UNLEASHING SMEs IN PARAGUAY
Financial institutions are unique in their ability to reach small businesses — protecting liquidity, jobs and business continuity. In 2022, the OPEC Fund provided US$260 million to financial institutions in partner countries worldwide.
Small and medium-sized enterprises (SMEs) make up the lion’s share of Paraguay’s economy, representing 97 percent of all businesses and creating more than three quarters of all employment. Yet they face an obstacle that cuts across many developing countries: the gap in access to credit, which limits economic growth. The SME finance gap in the country is about US$4 billion, with around 20 percent of SMEs lacking sufficient access to financial products. Together with Banco Sudameris, the OPEC Fund is helping to support this key segment of the economy. Paraguay is a major producer and exporter of agricultural and livestock products such as soy, wheat, corn and meat — making agribusiness- es the main driver of the economy and food exports the main source of foreign currency. With the COVID-19 pandemic and subsequent economic slowdown, all of this was disrupted and agribusinesses were particularly hard hit. Now, thanks to a US$30 million loan from the OPEC Fund, many have found relief. Forty percent of the loan is allocated to agribusiness SMEs,
while 60 percent will finance SMEs in a range of other sectors to promote job creation and economic recovery. The loan has already facilitated access to funds for more than 50 SMEs, addressing liquidity needs, protecting jobs and ensuring business continuity.
97 %
Share of SMEs in Paraguay’s economy US$4 BN SME finance gap in Paraguay
US$30 MN Loan from the OPEC Fund to Banco Sudameris
The commitment of the OPEC Fund since 2019 has been accompanied by a major effort by Sudameris in support of the SME sector. That sector was profoundly affected by the pan- demic but has since recovered and is growing again thanks to this support. Sudameris is extremely grateful for the trust placed in us by the OPEC Fund, and we are sure that our coop- eration will continue to grow year after year.
JERONIMO NASSER CEO, Banco Sudameris
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