FACT SHEET: VICE PRESIDENT HARRIS AND THE PARTNERSHIP FOR CENTRAL AMERICA ANNOUNCE A TOTAL OF $4.2B COMMITTED TO SUPPORT NORTHERN CENTRAL AMERICA AND THE LAUNCH OF CENTRAL AMERICA FORWARD
MONDAY, FEBRUARY 6, 2023 – WASHINGTON, D.C. – Vice President Harris convened a group of more than twenty CEOs and executives from the Partnership for Central America to announce $4B in private sector investment mobilized to support Northern Central America and launch “Central America Forward.” Consistent with the broader goals of the U.S. government’s Root Causes Strategy, Central America Forward is an expanded initiative that combines private sector investments with the Partnership for Central America and fresh U.S. government commitments to promote economic development, support business-enabling reforms, and facilitate investment-led growth in the region. Participating partners in the discussion included: Jonathan Fantini-Porter, CEO and Executive Director of The Partnership for Central America; Ajay Banga, Co-Chair of The Partnership for Central America and Executive Chairman of General Atlantic; Blanca Treviño, Co-Chair of The Partnership for Central America and CEO of Softtek; Ray Chambers, Vice-Chairman of The Partnership for Central America and Ambassador to the World Health Organization for Global Strategy and Health Financing; Marisol Argueta, Head of Latin America, World Economic Forum; Kate Behncken, President, Microsoft Philanthropies; Timothy Boyle, CEO of Columbia Sportswear; John Fillmore, President of Chegg Skilling, Chegg; Michael Froman, Vice-Chairman & President of Strategic Growth, Mastercard; Dr. Ilan Goldfajn, President, Inter-American Development Bank; Christina Hennington, EVP & Chief Growth Officer of Target; Sergio Isaza, Global Brands Director, Protela-Colombia; Jack Leslie, Chairman Emeritus of Weber Shandwick; Manuel Martos, CEO of Nextil; Luis Alberto-Moreno, Managing Director of Allen & Co.; Mauricio Ramos, CEO of Millicom Tigo; Gloria Steele, COO, CARE; Dr. Michelle Williams, Dean of Faculty at the Harvard T.H. Chan School of Public Health; Hamdi Ulukaya, CEO of Chobani.
Since May 2021, the Call to Action has galvanized over $4 billion in private sector commitments to Central America. To date, more than $650 million has been deployed on the ground, including over $100 million in El Salvador, $215 million in Guatemala, and $337 million in Honduras. Call to Action and PCA partners have mobilized more than $110 in gender-related investments to the region through In Her Hands, a women’s economic empowerment initiative launched by Vice President Harris and the Partnership for Central America in June 2022. Investments are allocated on a sector basis, with a particular focus on job creation across textile and apparel manufacturing and agriculture–and the infrastructure to create an enabling environment required to support those jobs in digital access, financial inclusion, workforce development and education. Specific investments include:
Job Creation: Partners have created 15,000 jobs to date, and committed to create an additional 50,000 jobs;
Textile and Apparel Manufacturing: Partners have deployed over $70M in investment and brands have expanded sourcing from the region by over $270M;
Agriculture: Agriculture partners have invested over $65M in building capacity in the region. Agriculture companies have also increased sourcing by over $100M. Partners have supported over 4,500 farmers to date;
Digital Access: Our partners have committed to connect more than four million people to the internet, with additional commitments in the pipeline.
Financial Inclusion: Our partners aim to bring seven million people into the formal financial economy; to date, over one million people have been brought into the formal financial economy including over 60,000 newly banked individuals;
Skilling and Workforce Development: Our partners have committed to train over four million people by 2027. Over 160,000 learners have been reached through skilling programs led by partners and over 3,500 learners have been reached with programs that lead to certification or employment.
Building off this groundbreaking progress, Central America Forward will serve as the overarching framework for combined U.S. government-PCA collaboration in pursuit of economic opportunity in Northern Central America, combining Call to Action private sector commitments and U.S. government programming, resources, and assistance to address the economic drivers of irregular migration.
To support the elevated collaboration under Central America Forward, the U.S. government and PCA developed a Five-Year Strategic Plan that will guide collaborative efforts over the longer-term. The Central America Forward framework prioritizes the following pillars to create economic opportunity and sustainably address the principal drivers of irregular migration: 1) developing metrics to assess impact; 2) promoting economic development; 3) fostering a business-enabling environment; 4) deploying CSR and data analysis tools; and 5) coordinating messaging to send a signal of hope to potential migrants.
To operationalize the Five-Year Strategic Plan, PCA developed a 5-year Implementation Strategy to drive progress towards job creation and sustainable income generation, financial inclusion, digital access, gender equity, education and training, access to capital, and infrastructure:
Job Creation & Sustainable Income: Create and secure jobs for 460,000 individuals across manufacturing, textiles and business services by 2027. Increase the incomes of 125,000 farmers with 200,000 farmers covered with disaster risk protections by 2027.
