For this, the World Bank will invest U.S. $ 32 million to strengthen their added value products, quality and integration to national and international markets.
"Micro, small and medium businesses generate most jobs in Guatemala, this project will help promote growth and increase their productivity," said Felipe Jaramillo, World Bank Director for Central America. "Promoting sustainable growth and productivity is one of the World Bank´s priorities for the Partnership Strategy with Guatemala," he added.
The project has three components:
1. Improving business climate and support services for MSMEs, addressing specific public policy issues as well as institutional and regulatory conditions which significantly affect micro, small and medium enterprises. Facilitate access of MSMEs to financial services and certification and supporting business developments.
2. Creating more efficient production lines: in tourism, the project will support micro, small and medium companies in developing attractive tourist packages and deal with physical, regulatory and marketing restrictions. Activities may include creation of safe areas for hiking paths, guide training, institutional strengthening for tourism entities and introduction of clean technologies in small hotels. In agribusiness, the project will help promote productive private investment and creation of jobs by developing new products, the use of relevant market information, creating niche markets and certification.
3. Monitoring and Project Management: This component will strengthen MINECO´s implementation, financial management and progress monitoring of the project by providing technical assistance, equipment and training.
The $ 32 million loan for this project includes a 25 year repayment term with a 10 year grace period.
Some 500 micro, small and medium enterprises from the tourism area will be trained on business management over the next three years.
The program is called Tourism Development in South West Nicaragua, and is funded by the Dutch government and the "Centro Empresarial Pellas" Foundation. 500 SMEs will be chosen to participate, among hotels, restaurants, food suppliers, tour operators and agricultural tourism.
The loan will benefit more than 1,000 producers by providing access to co-financing for enhancing trade capacity.
A press release by Inter-American Development Bank (IDB) states:
The Inter-American Development Bank (IDB) has approved a loan of U.S. $30 million to El Salvador for the program of Development Support Production for International Integration, which will increase the ability of micro, small and medium enterprises (MSMEs) to participate in national, regional and global value chains.
Government officials announced a $ 4 million fund to strengthen performance of MSMEs.
Mario Cerna, Vice Minister of Commerce and Industry told the media: "It is a state investment in micro, small and medium businesses looking to become more efficient, that is to reduce costs and produce more, but also implement technology in their production processes, including helping them to innovate their products."
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