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Introduction

In Central America, Luxembourg remains an important partner in the Central American Integration System (SICA), particularly through a regional project for female entrepreneurs with the centre for the promotion of micro and small business in Central America (CENPROMYPE).

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This is a key project dedicated to equality between men and women and the promotion of women’s economic rights. Having performed well in the past, the programme is currently in its second phase of funding, which runs until 2025.

Luxembourg has extended until 2022 its support to migrant women in Central America and the Dominican Republic through a regional project with the International Organization for Migration (IOM). In addition, Luxembourg 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. In Central America, Luxembourg has also continued its support for the promotion of inclusive finance, particularly microfinance. Thus, the Luxembourg association Appui au Développement Autonome (ADA - Support for Autonomous Development) supports the regional network REDCAMIF, the aim of which is to promote the microfinance industry. Finally, Luxembourg 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 making them economically, ecologically and socially viable by engaging local communities while guaranteeing a long-term yield for investors in the fund.