Ecuadorian SMEs have suffered a deficit in access to credit estimated at $ 18,000 million, which is equivalent to 17% of GDP.
IDB Invest granted a loan of up to $ 16 million to Agripac, a company dedicated to the commercialization of agricultural inputs in Ecuador.
The funds will be used to finance Agripac’s investment plan to increase its productivity and strengthen its supply chain, in order to increase the number of small and medium-sized companies (SMEs) that provide inputs to the company and to increase the number of SMEs. led by women in its portfolio of financed clients.
The project will provide financing to incorporate a new feed production line, which will be used in two of the divisions with the highest growth projection for Agripac: pet food and shrimp feed.
In Ecuador, 99% of the companies are micro, small and medium-sized companies and generate 60% of the employment.
In Ecuador, 99% of the companies are micro, small and medium-sized companies and generate 60% of the employment.
SMEs have suffered a deficit in access to credit estimated at $ 18,000 million, which is equivalent to 17% of GDP. The credit gap is particularly wide for women, who own only 14% of the country’s SMEs.
The project will have mixed financing incentives from the Financing of Women Entrepreneurs (We-Fi) initiative, an alliance that aims to promote financing and access to markets for companies that are led by women.
Through the We-Fi program, IDB Invest will grant Agripac payments of up to $ 400,000, subject to the fulfillment of growth goals in its female SME client base to whom it grants financing in the sale of agricultural inputs.
The Rimpe, ‘a mix’ between RISE and RIM, generates expectations for its early entry into force
The company aims to reach 1,400 women-led SMEs with access to financing by 2026.
In addition, IDB Invest will provide technical advisory services on gender, diversity and inclusion in order to develop a strategy that helps Agripac increase the number of female SME clients in its portfolio and create solid foundations that allow it to better serve this segment.
This funding is expected to contribute to two of the Sustainable Development Goals (SDGs): gender equality (SDG 5) and decent work and economic growth (SDG 8). (I)
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