Four initiatives have been launched and $585 million committed to the textiles and fashion industry in Northern Central America by the US administration and the non-profit Partnership for Central America.
- These investments aim to help address the root causes of migration by creating economic opportunity in the region. As part of this public-private partnership, 47 companies and organisations are collaborating across financial services, textiles and apparel, agriculture, technology, telecommunications and nonprofit sectors to strengthen the region’s economic security.
The Initiatives: The following companies and organisations announced major new commitments on 6 February:
- Columbia Sportswear Company has committed to purchase up to $200 million in products, which will create more than 6,900 jobs in the region over the next five years, in an industry where these jobs are primarily held by women.
- Nextil has committed to invest $40 million in two new state-of-the art production facilities in Guatemala to produce garments and elastic fabrics for the shapewear and sportswear markets. The facilities are estimated to create over 1,300 direct jobs and 3,000 indirect jobs.
- Protela-Colombia has committed to invest $45 million in the construction of a vertically integrated textile manufacturing facility in Guatemala to supply fabric for garment manufacturers in Central America, which is expected to directly employ 400 people.
- Target has committed to increase its spending by $300 million in El Salvador, Guatemala, and Honduras by 2023. They will deepen existing relationships with vendors and intend to expand vendor relationships who have a presence in all three countries in the region.
Related Initiatives: Some other initiatives will help business across sectors:
- Chegg, an online-learning platform providing support to students who either cannot access the formal education system or have limited opportunity to benefit from such a structure, has committed to certifying 100,000 young adult learners with its online learning platform and technical skilling certification programs in Honduras by 2030, with a particular focus on underserved women.
- Microwd, which offers microloans to female entrepreneurs, has committed to issue $20 million in debt to continue expansion in El Salvador and Honduras and reach 10,000 additional female entrepreneurs in Northern Central America by 2024, paving the path to impact 1 million people by 2030.
- Millicom has committed to invest an additional $350 million by 2025 to expand and maintain its mobile and broadband networks in Guatemala, Honduras, and El Salvador, adding to its initial $700 million commitment for 2023 and 2024.
- Root Capital has committed to lend an additional $1.4 million to small businesses in Guatemala in partnership with USAID as part of the Guatemala Entrepreneurship Development and Innovation (GEDI) Initiative, which will help these businesses grow and access capital.
- Viamericas, a US company offering international money transfers, has committed to increase by 20 percentage points over 5 years the number of remittances that are deposited into accounts instead of paid out directly in cash in Northern Central America, resulting in increased digital financial inclusion on the receiving end.
The Partnership: The Partnership for Central America is a non-profit organisation that was developed in support of Kamala Harris, US Vice-President’s ‘Call to Action’. The Partnership aims to coordinate practical solutions to advance economic opportunity, address urgent climate, education and health challenges, and promote long-term investments and workforce capability in support of a vision of hope for Central America.
- The Call to Action is facilitated through a public-private partnership between the State Department and the independent organisation the Partnership for Central America, in close coordination with USAID.
