Brazil okays Accion’s microfinance plans in Amazon

Microfinance Focus, Nov. 24, 2009: Brazil President Luiz Inácio Lula da Silva has approved the Accion International’s application to begin microfinance oeprations in Amazon, Brazil’s remote north-eastern state.

Acción International, a global microfinance fund manager, was granted permission last week by President Lula to establish operations in Brazil, said a statement from Accion.

The operations will be a branch of the Accion Global Gateway Fund based in Manaus, the capital of the state Amazonas in Brazil’s remote north-east. Accion says it will be focusing on providing credit and other financial services to promote economic development while protecting the rainforest environment. Operations are expected to begin in early 2010.

Despite a strong ecotourism industry, Amazon is the second poorest state in Brazil. Accion estimates that microfinance has only reached 8-10% of an estimated 1 million micro-entrepreneurs in the state.

The Accion Global Gateway Fund currently holds shares in microfinance institutions in Bolivia, Colombia, El Salvador, Haiti, India, Mexico, Panama, Paraguay, Peru and Venezuela.

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