CABEI, KfW and European Union allocate an additional 75.89 million euros to promote programs for entrepreneurs and Green MSMEs
The entities have played a key role in promoting entrepreneurship, innovation, employment, environmental care and economic growth in the region.
Tegucigalpa, December 10, 2019.- The Central American Bank for Economic Integration (CABEI), the Government of Germany through KfW and the European Union by means of its Latin American Investment Facility (LAIF) signed three contracts that will provide resources to entrepreneurs as well as Micro, Small and Medium Enterprises (MSMEs).
Three contracts were signed by CABEI Executive President Dr. Dante Mossi and the Director of KfW's Regional Agency for El Salvador, Guatemala, Honduras, CABEI and SICA, Jan Stilke.
The first contract, which targets the second phase of the Initiative for the Development of Business Ideas and Acceleration of Central American MSMEs (DINAMICA Initiative), involves an amount of up to 50 million euros from the Government of Germany through the KfW Development Bank to be used for financing entrepreneurship, innovation and MSMEs.
The second contract involves non-reimbursable financial contribution in the amount of up to 11 million 920 thousand euros financed by the European Union through LAIF and managed by KfW to implement the Seed Capital Risk and Technical Assistance financial instruments within the framework of the second phase of the DINAMICA Initiative. The beneficiaries of the instrument's resources will be composed of entrepreneurs and new, young and innovative MSMEs that are at an early stage in their business development process and seek to launch their business idea. The DINAMICA II Initiative has a total of up to EUR 74.86 million to continue promoting MSMEs in the Central American region, including Panama and the Dominican Republic.
In addition, CABEI signed a third non-reimbursable financial contribution contract financed by the European Union through LAIF and administered by KfW for an amount of up to 13 million 970 thousand euros to provide Partial Credit Guarantees and Technical Assistance within the framework of the Second phase of the MSME Energy Investment Facility (Green MSME Initiative). The initiative is part of Phase II of the Green MSME Program, which was subscribed in 2016, for an amount of up to 40 million euros with funds from the Government of Germany through KfW. The program has a total of EUR 63.10 million to promote environmentally sustainable projects in MSMEs of the region.
At the signing ceremony, CABEI Executive President, Dr. Dante Mossi, highlighted the impact of these agreements on the generation and maintenance of employment in the region, especially by contributing to companies that due to their size or type of activity have difficulties to be able to execute their investments.
CABEI, KfW and the European Union are pleased to initiate a new phase of the programs that have been successful during their first phase in laying the foundations to create the basic conditions that favor the financial inclusion of micro, small and medium enterprises as an significant engine of the economies of the countries of the Central American region.
The institutions highlighted the importance of the MSME sector as a key player for achieving a boost to economic growth and employment in the Central American region.
“Working together to support MSMEs in Central America”