member countries—now totaling 39—in Latin America and the Caribbean, North America, Europe, and Asia.

02 03

04 05Where AnD hoW We operAte

We work on the ground and in partnership—with local, mostly private partners—to help fund and carry out pilot projects. Altogether, we have worked with more than 2,000 local partners, most of which had never previously worked with a development bank. Our partners contribute both a significant portion of the project costs and on-the-ground resources to implement operations.

We also work with global partners that share our goals, such as corporations, foundations, and other multilateral organizations. They pool their financial and other resources with ours to jointly solve development challenges.

In addition, we invest in private financial institutions, which lend the resources to micro and small businesses, and in the rapidly developing venture capital and impact investment industries in Latin America and the Caribbean.

Nearly half our staff works out of IDB Group offices in 26 countries in the region. We monitor each project throughout its active stages, perform a thorough evaluation once it is complete, and share lessons learned. Once each pilot is completed, we provide knowledge and tools for the IDB Group or others to scale it up, or to adapt and replicate it for different communities and sectors.

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44Jamaica

65Haiti

101Nicaragua

20BarBados

98HoNduras

18Belize

170mexico

107guatemala

118el salvador

78costa rica

60PaNama

124ecuador

178Peru

134Bolivia

89cHile

17BaHamas

78domiNicaN rePuBlic

38triNidad & toBago

24guyaNa

16suriName

45veNezuela

166colomBia

172Brazil

99uruguay

78Paraguay

100argeNtiNa

projects approved through 2013, by country*

our projects

Financial inclusion » Access to financial services: savings, remittances,

mobile banking, and branchless banking » Microinsurance » Microfinance: microfinance in frontier markets,

rural microfinance, responsible microfinance

Financing for small Businesses

early-stage equityVenture capital and seed funds, early-stage entrepreneurs

Access to FinAnce

Basic services for the PoorWater and sanitation, electricity, and health services

Public-Private Partnerships

climate changeLeveraging natural capital, accessing clean and efficient energy, adapting to climate change

Access to BAsic services AnD Green GroWth

HaitiOur work supports low-income and vulnerable populations in the region’s poorest country, providing access to finance, markets, and basic services, and thereby helping to raise incomes

Women’s economic empowermentOur WEempower initiative works with private-sector organizations to test combinations of products and services that enable women to reach their full economic potential

other AreAs oF Focus

value chainsMicrofranchising, linking small farmers to markets, linking small enterprises to larger companies

regional economic developmentDevelopment approaches that benefit smaller enterprises, tailored to different regions

Business skillsYouth employment and entrepreneurship

Access to MArkets AnD skills 281 regioNal

* Includes projects belonging to the IDB’s Social Entrepreneurship Program, administered by the MIF since 2007

08 09our iMpAct

Together, we can leverage private and public resources to magnify our impact33%

of all microfinance institutions in the region received financing and/or technical assistance

100 millionremittance senders and recipients benefiting from lower transfer fees

6.5 millionmicro borrowers received loans (1/3 of micro borrowers in the region)

200,000+small farmers trained and/or linked to markets

our projects are small, but our aim is systemic impact. And our reach can be very large.

our committed targets are also ambitious

in 5 yeArs

100,000women-led small businesses have

increased access to finance

in 5 yeArs

450,000people start to save

money

in 10 yeArs

1 millionyouth are trained

With our partners, we leveraged an average of $3 for every $1 that our donors contributed*

1:3

1:6

1:1.4

1:5

Overall

Early-stage equity

Grants

Microfinance funds

* The MIF in 2013

10 11hoW to pArtner With us

We partner with nongovernmental organizations, corporations, financial institutions, universities, governments, and other development institutions that share our objectives and have the capacity to mobilize financial and non-financial resources to develop joint projects and programs.

MIF partnerships create innovative solutions, generate knowledge, leverage financial resources, and provide visibility for results.

There are a number of ways to partner with us, including:

» individual projects, for which partners provide funding, networks, and knowledge;

» Programs, in which partners provide similar financial and non-financial support for a larger initiative that may finance several projects; and

» impact investments, in which partners co-invest in venture capital and seed funds, microfinance institutions and funds, and financial institutions piloting innovative finance for smaller businesses.