Financial Inclusion: Financially include at least 7 million individuals and provide 1 million small businesses with access to financing by 2027.
Digital Access: Provide digital access to over 4 million people by 2027.
Gender Equity: Expand financial inclusion, digital access, and business services to 2 million women to promote their economic empowerment by 2027.
Education and Training: Provide education and training for 75,000 individuals across the region to directly prepare them for employment by 2027.
Access to Capital: Construct a $75 million debt fund to provide loans to small- and medium-sized businesses, with a primary focus on women-owned businesses, by 2027.
Infrastructure: Facilitate at least $500 million in infrastructure deals by 2027.
NEW COMMITMENTS
To date, the Partnership for Central America includes 75+ companies and organizations that have made commitments to support inclusive economic growth in the region. These entities represent the financial services, textiles and apparel, agriculture, technology and telecommunications, and nonprofits sectors.
The following companies and organizations announced major new commitments today, joining 40 companies that have already invested since the launch of the Call to Action in May 2021: new commitments to mobilize investment and expand their engagement in the region.
Digital Access
Millicom: Millicom has committed to invest an additional $350 million by 2025 to expand and maintain its mobile and broadband networks in Guatemala, Honduras, and El Salvador, adding to its initial $700 million commitment for 2023 and 2024. In addition, Millicom commits to train 10,000 women in these three countries through its Conectadas program focusing on the opportunities of technology and the internet. The program offers the possibility to become internet users and raises awareness about the creative and safe use of technology. More than 690,000 women (23% of these in Honduras, Guatemala and El Salvador) have been trained since 2017.
Workforce Development
Chegg: Chegg, an online-learning platform providing support to students who either cannot access the formal education system or have limited opportunity to benefit from such a structure, has committed to certifying 100,000 young adult learners with its online learning platform and technical skilling certification programs in Honduras by 2030, with a particular focus on underserved women. Additionally, Chegg and the Partnership for Central America will collaborate on bringing academic support and language learning tools to over 10,000 learners annually looking to upskill and access jobs in the modern digital economy.
Financial Inclusion
MiCROWD: MiCROWD offers microloans to female entrepreneurs in 6 Latin American countries including Guatemala, Mexico, Nicaragua, Costa Rica, Peru and Uruguay. Microwd has committed to issuing $20 million in debt to continue expansion in El Salvador and Honduras and reach 10,000 additional female entrepreneurs in Northern Central America by 2024, paving the path to impact 1 million people by 2030.
Viamericas: Viamericas is a U.S. company offering international money transfers from the United States to 80 countries for cash payouts or direct deposits to bank accounts. has committed to invest $45 million in the construction of a vertically integrated textile manufacturing facility in Guatemala to supply fabric for garment manufacturers in Central America, which is expected to directly employ 400 people.
Root Capital: Root Capital has committed to lending an additional $1.4 million to small businesses in Guatemala in partnership with USAID as part of the Guatemala Entrepreneurship Development and Innovation (GEDI) Initiative, which will help these businesses grow and access capital. In partnership with USAID, Root Capital has also committed to channel a minimum of $80 million in loans to agricultural small and medium-sized enterprises with high-growth potential in Honduras.
Manufacturing/Apparel
Protela-Colombia: Protela-Colombia has committed to invest $45 million in the construction of a vertically integrated textile manufacturing facility in Guatemala to supply fabric for garment manufacturers in Central America, which is expected to directly employ 400 people.
Columbia Sportswear Company (CSC): Columbia Sportswear Company (CSC), a leading innovator in active outdoor apparel, footwear, accessories, and equipment, intends to grow its partnerships with manufacturers in Central America in the next several years. CSC currently has manufacturing partners in El Salvador and Guatemala and, as part of its strategy to diversify its supply chain, plans to expand into Honduras. CSC has committed to purchase up to $200 million in products, which will create more than 6,900 jobs in the region over the next five years, in an industry where these jobs are primarily held by women.
Target: Target has committed to spending a total of $2.5 billion in the region among the countries of El Salvador, Guatemala, and Honduras over 10 years. They anticipate deepening relationships with vendors who have a presence in all three countries in the region. Target has almost 2000 stores in the United States and 51 facilities in their distribution network supporting those stores and digital channels.
How to Respond to the Call
The Call to Action is a CAF component facilitated through a public-private partnership between the State Department and the independent organization the Partnership for Central America, in close coordination with USAID. The Call to Action’s six focus areas are intended to support long-term development of the region, including: promoting a reform agenda; digital and financial inclusion; food security and climate-smart agriculture; climate adaptation and clean energy; education and workforce development; and public health access; strengthening democratic governance, combatting corruption, and improving security. The Biden-Harris Administration looks forward to increased collaboration with private companies from around the world to build upon this Call to Action in the months and years to come. More information can be found in the initial Fact Sheet announcing the Call to Action on May 27. The Partnership can be contacted at membership@centampartnership.org.
