CABEI organizes workshop to formulate a regional seed capital proposal

Tegucigalpa, October 25, 2017.-In order to define the criteria that will enable the formulation of a seed capital component for entrepreneurs, the Central American Bank for Economic Integration (CABEI), regional MSME authorities and strategic partners, such as the Center for the Promotion of Micro and Small Enterprises (CENPROMYPE ) and the Union of Small and Medium Enterprises of Panama (UNPYME) are carrying out a two-dayworkshop denominated, “Formulation of a Regional Seed Capital Proposal in Panama.”

The workshop will allow national MSME authorities from the SICA countries to share their experiences in the implementation of seed capital programs that serve to identify lessons learned and successful implementation mechanisms to be incorporated into the CABEI regional seed capital proposal.

The Seed Capital component will be a fundamental element of CABEI’s Initiative for the Development of Business Ideas and Acceleration of Central American MSMEs (DINAMICA Initiative), which is a financial intermediation program that seeks to strengthen the MSME business ecosystem, especially for new, young and/or innovative MSMEs, and to reinforce the financial sector in order to promote adequate access to financial services for these MSMEs.

The DINAMICA Initiative contributes funds to the countries of the Central American Integration System (SICA) from its EUR 50 million in available reimbursable resources from the Government of Germany through the KfW Development Bank and CABEI; the resources are channeled by means of loans to regional MSMEs through CABEI’s network of intermediary financial institutions. In addition, the Initiative has a component of EUR 3.8 million from the European Union aimed at technical assistance and training for the Dynamic Business Development Centers, MSMEs affiliated to these centers and intermediary financial institutions.

The DINAMICA Initiative is a tripartite program of the Central American Bank for Economic Integration (CABEI), which is the executing entity; the Government of Germany through KfW; and the European Union as part of its Latin American Investment Facility (LAIF).