CABEI, KfW, and the European Union build on more than a decade of green financing and support for MSMEs in El Salvador

San Salvador, April17, 2026— After 10 years of implementation, the Green MSMEs Initiative II concludes with significant results for El Salvador: more than US$28.3 million in green loans disbursed, 2,006 jobs created, and more than 1,400 people who have developed new skills. CABEI, the Government of Germany through KfW, and the European Union celebrated this conclusion with an event where beneficiaries shared how the initiative transformed their business models.

Since its launch, the Initiative—which has been implemented in Central America and Panama—has facilitated access to financing and non-reimbursable technical assistance to help micro, small, and medium-sized enterprises (MSMEs) invest in renewable energy, energy efficiency, and cleaner production, thereby contributing to environmental protection and the country’s sustainable economic development.

In El Salvador, 59% of the funds were allocated to economic recovery efforts in the context of the COVID-19 pandemic, while 41% were directed toward environmental investments, demonstrating a link between economic recovery and sustainability. Through four financial intermediaries (IFIs), 96 subloans were disbursed, directly benefiting companies that currently provide 2,006 jobs. 

Through the partial credit guarantee component, more than US$117,000 was provided, expanding access to credit for MSMEs with limited credit histories. In addition, through technical cooperation and business support initiatives, more than 1,400 people were trained on key topics to strengthen sustainability and competitiveness.

The Green MSMEs Initiative II has been a key driver in strengthening the business ecosystem in Central America, aiming to protect the climate and the environment by promoting financial instruments for investments in renewable energy, energy efficiency, and cleaner production.

Article originally published on CABEI's website.