By Blessing Chinagorom
The United States through the US Agency for International Development (USAID) has scheduled plan to provide initial investment of over $6 million to launch Feed the Future rural financial inclusion program in Guatemala.
USAID Administrator Samantha Power made the announcement while the Administrator was in Guatemala to attend the inauguration of the newly elected President, Bernardo Arévalo.
In line with the objectives of the Biden-Harris Administration’s Root Causes Strategy, this new financial inclusion program will support the new Guatemalan administration’s goal of increasing employment and improving living conditions in rural areas.
The rural financial inclusion program is part of USAID’s $72.5 million investment over three years in Guatemala through the U.S. government’s Feed the Future initiative.
In addition, USAID highlighted $133.5 million in fiscal year (FY) 2022 development funding recently announced for implementation of the Root Causes Strategy for Guatemala.
By enhancing financial literacy, establishing partnerships with financial institutions, and helping financial service providers reach underserved rural markets with better, tailored products.
The project aims to help rural Guatemalans overcome common financial access constraints and will encourage investment in the agriculture sector to improve food security and resilience.
Also, the project will focus specifically on vulnerable or underserved populations, particularly women, youth and indigenous communities.
Through the project, USAID will expand Guatemalans’ use of formal financial services such as loans, savings accounts and digital mobile services; increase their savings rates; and help them make more informed decisions regarding their finances.
The project also will empower micro, small, and medium enterprises and farmers to access and manage credit and harness remittances sent back to Guatemala to aid in community-level social and economic development.
By expanding access to financial services, this program will allow farmers and agribusinesses to increase their incomes and food production, and adopt climate smart agricultural practices that will help them become more resilient to shocks.
This program contributes to our economic development efforts under Central America Forward, specifically to build capacity in small- and medium-sized enterprises and assist them to access financing for new investment.
While making her remarks at the inauguration, Power said no matter who voted for in the election, the President’s inauguration was a victory for Guatemalans. “Despite obstacles that persisted up until moments before the inauguration, the will of the Guatemalan people triumphed”.
Adding that the United States is investing $219 million this coming year in these and other efforts. “We are getting started on day one of the Arévalo administration to expand our investments in the prosperity and security of the Guatemalan people.
“With 44 percent of the rural population, particularly women and indigenous communities, lacking access to financial services, we are kicking off a new program to connect farmers with the savings and loan services that they need to invest in their own futures.
“Over the next five years, we aim to reach 100,000 rural Guatemalans with the services, generate $20 million in agricultural related financing to boost prosperity in farming communities across the country”, USAID Administrator said.