Each type of collaboration can be tailored to meet partners’ conditions for cooperation, and partners' priority sectors and countries.

investment-based partnerships

Grant-based partnerships

Programs

MiF pArtner

Individual Projects

MiF pArtner

Impact Investments

MiF pArtner

As our pArtner, you cAn use our

network to find the best opportunities

and partners

track record in planning, implementing, and evaluating projects

funding to share risk and overcome market failures

trusted brand and recognized results

framework

local presence in 26 countries in

Latin America and the Caribbean

"Since we were going to try a completely

new business model, it was helpful to have

funding from the MIF to reduce the risk."

Nicola armacost, Managing Director, Arc Finance, a global energy finance nonprofit organization

“The MIF is a laboratory, a means of testing

an experience that we can later amplify,

magnify, and reproduce in a society.”

danilo astori, Vice President of Uruguay

“The MIF has brought information

to the table to improve the quality

of our projects, and opened new

doors to help scale them up.”

eduardo Ferreira, Head of Inclusive Business, Itaú Unibanco, a Brazilian bank

"Funds from the MIF have made it

possible to invest in new ventures that

were seen by others as too risky."

marta cruz, Founder and Director, NXTP Labs, a regional seed fund

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We Work With thousAnDs oF pArtners, incluDinG

Accion InternationalANDIArc FinanceAEDAVSIB LabCatholic Relief ServicesCARIBSAVEClinton Bush Haiti FundCNIColectivo Integral de DesarrolloCONCAMINFINCAThe Ford FoundationFundação Roberto MarinhoFundación AVINAFundación ChileFundación Ciudad del SaberFundación Mario Santo DomingoFundación PROFINFundación SemanaFUNDEMASFUNDESGBA for WomenGlobal PartnershipsHabitat for HumanityICCOInstituto EthosInternational Youth FoundationKorea Small Business Institute

MEDAMercy CorpsNational Audubon SocietyNational GeographicThe Nature ConservancyNeumann FoundationOpportunity InternationalOxfamThe Rainforest AllianceSebraeSNVSwisscontactTechnoServeThe Water InitiativeWomen’s World BankingWorld Resources InstituteWorld VisionWorld Wildlife FundYouth Business International

AlpinaArcos DoradosBloomberg New Energy FinanceCARANA CorporationCaterpillarCEMEXCirque du SoleilCoca-ColaDiageoFEMSA

GerdauGoldman SachsIBMKeurig Green MountainKodakLife TechnologiesManpowerGroupMasisaMasterCardMGM InnovaMicrosoftMitsubishi CorporationMondelēz InternationalNestléOdebrechtPepsiCoPfizerRepsolStarbucksSumitomo CorporationTelefónicaTetra PakUnileverVisaWalmartWhole FoodsYamaha Corporation

BanamexBanco Adopem

Banco ProCreditBancolombiaBBVACitiDeveloping World MarketsDIDFonkozeGrassroots Capital ManagementGray Ghost VenturesGreenMicrofinanceItaú UnibancoJ.P. MorganKeystone Capital Merrill LynchMibancoMicroRateMicroVestOliver WymanOmidyar NetworkRoot CapitalSIDISoros Economic Development FundStorm VenturesSwiss ReTriodos BankVisionFund

Columbia UniversityDuke UniversityFundação Getúlio VargasHarvard UniversityMassachusetts Institute of

TechnologyStanford University

Tecnológico de MonterreyThunderbird School of Global

ManagementUniversidad Autónoma

MetropolitanaUniversidad de Buenos AiresUniversidad de ChileUniversidad del PacíficoUniversidad EARTHUniversity of California at BerkeleyUniversity of MichiganUniversity of South Carolina

AECID (Spain)AFD (France)Australian AidBancóldex (Colombia)Bansefi (Mexico)BDP (Bolivia)Bio (Belgium)BNDES (Brazil)CBI (Netherlands)CAFThe Caribbean Development BankThe China Development BankThe Climate Investment FundsCOFIDE (Peru)COFIDES (Spain)Cooperazione ItalianaCORFO (Chile)CND (Uruguay)Danish Microfinance PartnersDEG (Germany)DFATD (Canada)

