Accion invests US$1.9mn in CrediConfia to expand to underserved regions

US microfinance nonprofit Accion International has completed a US$1.9mn investment in Mexican microfinance institution CrediConfia, the companies said in a statement. The investment provides Accion with a 9% stake in CrediConfia, a board seat, and the opportunity to engage in a three-year service contract providing governance, management and technical support to CrediConfia. A key element of that support will include deployment of Accion's credit technology to expand CrediConfia's products to underserved regions, improve loan quality and profitability. CrediConfia provides financial services to micro-entrepreneurs and low-income households in rural and semi-urban areas in east-central Mexico. Currently, CrediConfia serves 21,500 clients through a network of 25 branches covering the states of Mexico, Puebla, Hidalgo and Michoacán.