Initial Impacts of a Microcredit Program in Colombia

In July 2009, Fundación Bavaria, the Corporate Social Responsibility (CSR) branch of Colombia’s largest beverage company, Bavaria, a subsidiary of SABMiller plc, created Oportunidades Bavaria. The program’s mission is to benefit the poorest communities in Colombia through social investment programs aimed at job and revenue creation, poverty alleviation, and improved quality of life. To this end, Oportunidades Bavaria devised a microcredit program targeting small shop owners (tenderos) and forged strategic alliances with financial institutions that offer the best microfinance programs in Colombia (Banco Agrario, Bancolombia, Financiera Comultrasan). As of today, nearly 5,000 tenderos have benefited from Oportunidades Bavaria.

After more than two years of operation, Fundación Bavaria recognized the need to institute a periodic review of the microcredit program. Fundación Bavaria therefore invited a SIPA team to conduct an initial impact evaluation of its microcredit program during its time of operation in Bogotá, Boyacá and Bucaramanga. The SIPA team had three main objectives. First, to quantify the impact that Fundación Bavaria’s microcredit program has had on tenderos’ businesses and quality of life. Second, to explore the relationship between tenderos and Fundación Bavaria. Third, to extract valuable lessons and recommendations to inform future decisions on improving the program. With these objectives in mind the team investigated whether this particular microfinance model constitutes an effective tool for tackling social and economic development in Colombia.