Mexico City, Mexico, January 28, 2010—IFC,
a member of the World Bank Group, has signed a long-term agreement with
Sistema Integral de Abasto Rural, SA CV (Mi Tienda) to help the Mexican
distribution company, known as Mi Tienda, expand its operations.
IFC’s $2.5 million investment will
help create more than 900 direct jobs and sustain the livelihoods of more
than 25,000 rural retail store owners, most of whom are women.
The proposed project consists of the
expansion of Mi Tienda through the development of 36 distribution centers.
The centers will target rural retail stores located in 14,740 villages
with average populations of less than 5,000 inhabitants, reaching a total
of 4.7 million Mexican households. IFC will provide long- term equity
financing to support the company’s expansion and affiliation program.
The project is expected to have a high
development impact on micro, small, and medium enterprises in the
rural parts of Mexico. It will contribute to the development of rural
retail stores by expanding the assortment of products and providing new
“This innovative retail project has
an immense potential for a high development impact by reaching out to the
rural population and enhancing access to finance for women MSME entrepreneurs,”
said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services.
The affiliation program will foster
private sector development by providing training in inventory management,
accounting, and working capital management. It also will reduce working
capital needs and provide access to credit by offering payment facilities
to the stores. While catering to the basic needs of the population
such as food and consumer goods, Mi Tienda’s distribution system also
will also provide a platform for services such as insurance, payment of
utility bills, branchless banking, and micro-credit.
Jose Ignacio Avalos, Mi Tienda’s founder
, said, “We value highly IFC being part of the Mi Tienda project.
IFC’s investment will help us generate a systemic change in Mexican
retailing, resulting in improved services and accesibility to a wider range
of products at affordable prices for rural communities: the underserved
IFC is the only international financial
institution focused exclusively on the private sector, the engine of sustainable
development in emerging markets. Along with IBRD, it is currently seeking
a capital increase to strengthen its ability to create opportunity for
the poor in developing countries—including by helping distribution companies
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled US$14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
About Mi Tienda
Mi Tienda is a privately-held company
engaged in the rural distribution of food and other basic products in Mexico.
The company was founded in 1999 and started its operations as a distribution
center in Atlacomulco in central Mexico. It offers mainly non-perishable
food and personal care distribution to approximately 600 stores located
in rural zones. Mi Tienda also offers affiliation programs to its customers,
hence contributing to increased efficiency and productivity. For
more information, visit http://www.mitienda.com.mx.