New Partnership to Develop Business Models for Providing Basic Services to the BoP in Latin America
Tuesday, January 8, 2013
The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, in partnership with the IDB’s Opportunities for the Majority (OMJ), have established a $3.4 million regional program to support the development of new business models for the provision of basic services, such as health care, education, energy and water, to poor populations in Latin America and the Caribbean, also known as the base of the pyramid (BoP).
The new “Program to Accelerate Businesses Providing Basic Services to Poor and Low-income Populations” will supply grants and technical assistance of up to $250,000 to private sector companies to support them in the design and pilot testing of new business models and distribution channels for the low-income marketplace, thereby accelerating their market readiness and preparing them to become eligible for loans to scale up their business models.
“This new program contributes to narrow the financing and knowledge gap in the development of business models targeted to meet the needs of the base of the pyramid in Latin America,” said MIF project team leader David Bloomgarden. “It levels the playing field for companies to overcome hurdles in the provision of basic services to the poor and to make their models attractive to impact investors.”