Central America

Regional cooperation

Introduction

In Central America, as part of the Central American Integration System (SICA) – an organisation based in San Salvador, bringing together eight countries in the sub-region – in 2019 Luxembourg’s Development Cooperation financed a regional project supporting female entrepreneurship with CENPROMYPE and another regional project promoting the political, economic and social inclusion and participation of vulnerable groups in collaboration with the Secretariat General of SICA. In 2019, Luxembourg also signed a new regional project with the International Organization for Migration (IOM) to support migrant women in Central America and the Dominican Republic.

In addition, Luxembourg’s Development Cooperation and the Ministry of Finance have jointly contributed to the third phase of the technical assistance programme of CAPTAC-DR (International Monetary Fund Regional technical assistance centre for Central America, Panama and the Dominican Republic). This centre, based in Guatemala, provides technical assistance to its seven member countries, targeting capacity-building for institutions and individuals for the implementation of sound macroeconomic and financial policies. Luxembourg participated in the second phase of this project.

In Central America, Luxembourg has also continued its support for the promotion of inclusive finance, particularly microfinance. Thus, the Luxembourg association ADA (Appui au Développement Autonome - Support for Autonomous Development) supports the regional network REDCAMIF, the aim of which is to promote the microfinance industry. Finally, Luxembourg’s Development Cooperation finances the technical assistance programme of the Luxembourg ‘Forestry and Climate Change Fund (FCCF), which has the aim of re-establishing secondary or degraded forest areas in Central America and make them economically, ecologically and socially viable by engaging local communities while guaranteeing a long-term yield for investors in the fund.

Highlighted project

In Central America, as part of the Central American Integration System (SICA) – an organisation based in San Salvador, bringing together eight countries in the sub-region (Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and the Dominican Republic) – in 2019 Luxembourg’s Development Cooperation financed a regional project supporting female entrepreneurship with CENPROMYPE. This regional project, based on gender, is dedicated to equality between men and women and the promotion of women’s economic rights. The regional project’s overall objective is to support female entrepreneurs in the area of competitive micro, small and medium enterprises and enable them to become financially independent. Capacity-building and vocational training are key elements of the programme.

Priority areas of intervention

Gender equality
Reduced inequalities
Climate action
Partnerships

Key achievements 2019

Women account for 53% of the Central American migrant population, and social and physical violence are major risks during the migration process. Through Luxembourg’s support for the IMO’s regional programme hundreds of migrant women have had access to psycho-social and economic support since the start of this year.
In order to protect the environment in Central America, Luxembourg is continuing its regional commitment to the Forestry and Climate Change Fund by supporting local communities and re-establishing forest areas that have been degraded as a result of climate change.