On March 22, the Japan International Cooperation Agency (JICA) signed a loan agreement with Banco Improsa of the Republic of Costa Rica for up to US$15 million to improve access to finance and promote the economic empowerment of women in Costa Rica’s micro, small, and medium enterprises (MSME).
Costa Rica’s micro, small, and medium enterprises (MSMEs) represent 97.5% of the country’s private enterprises and 34% of total employment, making them an important social and economic infrastructure. The country has a high unemployment rate of 12%, making the promotion of MSMEs, which contribute to people’s employment, an important issue. On the other hand, it is estimated that more than 40% of MSMEs in the country do not have sufficient access to formal finance and rely on consumer credit with high interest rates that threaten their business sustainability.
Banco Improsa positions lending to MSMEs as its core business, providing financial products such as short- and long-term loans that meet the needs of borrowers. Banco Improsa also supports the growth of MSMEs as a strategic partner by providing management support. 30% of the loans provided by JICA under this project will be used to finance women-owned enterprises.
This project will contribute to sustainable industrial development through improved access to finance for MSMEs in Costa Rica, and will contribute to SDG Goal 5 (Achieve gender equality), Goal 8 (Improve access to financial services), Goal 9 (Promote industrialization through increased access to finance for small businesses), and Goal 17 (Promote Partnership).
© Source JICA