US partners with Guatemala for economic drive

By Mayora IP

Following a bilateral meeting with Guatemalan President Alejandro Giammattei on June 7, 2021, United States Vice President Kamala Harris announced several actions in light of the US desire to partner with Guatemala to address the economic, governance, and security conditions influencing out-migration.

The United States Agency for International Development (USAID( will provide up to USD7.5 million over three years, and leverage at least USD22.5million from the private sector, to support entrepreneurs and innovators – including women, youth, and indigenous people – who are creating technology-driven, market-led solutions to development challenges in regions of high out-migration. 
Support will be directed toward entrepreneurs and businesses that are working in multiple sectors, including renewable energy, climate resilience, health, water and sanitation, telemedicine, agriculture, fintech, and education. 

Initial private sector partners include the Argidius Foundation, PriceSmart Foundation, IDC-Alterna, Pomona Impact, Ascenda, and Valhalla Capital which have committed to invest and grant over USD10 million in support of this initiative.
The US will also seek to provide a USD 15 million loan portfolio guaranty facility to Banco Internacional to help increase lending to local micro, small, and medium businesses particularly to those businesses operating in the western highlands and other areas of Guatemala where there are high rates of out-migration.

“In addition to our bilateral work and our multilateral efforts, the United States is building a comprehensive strategy with international institutions, with allies around the globe, with foundations here in the United States, and the private sector as well as community organizations. I believe that the work, in order to be successful, will require everyone’s participation. And I do believe, also, it will require political will and hard work to accomplish our goals. But I am confident that we can make progress and create a sense of hope for the future,” said Vice President Kamala Harris after its virtual bilateral meeting with President Giammattei.

Days before the meeting, Vice President Harris unveiled the agreements of several US companies and organizations to invest in Guatemala and other countries of the region as part of Joe Biden administration’s efforts to deal with a surge of migrants from Central America at the US southern border.

Microsoft Corp., MasterCard Inc. and Nestlé SA are among the companies involved in internet access, banking services and food investments in the country, according to The Wall Street Journal.