The Development Bank of JamaicaDFID (United Kingdom)Embrapa (Brazil)The European Investment BankFinep (Brazil)Finnfund (Finland)FMO (Netherlands)GIZ (Germany)The Global Environment FacilityGobierno de EspañaIDRC (Canada)IICA (United States)JICA (Japan)KfW (Germany)Nafinsa (Mexico)The Nordic Development FundNorfund (Norway)The Norwegian Microfinance

InitiativeOPIC (United States)The People’s Bank of ChinaRDA (Korea)SDC (Switzerland)SECO (Switzerland)SIDA (Sweden)SIFEM/Obviam (Switzerland)Swedfund International (Sweden)UNEPUNFCCCUSAID (United States)The World Bank

corporAtions

FinAnciAl institutions

universities

GovernMents & DevelopMent institutions

nonGovernMentAlorGAnizAtions

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IMpact InvestIng

Investors can co-invest with us in organizations and funds with the goal of generating measurable, beneficial social and environmental results, in addition to financial returns. This can take the form of equity, venture capital, and debt to support impact funds, and grants to accelerate and scale up social enterprises.

We also are looking for investors to participate in the social entrepreneurship Program that we manage for the IDB, which provides loans and grants to rural-based enterprises with no access to commercial finance in the region’s poorest countries. Other investors could join in our new social impact bond facility, an innovative model in which an investor contracts with the public sector to pay for improved social outcomes that result in public savings.

Also, investors could support our Venture Capital Scorecard, developed in partnership with the Latin American Private Equity & Venture Capital Association (LAVCA) and the Economist Intelligence Unit, which provides key information about and analytical tools for venture capital financing.

green growth

Small businesses—and, even more importantly, farmers—must become aware of the effects of climate change and build their resilience to extreme weather events to remain competitive. Partners could work with us on ProadaPt, the first program to focus on climate change adaptation in Latin America and the Caribbean, which we launched with the support of the Nordic Development Fund. Companies that aim to cut emissions and waste, preserve natural capital, and build climate resilience could share networks, know-how, and new technologies.

Also, the region needs to better capitalize on renewable energy and energy efficiency technologies. Businesses and low-income households could leverage clean technologies to save on energy costs and reduce emissions.

We are looking for partners to work with

us on

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Partners also could provide financial resources for our Climatescope report, developed in collaboration with Bloomberg New Energy Finance and globalized with support from the United Kingdom’s Department for International Development and the United States Agency for International Development. The report provides critical information about and analytical tools for renewable energy investment and finance.

FInancIal InclusIon

We are expanding programs that promote both access to and use of credit, savings, payment services, and insurance products. This builds on our 20 years of experience in developing microfinance and remittances to bring low-income people into the financial system.

Programs that incorporate proper targeting and tailored incentives include Prosavings, which develops savings products for recipients of government payments, and the remittances and savings program, for unbanked recipients of the $60 billion annual flow of remittances. Our tec-in program is testing branchless and mobile distribution channels that increase the affordability and diversity of financial products. Financial institutions that want to expand their portfolio of savings products could scale up our pilot efforts.

Also, partners could support our Microscope report, developed in collaboration with the Economist Intelligence Unit, which provides vital information about and analytical tools for financial inclusion.

InclusIve value chaIns

We aim to boost small producers or enterprises by integrating them into the value chains of larger companies. In agriculture, we help farmers improve their quality and production, get certifications, strengthen their cooperatives, and sell products such as coffee or cocoa to higher-value markets. We also work with anchor companies on “greening” the suppliers and distributors in their value chains.

Our regional initiative for inclusive recycling seeks to improve the living standards of 15,000 marginalized “waste pickers” throughout Latin America and the Caribbean by helping them become professional recyclers. Partners from the public, private, and nonprofit sectors could help fund, design, and implement projects that integrate recyclers into public waste management systems and into the recycling efforts of large companies.

InnovatIve FInance For sMall BusInesses

Our pilot efforts include a “psychometric” credit-scoring tool that evaluates an entrepreneur’s personality, intelligence, and character as direct measures of their ability to repay, to foster increased access to financing for smaller businesses.

