Fondo Fiduciario de Capital Social

 

Access FONCAP's Homepage:
http://www.foncap.com.ar/

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.


Our Mission

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.


Goals

  • 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 Argentina's microentrepreneurs.
  • 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 and services.
  • 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 exclusion.

Action Plan

During the next five years, Foncap intends to support the poor microbusiness sector through work in three strategic fields:


Social Organization

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.


Microfinance Operations

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 international agencies.


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: foncapsa@pinos.com