Skip to main content

MIF approves $5.4 million to support small business in Mexico, Panama and Paraguay

The Multilateral Investment Fund announced the approval today of a $5.4 million in grants and investments to support small businesses, start-ups, exports, and new technologies in Mexico, Panama and Paraguay.

MIF will support the Fondo Chihuahua - a venture capital fund in Mexico that promotes small business start-ups and new technologies and expansion projects for existing businesses to enhance competitiveness - with a $4 million investment and a grant for technical assistance totaling $110,000.

For Panama, the MIF approved a $622,300 grant to the Cámara de Comercio, Industrias y Agricultura de Panamá to expand the use of information and communication technology and e-commerce.

MIF also approved a $640,000 grant to Paraguay to streamline export-processing procedures, especially in nontraditional products.

Fondo Chihuahua

The Chihuahua venture capital fund is expected to provide capital for up to 20 firms with fewer than 100 employees and sales and assets of less than $5 million in the state of Chihuahua.

A $110,000 MIF grant for the Chihuahua program will finance a Best Practices Manual for new fund managers, dissemination of the manual and managerial experience among prospective new fund administrators and financial institutions in Mexico, and promotion of a culture of venture capital as an instrument to finance innovation and business start-ups.

Creation of the fund - with investments by the state of Chihuahua and Nacional Financieras S.A., as well as by the private sector and the IDB - reflects the strategy of Chihuahua State to diversify the economy by stimulating business activity and competitiveness.

Located on the border with the United States, the state of Chihuahua has experienced an economic transformation since the creation of the North American Free Trade Area. Industry has become increasingly important, particularly in the maquiladora sector. The state’s economy was sharply affected by the recent slowdown of the U.S. economy, highlighting the need for greater diversification and competitiveness.

The Multilateral Investment Fund, an independent fund administered by the Inter-American Development Bank, is dedicated to promoting private sector development in Latin America and the Caribbean through grants and investments.

Jump back to top