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Luxembourg Cooperation Annual Report 2019
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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.

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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.