Meeting Basic Needs through an Innovative Credit Program in Colombia
Inter-American Development Bank (IDB)
Becoming part of the formal economy, opening a bank account, or obtaining a loan continues to be a challenge for the majority of base-of-the-pyramid (BOP) families in Colombia. In areas where Promigas operates, one-third of families earn too little to purchase basic goods and services, and just over half of them earn enough to pay for their living expenses. Almost 87% of the company's residential customers are among the poorest in Colombia. Energy holding company Promigas S.A. E.S.P. designs, builds, operates and maintains natural gas transmission and distribution systems in Colombia. It distributes gas in 13 of the country's 32 departments and electricity in the Cauca department. By offering credit to mostly unbanked, largely BOP utility customers through its Brilla program, Promigas and its gas distributors are improving the quality of life of their customers.