USAID Administrator Samantha Power today announced that USAID will work with Congress to provide an initial investment of more than $6 million to launch the Feed the Future Rural Financial Inclusion Program in Guatemala. The announcement was made during the administrator's visit to Guatemala to attend President Arévalo's inauguration.
In line with the goals of the Biden-Harris Administration's Root Cause Strategy, this new financial inclusion program will support Guatemala's new administration's goals of increasing employment and improving living conditions in rural areas. The Rural Financial Inclusion Program is part of USAID's $72.5 million investment in Guatemala over three years through the U.S. government's Feed the Future Initiative. Additionally, USAID highlighted the recently announced $133.5 million in fiscal year (FY) 2022 development funding for the implementation of Guatemala's Root Cause Strategy.
This project aims to improve rural Guatemala by improving financial literacy, establishing partnerships with financial institutions, and helping financial service providers offer better products and reach underserved rural markets. It aims to help people overcome prevailing financial access constraints and encourage investment in the agricultural sector to improve food security. and resilience. The project will focus on vulnerable and underserved populations, particularly women, youth and indigenous communities.
Through this project, USAID will expand Guatemalans' access to formal financial services such as loans, savings accounts, and digital mobile services. Increase your savings rate. And we help them make more informed decisions about their finances. The project will also enable MSMEs and farmers to access and manage credit and use remittances sent to Guatemala to support social and economic development at the community level. By expanding access to financial services, the program will enable farmers and agribusinesses to adopt climate-smart agricultural practices that help increase incomes and food production and improve resilience to shocks. This program will contribute to our economic development efforts under Central America Forward, particularly supporting capacity building for small and medium-sized enterprises and financing for new investments.
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