CABEI’s Green MSME Initiative and Red Katalysis Promote Financial Inclusion in Rural Areas of Nicaragua

Matagalpa, Nicaragua, July 23, 2014.- In order to promote financial inclusion and ensure that rural areas have access to financial services and appropriate green technologies in supply chains, the Central American Bank for Economic Integration (CABEI), through its Green MSME Initiative, and Red Katalysis held the event, "Green MSMEs and Microfinance."

In the framework of the event, Green MSME Initiative Project Manager, Maria Engracia de Trinidad, explained the activity’s objectives:

• Learn about the different types of projects in energy efficiency, renewable energy and clean production, environment-friendly technologies that are being executed and financed.
• Make an objective evaluation of the ability of microfinance institutions (MFIs) to generate a competitive range of products and financial services for the MSME sector in order to boost investment in small energy efficiency and renewable energy projects that use clean production, environmentally friendly technologies.
• Ensure that the participants understand the key elements for diagnosis and analysis of business opportunities in a value chain environment.
• Present a new incentive mechanism for Nicaraguan MSMEs in order to identify opportunities for energy conservation and efficiency and encourage the participants to use alternative energy sources in their businesses.
• Provide training sessions to incentivize MIFs to promote the implementation of Energy Efficiency and Renewable Energy projects to MSMEs.

Mrs. Maria Engracia de Trinidad added that the Green MSME Initiative was established by CABEI with financial support from the German Government’s KfW Development Bank and the European Union’s Latin American Investment Facility (LAIF) with the purpose of contributing to climate and environmental protection through the actions of MSMEs and promoting environmental investment in the areas of energy efficiency and renewable energy.

The Initiative has regional coverage and finances projects with resources channeled through Central American financial institutions at a competitive fixed rate with a term of up to 10 years, depending on whether the resources are destined for energy efficiency or renewable energy investment.