The Female Entrepreneurship Fund (FEF), a sub-fund of the Investing for Development Sicav, has been launched with the aim of expanding access to finance for women entrepreneurs in the Central American Integration System (Sica) region. Experts at the launch event highlighted the fund’s potential to boost inclusion and transform gender finance.
The FEF is a specialized investment vehicle that channels resources from institutional investors to support women entrepreneurs in Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and the Dominican Republic.
The fund, launched in partnership with Luxembourg’s Ministry of Foreign Affairs, Directorate for Development Cooperation (MAEE), the Center for the Promotion of Small and Medium Sized Enterprises (Cenpromype), Total Impact Capital, and Lux Development, aims to increase access to finance for women-led small and medium-sized enterprises.
Experts emphasized the unique challenges faced by women entrepreneurs, including climate change, food insecurity, socio-economic disparities, and limited access to healthcare, education, and economic opportunities. The fund is designed to address the financial barriers often encountered by female entrepreneurs and is expected to channel $40 million into financial institutions that prioritize gender considerations and industry best practices.
Gender finance is crucial for economic competitiveness, as research has shown that women-led businesses are profitable and tend to invest more in human capital and sustainable practices. Experts highlighted the significant gender gap in labor markets and the potential for closing this gap to increase global GDP by up to 25%.
The Female Entrepreneurship Fund is poised to be a catalyst for transformative change, empowering women entrepreneurs and promoting a more inclusive and equitable future in the Sica region.
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