Proparco, DEG and other lenders support women's entrepreneurship in Brazil with Sicredi

It is an opportunity for Proparco to renew its partnership with Sicredi, Brazilian cooperative financial institution (7th largest financial institution in Brazil), which includes 105 credit unions organised in 5 central cooperatives with 2,6 thousand agencies. In 2021, Proparco granted Sicredi a first credit facility within the framework of the Friendship Facility already managed by Proparco’s partner, the German development finance institution DEG.

Sicredi has always been present in the southern and central regions of Brazil, but since 2017 it has experienced significant growth in the northern region, empowering the local economy (the cooperative is the only financial institution in more than 200 towns) and promoting financial inclusion. Sicredi has incorporated a women's business ownership programme into its strategy and promotes female entrepreneurship through regional initiatives. In Bahia, the "Donas do Negocio" programme offers women specific financial products and training to strengthen their entrepreneurial skills.

The proposed financing is part of the 2X Challenge, which aims to reduce gender inequalities in access to credit. This commitment by development finance institutions collectively mobilises private sector investment in developing country markets to increase women's access to leadership opportunities, quality jobs, finance, business support, products, and services that improve their participation and access to the economy.

Small and medium-sized enterprises (SMEs) represent a significant proportion of Brazilian businesses in all market segments. SMEs account for 30% of Brazil's GDP, 72% of the country's jobs and 99% of all businesses. However, a recent study by the Inter-American Development Bank and the Brazilian Development Association found that only 30% of employers and 35% of business owners in Brazil are women.

Over the past five years, Brazil has seen increased activity in this area, with the development of organisations to support women entrepreneurs, increased investor interest in women entrepreneurs, campaigns to raise their profile and the issuance of targeted corporate bonds to support women entrepreneurs. However, there is still a gap between the demand for capital from high-growth women entrepreneurs and the supply of suitable products.

This agreement should contribute to the achievement of the four United Nations Sustainable Development Goal: Gender equality (SDG 5), decent work and economic growth (SDG 8), build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation (SDG 9), partnership for the goal (SDG 17). In addition, the use of funds by gender fits well with Proparco's impact strategy (third axis - reducing inequalities), which is also partly targeted at poor regions and therefore aims to reduce geographical inequalities.