Countries
Mexico, Cuba, Colombia, Ecuador, Bolivia

Local project partner
Bolivia: FinRural, UNIBOL, ASFI
Ecuador: Banco Codesarrollo, SEPS, SB, ICORED
Columbia: FNG, Banco Contactar, ASOMICROFINANZAS, BdO
Cuba: BANDEC, BPA, BCC, UNDP
Mexico: Alianza, Concamex, FIRA, INMUJERES, CNBV, UN Women

German Project partner
OSV, Sparkasse Bamberg, Sparkasse Bremen

Donor
BMZ

Duration
01.10.2022 - 30.09.2027

In Central America, MSMEs are the national economic engine and support the economic development of national economies, particularly through their contribution to promoting employment. Despite their economic relevance, the majority of MSMEs face major challenges because, among other things, they often have no or only limited access to formal financing options. Companies in the agricultural sector face particular challenges: a large proportion of the food they need is imported, which can lead to dependencies and possibly inadequate food supplies. Therefore, strengthening domestic agriculture is a high political and economic priority. At the same time, however, existing structures often hinder the development process.

The project objective is to promote sustainable finance for MSMEs and rural areas with a particular focus on improving access to financial services for women-led MSMEs. To this end, the following priorities are being pursued:

• Improving access to financial services, their use and the quality of products and advice.
• Increasing financial inclusion and the productivity and sustainability of farmers and agricultural MSMEs through the use of financial technologies.
• Professionalisation of partner institutions to offer improved financial services for MSMEs, particularly in rural regions, including the promotion of innovation, accessibility and the implementation of new technologies.
• Strengthening the financial inclusion of women in business through needs-based educational programs and the expansion of structures and networks.

Tasks

• Development of new needs-based financial products and adaptation of existing financial products to the needs of MSMEs, smallholder farmers and women in business, as well as pilot implementation of these products
• Promoting innovation and implementing innovative and digital financial solutions, e.g. to optimize loan evaluation
• Supporting the implementation of professionalization measures at partner institutions, e.g. for digital transformation and improving advisory services
• Implementation of national and institutional strategies for financial and entrepreneurial education for smallholder farmers and women in business