We also are supporting the creation of crowdfunding platforms, using the Internet to connect traditionally excluded smaller businesses to potential funders. In Mexico, we are working with Anahuac University to engage multiple stakeholders—including the National Institute of Entrepreneurship and the Presidency’s division of National Digital Strategy—to strengthen regulations that govern online transactions and protect sensitive data. Partnering entities, either private or public, could match funding commitments, scale up the initiative, or broaden the reach of the crowdfunding platforms.

Youth econoMIc opportunItY

Our New employment opportunities for youth (Neo) program seeks to boost job entry for 1 million disadvantaged youth, at least half of them female. We are working with the International Youth Foundation and other partners to bring together businesses, governments, providers of youth job services, and youth themselves to design employability strategies. Companies looking for qualified employees could provide training, internships, and jobs.

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For low-income young people who want to start and grow their own businesses, we and the Prince’s Youth Business International together created the youth entrepreneurship Program (yeP). This is building alliances among governments, global and local companies, and civil society groups to provide support services for young entrepreneurs in as many as 10 countries.

woMen’s econoMIc eMpowerMent

Our Women’s economic empowerment (Weempower) initiative works with local private-sector organizations to test combinations of products and services that enable women—entrepreneurs, farmers, women in households, and young women—to reach their full economic potential. As part of this effort, we and the Structured and Corporate Finance Department of the IDB Group have a women entrepreneurshipBanking (weB) program that offers financial institutions debt/risk sharing and technical assistance to test lending models that support the growth of women’s micro, small, and medium-sized businesses.

We also need partners to provide access to markets and financing, business advisory services, and leadership coaching for women-led or women-owned microenterprises with strong growth potential. Partners could include banks customizing their credit operations for women, and companies aiming to include women-led enterprises in their value chains.

Also, partners could provide technical and financial resources for our WEVentureScope report, developed in collaboration with the Economist Intelligence Unit, which is the first comprehensive index that ranks countries in Latin America and the Caribbean according to their environment for women entrepreneurs.

haItI

We have been active in Haiti since 1995 and provided emergency assistance after the 2010 earthquake: $3 million helped 16 of our partners restart their operations and restored the livelihoods of more than 340,000 beneficiaries.

Haiti Hope, a public-private partnership, promotes training for mango producers and connects them to international exporters. The role of one partner, The Coca-Cola Company, varied from significant funding, to assessing the suitability of Haitian mangoes for commercial juices. We also have a remittances-based project in which relatives abroad buy a clean-energy product, such as solar lanterns, from a money-transfer company. Then, a family member in Haiti picks up the product at the transfer company’s local office.

InnovatIon In BasIcs servIces For the poor

An estimated 125 million people in Latin America and the Caribbean lack access to health-care services, 30 million lack safe drinking water, and 100 million live without improved sanitation. Lack of access to basic services has a direct impact on their health and productivity.

To address this, we have championed innovative partnerships between public and private actors to develop sustainable models for providing basic services. In peri-urban areas of Bolivia, we are piloting an ecosystem for market-driven sanitation services that uses local entrepreneurs to create quality, low-cost services and uses social marketing campaigns to boost demand. Partners in the public and private sectors could pool their expertise, financing, and other resources to help with these types of arrangements.

Partners also could support our Infrascope report, developed in collaboration with the Economist Intelligence Unit, which provides key information about and analytical tools for the enabling environment for public-private partnerships.

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the MiF is supporteD By 39 MeMBer countries

ArgentinaBahamasBarbados

BelizeBoliviaBrazil

CanadaChileChina

ColombiaCosta Rica

Dominican RepublicEcuador

El SalvadorFrance

GuatemalaGuyana

HaitiHonduras

ItalyJamaica

JapanKorea

MexicoNetherlands

Nicaragua

PanamaParaguay

PeruPortugal

SpainSurinameSweden

SwitzerlandTrinidad & TobagoUnited Kingdom

United StatesUruguay

Venezuela

multilateral investment Fund1300 New York Avenue, NWWashington, DC 20577United States

mifcontact@iadb.orgwww.fomin.org

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Multilateral Investment FundMember of the IDB Group