Developing Anchor Companies, Boosting Small Producers
Inter-American Development Bank (IDB)
Credit is the boost small and medium enterprises in Latin America need most. It gives companies that anchor distribution chains the opportunity to integrate small producers into the formal economy. This creates jobs, strengthens domestic markets and improves access to exports, while increasing productivity and bettering the lives of poor producers at the base of the pyramid. The Inter-American Development Bank¿s (IDB) Opportunity for the Majority Initiative (OMJ) is lending up to $3 million to the Fondo de Desarrollo de Emprendimientos Socialmente Responsables (PymeCapital S.A,) to bolster small and medium anchor companies in agriculture, agroindustry, manufacturing, and tourism in nine countries in Central and South America. Through the OMJ loan, PymeCapital will provide credit and technical assistance to SMEs and small producers in Bolivia, Nicaragua, Guatemala, Honduras, Dominican Republic, Peru, Paraguay, El Salvador, and Colombia. The fund lends to companies whose business models incorporate social and environmental impact, and is thus developing a portfolio with a triple bottom line.