MICROCAPITAL BRIEF: IDB Launches Program to Connect Women’s MSMEs in Latin America, Caribbean with Value Chains, International Trade

The Inter-American Development Bank (IDB), a multilateral financial institution that promotes economic development in Latin America and the Carribbean, has partnered with six large companies to launch a program promoting the integration of women-owned businesses “into foreign trade and regional value chains” as a way to: (1) stimulate the region’s economy as it adjusts to the COVID-19 pandemic; and (2) increase job opportunities and decrease economic and other gaps between men and women. The private firms, whose roles have yet to be clearly defined, are Ireland-based Accenture; Japan-based NEC; and the following US-based companies: Facebook, Mastercard, Visa and Walmart.

The project, titled “Women Growing Together in the Americas,” will use IDB’s online platform “ConnectAmericas for Women” to deliver technical assistance to women-owned micro-, small, and medium-sized enterprises (MSMEs) to improve their: (1) capacity and production processes; (2) technology usage; and (3) access to funding via better fiscal practices and documentation. ConnectAmericas for Women is a free online platform created by IDB and private partners that helps connect 500,000 women leaders of small and medium-sized enterprises to international markets.

IDB Executive Vice President Reina Mejía Chacón stated, “This program is the result of a collaborative process with women entrepreneurs who are already part of the ConnectAmericas for Women network. Furthermore, the technical assistance offered will be accompanied by mentoring, both from successful entrepreneurs and from industry experts… to boost the vision of women entrepreneurs, improve the competitiveness of their companies, and thus, have a multiplier effect in their communities.”

Established in 1958, IDB Group is focused on promoting “environmentally friendly” economic development via improved health, education and infrastructure in Latin America and the Caribbean. During 2019, IDB Group reports having issued USD 13 billion in loans and grants, ending the year with assets of USD 136 billion. The institution is headquartered in the US city of Washington.

The IDB Group comprises IDB; the Inter-American Investment Corporation, which uses the trade name IDB Invest; and the Multilateral Investment Fund, which uses the trade name IDB Lab. Established in 1993, IDB Lab is an “innovation lab” that tests models for facilitating inclusive growth. During the third quarter of 2020, IDB Lab approved 16 projects with a total value of USD 9.5 million.

IDB Invest is the trade name of the Inter-American Investment Corporation. The organization focuses on promoting economic development in Latin America and the Caribbean through projects in agriculture, financial inclusion, sustainable energy and transportation. It is owned by 47 member countries. As of June 2020, IDB Invest had USD 13 billion in assets under management, deployed via 385 clients in 25 countries.

By Harriet Ritchie, Research Associate

Sources and Additional Resources

IDB press release
https://www.iadb.org/en/news/idb-and-partners-launch-program-empower-women-trade-and-global-value-chains

ConnectAmericas for Women homepage
https://women.connectamericas.com/

Women Growing Together in the Americas brochure
https://dev-mujeres-connectamerica.pantheonsite.io/sites/default/files/2021-03/OnePager_CreciendoJuntas_EN.pdf

IDB homepage
https://www.iadb.org/

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