Fabretto, an educational NGO in Nicaragua, recently received grants from two entities managed by the US-based Inter-American Development Bank Group: (1) USD 1 million from the Japan Special Fund for Poverty Reduction (JPO), which is funded the government of Japan and; (2) USD 800,000 from the Multilateral Investment Fund (MIF), which assists organizations in Latin America and the Caribbean. The funds are to be used for a project aiming to increase the incomes and employability levels of 1,800 youth in three rural areas of Nicaragua, the Southern Caribbean Coast Autonomous Region, Madriz, and Nueva Segovia.
The project, which has been approved by the country’s Ministry of Education, is slated to make use of the “Tutorial Learning System,” an education program that combines vocational training with traditional curricula. In parallel with the classroom training, students receive support in initiatives such as running their own business ventures, organizing health and clean-up campaigns, and conducting agricultural activities with improved productivity and climate adaptation techniques . Through this approach, Fabretto aims to connect youth to “high-value supply chains and markets,” thereby reducing youth migration to urban areas .
As of December 2015, MIF had a portfolio of approximately USD 612 million financing 435 projects. The JPO financed technical cooperation projects with USD 6.5 million in 2014.
By Sharanya Madhavan, Research Associate
About Multilateral Investment Fund (MIF)
The Multilateral Investment Fund (MIF), founded in 1993 and administered by the US-based Inter-American Development Bank (IDB), was created to provide funding to micro- and small enterprises (MSEs) in Latin America and the Caribbean. Its donors comprise 39 member countries, which are located in Latin America and the Caribbean, North America, Europe and Asia. It also receives financing from private investors including the Latin American Challenge Investment Fund, the Emergency Liquidity Facility and Accion Investments. As of December 2015, MIF had a portfolio of approximately USD 612 million financing 435 projects.
About Inter-American Development Bank Group:
The Inter-American Development Bank Group is composed of three entities; the Inter-American Development Bank (IDB), the Inter-American Investment Corporation (IIC) and THE Multilateral Investment Fund (MIF). IDB, a multilateral development bank, finances economic and social development projects in Latin America and the Caribbean. IIC funds private sector and state-owned enterprises in the region through loans, equity investments and guarantees. MIF tests models for private-sector involvement in solving development issues. With 48 member countries, IDB has offices in Washington, DC; Japan; France; and all 26 member countries in Latin America and the Caribbean. As of 2015, IDB Group reported total assets of USD 111 billion. It disbursed loans and guarantees worth USD 10 billion in 2015.
About the Japan Special Fund for Poverty Reduction
The Japan Special Fund for Poverty Reduction was created in 2001 by the government of Japan as a part of the Japanese Trust Funds at the Inter-American Development Bank. The initial fund size was USD 30 million, It’s goal to provide technical support to member countries of the IDB Group in serving poor people and other vulnerable groups. The JPO financed technical cooperation projects with USD 6.5 million in 2014.
Sources and Additional Resources:
 InnoveEdu: Tutorial Learning System
MicroCapital Universe: Inter-American Development Bank Group
MicroCapital Universe: Japan Special Fund for Poverty Reduction
MicroCapital Universe: Multilateral Investment Fund
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month Find out more at https://www.microcapital.org/products-page/