Financial support for MSMEs on the rise
With support from the EU, the German Government’s KfW Development Bank and CABEI signed an agreement to benefit 10 Honduran MSMEs.
Tegucigalpa, February 16, 2017-Today, the Central American Bank for Economic Integration (CABEI), which is the executing organization of the Initiative for the Development of Business Ideas and Acceleration of Central American MSMEs (DINAMICA), signed a non-reimbursable technical cooperation agreement with the Honduran Foundation for the Integral Development of Women and the Family (FUDEIMFA). The agreement seeks to promote access of micro, small and medium enterprises (MSMEs) to new markets by innovating product supply and diversifying marketing channels.
The agreement involves supporting 10 MSMEs located in the departments of Comayagua, Copán and Intibucá to strengthen their administrative, operational and productive capacities in order to enter new markets with diversified products and promote innovative marketing mechanisms.
The agreement was signed by CABEI Country Manager for Honduras, Mr. Pedro Emilio Banegas, and FUDEIMFA President, Attorney Johana Vijil. Representatives of the German KfW Cooperation Bank and a Delegation of the European Union served as witnesses.
DINAMICA, an initiative to strengthen MSMEs in the region
DINAMICA is a tripartite project implemented by CABEI with support from the German KfW Development Bank and development cooperation funds from the European Union through its Latin American Investment Facility (LAIF). It seeks to reinforce the MSME business ecosystem, especially for new, young and/or innovative MSMEs, in addition to strengthening the financial sector at a regional level in order to promote improved access to financial services for beneficiary MSMEs.
Beneficiaries of the Initiative include the Dynamic Business Development Centers and MSMEs assigned to these centers in the countries of Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama.
DINAMICA has EUR50 million in funding from Germany and CABEI, which will be channeled regionally through the Bank’s network of intermediary financial institutions and EUR3.8 million in non-reimbursable resources from the European Union through its Latin American Investment Facility for technical assistance and training.