The "Fondo Fiduciario de Capital Social" - Foncap - is an innovative
initiative of the government of Argentina to eradicate poverty and alleviate
unemployment. Foncap's aim is to create a self-sustaining and
self-perpetuating scheme that will provide financial and non-financial
services to poor microentrepreneurs across the country.
Foncap is the response to an unavoidable reality: the existence of no less
than one million microentrepreneurs in Argentina, striving to survive amidst
one of the toughest economic transformations of the country's recent
history. Instead of charity, these hard-working men and women seek the tools
that will enable them to help and employ themselves. And, as shown
throughout the world, one of the most powerful tools against poverty is the
access to credit.
To eliminate the barriers to access to credit for the poor microbusiness
sector, safeguarding its representative organization and its relations with
the other sectors of society.
- To promote the creation, training, strengthening, expansion and
specialization of Argentina's practitioner sector. Equipped with $40 million
in capital, to be managed for the next 30 years and with the most current
microenterprise methodology, Foncap's goal is to facilitate the construction
of the infrastructure necessary to scale-up financial services to
- To transfer and adapt to the practitioners' sector microcredit
technologies and methodologies proven to be effective and efficient.
- To lead to the development and utilization of financial institutions and
instruments suitable to meet the special circumstances of poor microbusinesses.
- To strengthen and boost the process for creation of traditional business
groupings such as trade associations and business chambers of commerce in
order to facilitate their access to the supply and demand markets of goods
- To promote discussion and thought on the situation of poverty stricken
microbusinesses creating a framework that will encourage the creation of a
strategy and of policies that will contribute to fight poverty and social
During the next five years, Foncap intends to support the poor microbusiness
sector through work in three strategic fields:
Creation, development and boosting of at least 27 well-established and
self-sufficient microbusiness chambers and/or trade associations throughout
the country in order to facilitate a representative social organization.
Creation of at least 60 microbanks in order to serve 50,000 active
customers keeping a loan portfolio of $40,000,000. Foncap will foster the
creation of new microlending programs based on supplementation criteria
among the National Government, the private sector, the social sector and
Research and Analysis
Promotion of discussions and thought on the situation of poor
microbusinesses, creating the conceptual framework contemplating its present
situation and its development perspective as a strategy in the fight against
poverty and social exclusion.
Other Microcrofinance Programs
In Argentina, Foncap paves the way to continue the path opened by some
pioneering experiences such as Fundación Emprender, Fundecch, Fundación
Banco de la Provincia de Córdoba, Idemi and Fundación Banco Mundial de la
Mujer, to name a few.
For inquiries please contact:
- Margarita Carles
- Communications Coordinator
- Avenida Paseo Colon 315, 6th. floor
- (1063) Buenos Aires, Argentina
- Tel/Fax: 54-1-345-0621-22-23
- Email: firstname.lastname@example.org