Repsol YPF

“Micro-loans for female entrepreneurs in Orellana, Ecuador”

Promote Gender Equality and Empower Women

Repsol YPF through the Repsol YPF Ecuador Foundation has created a micro-loans programme to improve the standard of living for Ecuador’s underprivileged population. Through this novel programme, business management techniques have been taught to 600 female small business owners from Orellana province. Also, the respective loans were granted to them for productive, income-generating activities. For example, they have been trained to start up small businesses, such as businesses for prepared food, supplies, clothing, cosmetics, perfumes, sewing, beauty, and raising and selling chicken. Most of them have increased their income, and some have doubled it, thus benefiting their families and the community.

More Information:

I. Background

Currently, an international consensus exists about the positive impact of small loans and their influence on the development of the rural sectors and the informal economy in developing countries. This is reflected in the increasingly prominent role that micro-financial programs are playing in the Committee of Development Aid (CAD) countries and in the planning of the development of many receiving countries. Thus, the number of experiences and ways to act are multiplied.

After just one year of operation, the Repsol YPF Ecuador Foundation launched an important micro-loans programme, after having developed solid foundations in the matter. These foundations are reflected in their Micro-finance Policies Manual. Up to now, it has granted, through intermediary organizations, micro-loans to over 9,000 people in almost every part of the country.

II. Description 

The micro-loan is a tool for reducing the differences in the access to financial resources, by allowing certain people who do not fulfil the criteria set down by formal banks to also access financing sources. It is estimated that 80% of third world homes cannot access formal financing. This includes the vast majority of the poor in developing countries, as it is the case in Ecuador.

The Repsol YPF Ecuador Foundation, with micro-loans programme, promotes progress in the standard of living of the poor. To date, the Foundation has invested 357 thousand dollars in this programme, and has promised to invest over 580 thousand dollars of refundable funds until 2007. Additionally, the loans are accompanied by training and education for recipients. The education includes managing the loan, creation or development of small businesses and / or specific workshops depending on the type of activity of the beneficiaries. A crucial element that the Foundation defends in these projects is the promotion of saving among the users of the micro-loans.

III. Description: “Loans for female small business owners in Orellana, Ecuador”

In the eastern province, Orellana, where poverty rates are very high, the community banks are one of few options for the underprivileged urban population to improve their situation.

The Ecuador “Populorum Progressio” Fund (FEPP) is an entity that works on development projects and grants through its Saving and Credit Cooperative, Codesarrollo, micro-loans to rural, indigenous and underprivileged urban sectors.

To collaborate in the generation of women's economic income in underprivileged urban sectors, the Repsol YPF Foundation supports a small business loans project of the FEPP. 

a) Investment: 

US$100,000

b) Beneficiaries: 

600 women from Orellana and Sacha, both mixed race and indigenous kichwas and shuaras- woman that before were devoting themselves to domestic tasks and to the care of their children, which is why they had few opportunities to improve their situation.

c) Objective

With the project, these women have qualified in business management skills (accounting and administration) and they have received loans for productive income-generating activities of, increasing their income. Some of them have doubled their income- thus benefiting their families and the community.