CABEI, the European Union and the German Government to strengthen the capacities of Central American MSMEs in circular economy

San José, December 14th, 2023.- In order to promote the circular and sustainable economy in the region, the Central American Bank for Economic Integration (CABEI), through the Green MSMEs II Initiative, which has the financial support of the European Union (EU) and the German Government through KfW, signed a non-reimbursable technical cooperation agreement with the Costa Rican company Plataforma Sostenible, creator of the ecoins program, for an amount of US$50,000.

Under this agreement, data will be collected on micro, small and medium-sized enterprises (MSMEs) in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama specializing in the repair of electrical, electronic, textile, and furniture products, among others, to promote their development and strengthen their capacities. This data will be housed in a single platform that will form part of the ecoins Web site, enabling the consolidation of relevant information and linkage with the ecoins incentive system, through which users will be rewarded for actively using these repair services.

In addition, training and business advice will be provided to the participating MSMEs, as well as communication and marketing support to publicize the repair directory that will be made available to the public. It is expected that 25% of the participating MSMEs will be led by women.

The ecoins incentive system is an innovative element that will stimulate the adoption of responsible consumption practices and habits, facilitating waste reduction and encouraging people to make the best use of existing products, opting to repair products instead of discarding them.

The Green MSMEs II Initiative seeks to protect the climate and the environment by creating and offering appropriate, efficient, and sustainable financial products for the sector with investments in renewable energy, energy efficiency, and cleaner production. Through this initiative, more than US$37 million in loans and more than US$3 million in guarantees have been granted at the regional level, protecting more than 10,000 jobs and serving more than 600 MSMEs.

In Costa Rica, more than US$157,000 has been invested in technical assistance in areas such as strengthening technical capacities for financing electric mobility initiatives and projects and investments in fleet renewal with electric vehicles.