Quito, Ecuador, May 6th 2024. The International Finance Corporation (IFC), a member of the World Bank Group, granted a loan of US$50 million to Banco Bolivariano with the objective to increase access to finance for Women-led Small and Medium Enterprises (WSMEs) in Ecuador.
IFC's financing includes a Performance-based Incentive (PBI) from the Women Entrepreneurs Financing Initiative (We-Fi), which will be linked to the achievement of agreed lending targets that support women entrepreneurs. We-Fi works to remove barriers to women's economic empowerment, addressing constraints and opportunities related to finance, market access, capacity and the enabling environment.
Matilde Bordón, IFC Country Manager for Peru, Ecuador and Bolivia, said: "In addition to its strong gender equality component, this loan aimed at supporting WSMEs will contribute to reduce the high rate of labor informality in Ecuador. By generating a cascade effect on the economy of the most vulnerable sectors, this effort with Banco Bolivariano reinforces our financial inclusion strategy for the country and the region".
Obtaining these funds represents an important milestone for Banco Bolivariano, strengthening its capacity to support WSMEs in the country. This not only reaffirms its commitment to the sustainable progress of Ecuador, but also generates a positive impact on the national economy. The financial support strengthens commercial ties with IFC, to jointly promote the empowerment of women entrepreneurs.
Access to finance is a serious growth limitation for SMEs in Ecuador. SMEs in Ecuador represent 25% of the Gross Domestic Product (GDP) and 70% of employment. However, loans to SMEs represent only 3.6% of GDP, which is less than 5.8% in Colombia, 6.7% in Bolivia and 12.3% in Perú. The World Bank Group's Enterprise Survey estimates that 24% of SMEs in Ecuador consider lack of financing as a major barrier to their development.
About Banco Bolivariano
Banco Bolivariano was born in 1980 with solid foundations, currently maintaining the best levels of asset quality, profitability and liquidity within the Ecuadorian financial system. The innovation in its processes, products and services, together with its commitment to society, has allowed it to stand out, for more than 40 years in the industry, achieving high levels of trust and loyalty with its audiences, maintaining its purpose of promoting responsibly and passion for the sustainable development of the country. For more information, visit http://www.bolivariano.com.
About We-Fi
The Women Entrepreneurs Finance Initiative (We-Fi) is a collaborative partnership among the 14 governments that have made financial contributions, six multilateral development banks that serve as implementing partners, and other public and private stakeholders. We-Fi was formally established in October 2017 as a Financial Intermediary Fund hosted by the World Bank. We-Fi invests in programs and projects that help unlock billions of dollars in financing to address the full range of barriers facing women entrepreneurs—increasing access to finance, markets, technology, and mentoring, while strengthening policy, legal and regulatory frameworks. As one of the We-Fi Implementing Partners, IFC supports private sector clients with investment and advisory services to expand financial services and market access for women-owned/led firms, as well as increasing the capacity of women entrepreneurs to run high-growth businesses. For more information, visit www.we-fi.org.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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