Our Mission and Vision
MFX is a socially-oriented company that supports lending to entrepreneurs in low-income countries with affordable hedging products and risk management education.
MFX believes that when currency and market risks are managed effectively, development lending can reach more entrepreneurs at the bottom of the pyramid, more sustainably, at a lower cost. Better access to foreign exchange hedging tools and financial education can therefore have a profound effect on global poverty.
Starting in 2005, a group of microfinance organizations – lenders, investors, raters, networks, and foundations – came together to seek an answer to the growing problem of currency risk in the microfinance industry. Led by many of the most prominent organizations in microfinance, this group initiated and funded an industry project to develop a comprehensive solution.
In 2009, MFX Solutions (MFX) was born as an organization dedicated to providing microfinance lenders with affordable and accessible hedging instruments and the know-how to better manage currency risk. The founders’ vision was to create a full-service industry initiative, serving both microfinance funds and institutions with education and hedging products.
In the past 4 years, MFX has hedged nearly half a billion dollars in loans to small entrepreneurs in developing countries covering more than 30 currencies. Its education programs have trained hundreds of micro-SME bankers across Africa on managing market risk. MFX won the award as the best product innovation in microfinance in 2010 and the G-20 SME Finance Challenge in 2011.
Looking ahead MFX is expanding its service to the growing field of Impact Investing where access to local currency and hedging products are also major challenges.
To read more about FX risk and the microfinance industry please visit our Education Center.