IDB Invest, Agripac Seek to Reduce Ecuador's Gender Gap, Promote SMEs
IDB Invest has provided a senior loan pf up to $16 million to Agripac, a company dedicated to the commercialization of agricultural inputs in Ecuador.
The funds will be used to finance Agripac's investment plan to increase its productivity and strengthen its supply chain, increasing the number of small and medium-sized enterprises (SMEs) that provide inputs to the company and boosting the number of SMEs led by women in your portfolio of clients with financing.
The project will provide financing to incorporate a new feed production line that will be used in two of the divisions with the highest growth projection for Agripac, pet food and shrimp feed.
Additionally, this project will have blended financing incentives from the Women Entrepreneurs Financing Initiative (We-Fi), an alliance that aims to promote financing and access to markets for companies that are led by women. Through the We-Fi program, IDB Invest will grant Agripac payments of up to $400,000, subject to the fulfilment of ambitious growth goals in the women-led SMEs segment receiving financing in the sale of agricultural inputs. Agripac aims to hit a target of 1,400 women-led SMEs with access to financing by 2026.
In addition, IDB Invest will provide technical advisory services on Gender, Diversity and Inclusion in order to develop a strategy that helps Agripac meet the objective of increasing the number of women SMEs in its portfolio and help them create solid bases that allow serving best to this segment.
This financing demonstrates IDB Invest's commitment to supporting SMEs and reducing the gender gap in a country where 99% of companies in Ecuador are micro and SMEs and generate 60% of employment. Ecuadorian SMEs have suffered a deficit in access to credit estimated at $18 billion, equivalent to 17% of the country’s GDP. The credit gap is particularly wide for women, who own only 14% of the country's SMEs.
This funding is expected to contribute to two of the Sustainable Development Goals (SDGs): Gender Equality (SDG 5) and Decent work and economic growth (SDG 8).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Agripac is a leading company in the production of inputs for the agricultural, shrimp, poultry and livestock sectors, among others. Itsstrategy has always been sustainable growth within the Ecuadorian market. In 2020 Agripac posted $340 million in revenue and currently has 195 branches in the Ecuadorian territory.