The SGB Sector in 2017

Donor Funding: Central America and Mexico

Mexico drives SME-related donor funding in Central America and Mexico

Over the past decade, donor funding for SMEs in Central America and Mexico has been characterized by sharp increases and declines due to large, sporadic loans. For example, in 2011, a US $87 million disbursement by the Inter-American Development Bank (IADB) to the Government of Mexico made up 64 percent of SME-related funding in Mexico and 47 percent of all funding in Central America and Mexico.

In 2013, donor funding for SME-related activities reached a 10-year high of nearly US $400 million primarily due to 3 large disbursements to Guatemala, El Salvador, and Mexico, all provided by the IADB. Over the past 5 years, the IADB has disbursed over US $865 million to the region.

In 2016, overall donor disbursements for SME-related activities decreased in every country in the region except Mexico, which was a large enough increase to cause on overall increase in SME-related funding in the region from 2015.

Total donor funding for the region has remained around US $6.5 billion since 2012. In 2016, three percent of donor funding for the region was disbursed to SME-related projects. As a percentage of total donor funding, Costa Rica has led the region since 2012, although it has never received more than US $83 million in SME-related disbursements in a year. In 2016, SME-related disbursements reached a five-year low of three percent.

In 2013, over 22 percent of donor funding in El Salvador was disbursed for SME-related projects, in large part due to one US $70 million loan provided by the IADB for a financing partnership with Banco Agricola.

  • CAM
  • Costa Rica
  • El Salvador
  • Guatemala
  • Mexico