Local Economic Development in the Golfo de Fonseca Region

Project completed

The project aims a promoting inclusive economic development in the Golfo de Fonseca Region, which is part of the dry tropical zone of Central America, particularly vulnerable to the effects of climate change. The single phase Project, co-financed with IDB’s Multilateral Investment Fund, allows influencing larger IDB private sector operations and hence up-scaling. It also helps shaping SDC’s planned programs in local economic and value chain development.

Country/region Topic Period Budget
Honduras
Employment & economic development
SME development
Employment creation
Financial policy
18.11.2013 - 30.06.2018
CHF 3'600'000
Background

The Golfo de Fonseca region has a low to medium development index; poverty levels are higher than national average. The Region has a dynamic commercial sector for non-traditional agro-exports offering relatively few jobs, and a dominant basic grain production by small producers providing 45% of all “Jobs”, albeit with very low incomes. The region is highly vulnerable to climate change. Donor presence is less than in the poorest eastern parts of Honduras. Golfo de Fonseca is a pilot region for the regional development approach under the National Development plan and has thus a relatively well developed dialogue and planning platform involving private and public stakeholders.

Objectives

Contribute to sustainable poverty reduction through inclusive local economic development that generates income and employment in the Golfo de Fonseca region, emphasizing systemic competitiveness and environmental sustainability and social inclusiveness. The Swiss Co-financing is not earmarked. It aims at influencing larger future IDB operations (up-scaling) and gaining further experiences that will help shaping planned SDC program in inclusive economic development.

Target groups
  • Small producers (13’000 of which 30% woman) and businesses engaged in the selected value chains.
  • Private sector associations, civil society organizations and local governments

The program targets sustaining 13’500 existing jobs and generating 5500 new jobs.

Medium-term outcomes

The overall objective is to contribute to inclusive economic development through

  1. Promoting local economic development in the environmentally vulnerable Golfo de Fonseca Region
  2. Generating income and employment along selected value chains in a pro-poor manner involving small producers and businesses.

Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
International Financial Institution (IFI)
Private sector
  • Interamerican Development Bank (other)
  • Foreign private sector South/East
  • Swisscontact


Budget Current phase Swiss budget CHF   3'600'000 Swiss disbursement to date CHF   3'392'422
Project phases

Phase 1 18.11.2013 - 30.06.2018   (Completed)