Tegucigalpa, November 27, 2017 (AFP SERVICES/CABEI). - With an ambitious program of financial inclusion, the Central American Bank for Economic Integration (CABEI) has placed € 50.0 million on loan to promote entrepreneurship and sustainable innovation among young people in the region.
 
The Initiative for the Development of Business Ideas and Acceleration of Central American MSMEs (DINAMICA Initiative) is a tripartite effort of the Central American Bank for Economic Integration (CABEI), the Government of Germany through KfW and the European Union as part of its Latin American Investment Facility (LAIF). The initiative seeks to strengthen the financial sector at a regional level and promote adequate access to financial services for new, young and/or innovative MSMEs.

From 2016 to date, the DINAMICA Initiative has disbursed a total of US$20.0 million through loans with 14 financial institutions in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica.

With the goal that young Central Americans will fulfill their business ideas, the DINAMICA Initiative has approved US$506.4 thousand in technical cooperation for the Dynamic Business Development Centers (CDEDS). Likewise through these centers, the Initiative has allocated technical cooperation amounting to US$744.1 thousand to provide support to 72 MSMEs and promote a consolidated entrepreneurial culture in the region.

In addition, financial intermediary institutions have been supported with technical cooperation amounting to US$906.0 thousand for responsible finance programs, financial education and credit products with a focus on innovation and entrepreneurship.

The resources are channeled by the financial institutions with which CABEI maintains a global line of credit. The non-reimbursable technical cooperation is managed by the CDEDS at a regional level.

Most significant allies for the entrepreneurial ecosystem

In its search to support innovation, the DINAMICA Initiative joins in the celebration of the region’s entrepreneurship month; a month that highlights those entrepreneurs who take risks and face important challenges and difficulties. On this occasion, support was provided in the following activities:
 
Guatemala: Innovation Award in Guatemala, Heroes Fest Guatemala.
El Salvador: Innovaemprene Awards. Program: 2nd National Entrepreneurship Forum "Entrepreneurial Financing," PIXELS Awards 2017.
Nicaragua: Business Entrepreneurship Forum: Women of All Ages Undertake Innovation and the Markets.
Costa Rica: YOEMPRENDEDOR Business Competition in Central America; Productive Chaining Week for Dynamic MSMEs; and Global Entrepreneurship Week - GEW 2017

Undoubtedly there are many challenges in the field; for 2018, CABEI ratifies its commitment to the promotion of the initiative in the Central American region in order to support the creation of young and innovative companies.