Expansion of Locally-Managed Microcredit Funds to Mitigate Rural Poverty

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The project goal is to strengthen the rural poverty reduction strategy being pursued under the Program to Promote Rights and Peace-building Networks (PDRCP). The purpose is to improve living conditions for rural families in Colombia by helping prospective entrepreneurs to start, finance, and develop production-oriented projects and microenterprises. The main expected outcomes at the end of the project are as follows: (i) 150 rural municipios in Colombia will have funds for financing production-oriented projects and microenterprises of the vulnerable population; (ii) some 4,100 people will have been served by the Social Support Networks (RSAs) through business training and participation in income-generating projects; (iii) at least 1,300 new rural income-generating projects will have been financed by the National Network of Community-managed Funds (RNFA); (iv) the RNFA will achieve a loan repayment rate of 95%; (v) 1,000 low-income people with RNFA experience will have been coached on submitting loan applications to the local microfinance system, and at least 600 will obtain loans outside the RNFA; and (vi) project beneficiary incomes will increase by 20% on average.