Mexican rural microentrepreneurs and households have been hard hit by both systemic and idiosyncratic shocks, such as the inherent volatility associated with agricultural production and the economic crisis of the mid-1990s. Restricted access to financial services has worsened the impact of these shocks by limiting access to safe deposit and remittance services, for example.

AFIRMA is designed to help build an inclusive, sustainable microfinance sector in Mexico as a means to increase access to a range of financial services and contribute to local economic development. It promotes the expansion of financial services to underserved and rural markets by providing targeted technical assistance, training, and grants to financial institutions. The project’s objective is to expand retail operations of financial services companies serving these markets, especially remittances services. In addition, DAI is working to build the capacity of key government agencies that support the industry and to improve the legal, regulatory, and supervisory framework in Mexico through regulatory reform and policy dialogue. [AMAP MF IQC]