More than $40 million in financing across three projects will support long-term and inclusive economic development
GUATEMALA CITY, Guatemala – U.S. Vice President Kamala Harris today highlighted U.S. International Development Finance Corporation (DFC) investment projects in Guatemala, including investments in affordable housing, support for agri-business, and financing for micro, small, and medium enterprises (MSMEs). The more than $40 million from DFC is promoting economic development and improving the lives of women and communities across Guatemala.
DFC seeks to provide a $19.5 million loan to Destino Desarrollos to help build approximately 2,000 homes and associated infrastructure in Guatemala’s secondary and tertiary cities of Quetzaltenango, Coban, and Fraijanes. This project will create safe and affordable family housing and support hundreds of local jobs within the community.
DFC also intends to provide $6 million to a project with Agro Atlantic that will assist with the expansion of a banana plantation. The project is helping create hundreds of new jobs, including those targeted to women, in southwest Guatemala.
In addition, in collaboration with USAID, DFC seeks to provide a $15 million loan portfolio guaranty facility to Interbanco (Banco Internacional) to help increase lending to local MSMEs, particularly businesses operating in the western highlands, and other areas of Guatemala where there is a high propensity to migrate and a concentration of indigenous communities. DFC’s $15 million loan portfolio guaranty would catalyze up to $30 million in local currency lending to MSMEs.
“DFC’s investments in Guatemala will work to address many of the drivers of migration by improving economic conditions for families and communities across the country, including indigenous populations,” said Algene Sajery, Vice President of DFC’s Office of External Affairs and Head of Global Gender Equity Initiatives. “Through projects like these, the United States is furthering its commitment to support economic development in the Northern Triangle, and making a difference in the lives of women and families as they build better lives at home.”
DFC’s investments in Guatemala advance U.S. priorities in the region, including addressing the root causes of migration. DFC projects in key areas like affordable housing and providing financing for small businesses support inclusive economic development, and in doing so, improve conditions on the ground that encourage more private sector activity. DFC investments also address food insecurity, one of the main drivers of migration, by providing financing to boost innovation and adaptability in the agricultural sector.
The investments highlighted by Vice President Harris advance U.S. priorities in Central America, which include boosting economic development and supporting women and youth in the region. DFC is committed to addressing the most important challenges impacting Latin America and the Caribbean. The agency is supporting investments in Guatemala as well as El Salvador and Honduras, in addition to helping businesses in Mexico, Colombia, Brazil, and emerging economies across the region.
U.S. International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.