The Latin American and Caribbean (LAC) region is expected to shrink between 4.6% and 5.2% because of the coronavirus pandemic. Micro, Small, and Medium Enterprises (MSMEs) are the type of firms most vulnerable to the effects of the coronavirus pandemic. This is particularly concerning because MSMEs are a central pillar of our regional economy—they are 99.5% of firms in LAC, employ 60% of LAC's formal workforce, and contribute one quarter of our region's total productive value.
At the same time, there is an opportunity. Because of the increased perception of risk due to the pandemic, multinational corporations (MNC) have accelerated the reconfiguration of their Global Value Chains (GVCs). Many of these corporations are looking into geographically closer locations to source supplies, relocate or outsource their operations, or invest in existing assets. Such nearshoring is a central priority of the new IADB management and constitutes an opportunity for LAC SMEs that are capable of integration into these GVCs or becoming investment recipients. This TC seeks to harness the IDB's ConnectAmericas assets to help MNCs invest and nearshore in LAC, and help LAC MSMEs tap into this opportunity.
ConnectAmericas (CA) is an IDB-led initiative created to help LAC MSMEs internationalize. It consists of: (i) an online platform (connectamericas.com) where users can apply to purchasing announcements from corporations and governments, contact any of the 450,000 registered business people, access e-learning tools (online courses, webinars, videos, articles, and self-assessment tools), and apply to receive financing from local banks; and (ii) a series of face-to-face, sector or geography-specific business matchmaking events that connect LAC SME exporters with buyers from all over the world.
The CA team has witnessed first-hand the fact that online business connection tools and e-learning have become essential for LAC businesses during the pandemic. The number of new firms registered on CA in 2020 was 40% higher than in 2019. The number of people who accessed increased dramatically—CA webinars viewers increased by 121% in 2020.
Project Detail
Country
Regional
Project Number
RG-T3818
Approval Date
September 9, 2021
Project Status
Implementation
Project Type
Technical Cooperation
Sector
REGIONAL INTEGRATION
Subsector
ENABLING ENVIRONMENT FOR SUSTAINABLE INTEGRATION
Lending Instrument
-
Lending Instrument Code
-
Modality
-
Facility Type
-
Environmental Classification
Likely to cause minimal or no negative environmental and associated social impacts
Total Cost
USD 300,000.00
Country Counterpart Financing
USD 0.00
Original Amount Approved
USD 300,000.00
| Operation Number | Lending Type | Reporting Currency | Reporting Date | Signed Date | Fund | Financial Instrument |
|---|---|---|---|---|---|---|
| ATN/OC-18811-RG | Sovereign Guaranteed | USD - United States Dollar | Ordinary Capital | Nonreimbursable |
- Lending Type: Sovereign Guaranteed
- Reporting Currency: USD - United States Dollar
- Reporting Date:
- Signed Date:
- Fund: Ordinary Capital
- Financial Instrument: Nonreimbursable
Can’t find a document? Request information
https://www.iadb.org/document.cfm?id=EZSHARE-2139115852-17
TC Document
Procurement Plan.pdf
Sep. 17, 2021
English
https://www.iadb.org/document.cfm?id=EZSHARE-2139115852-18
TC Document
TC Document RG-T3818.pdf
Sep. 17, 2021
English
https://www.iadb.org/document.cfm?id=EZSHARE-2139115852-15
TC Document
Results Matrix.pdf
Sep. 17, 2021
English
https://www.iadb.org/document.cfm?id=EZSHARE-2139115852-16
Electronic Links
Terms of Reference_82758.pdf
Sep. 17, 2021
English
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