Female Entrepreneurship Fund - Technical Assistance Facility

Context

Despite growing participation in the labour market, women in the Central American Integration System (SICA) region earn significantly less than men, while facing persistent barriers to economic empowerment, including limited access to finance — particularly in the “missing middle” loan segment (USD 10,000–100,000). To address these needs, the Luxembourg-based  Female Entrepreneurship Fund (FEF) was created in 2024 with the objective of improving financial inclusion for women-led SMEs (WSME) in the region through targeted support to financial institutions committed to gender equality.

Objectives

The Female Entrepreneurship Fund Technical Assistance Facility (FEF-TAF) supports the financial institutions that are investees of the FEF and their WSME clients. Its objective is to enhance financial inclusion by helping these institutions design gender-inclusive products, improve underwriting and marketing processes, and mainstream gender equity within their organisations. Simultaneously, it strengthens the final WSMEs through tailored technical assistance, capacity building, and access to support networks. The project also promotes robust monitoring and knowledge sharing to inform future interventions and improve impact measurement.

Beneficiaries

Direct beneficiaries are the financial institutions that receive FEF investments and their WSME clients. Indirect beneficiaries include other women entrepreneurs who benefit from shared tools, studies, and best practices.

Target geographical area 

The project operates in the SICA region, specifically in Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and the Dominican Republic. San Salvador serves as the operational base, ensuring proximity to key stakeholders and partners.

Stakeholders

Initial funding is provided by Luxembourg’s Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade. LuxDev manages the FEF-TAF, with potential delegation to CENPROMYPE, the regional centre for the promotion of micro and small enterprises within the SICA framework. LuxDev and CENPROMYPE have a strong history of collaboration, particularly in initiatives aimed at promoting female entrepreneurship in Central America. The FEF-TAF is designed as a multi-donor initiative, with governance structures that will evolve as new partners join.