MicroVest has announced an investment of $3.4 million in Financiera Finexpar, the largest non-banking, deposit-taking financial institution in Paraguay. The investment aims to enhance access to financing for agricultural and livestock Small and Medium Enterprises (SMEs) in the country, helping Finexpar to expand its lending capabilities and serve a larger number of underserved SMEs.
Today, Paraguay is the world’s leading exporter of organic sugar, the second-largest producer and exporter of stevia, and the eighth-largest exporter of beef (International Trade Administration). Despite these achievements, the agricultural sector, which employs approximately 20% of the country’s workforce (World Bank, 2021), faces limited support from financial institutions mainly due to perceived risks, including the sector’s vulnerability to climate change.
Financiera Finexpar was founded in 1989 as a small family enterprise and has since evolved into Paraguay’s largest non-banking, deposit-taking financial institution. Offering a comprehensive range of financial services, including loans and insurance products, Finexpar has emerged as a notable contributor to the development of Paraguay’s agricultural sector by providing crucial funding to farmers.
This is MicroVest’s first investment in the company.