Paraguay’s extensive economic and social transformation over the past decade has provided a major boost to the country’s infrastructure and industry sectors.
Still, only a relatively small portion of its abundant available energy is used for internal consumption, while firewood and biomass residues remain the predominant energy inputs, supplied largely by unsustainable production systems.
With growth and expansion of electricity consumption in Paraguay presently a key political objective, the main barrier faced by micro, small and medium enterprises (MSMEs) is their ability to access credit for equipment replacement of equipment and reconversion of their industrial processes. Lack of collateral, poor business planning, and overly burdensome information and documentation requirements are significant factors influencing MSMEs access to finance. There is also a huge informal sector in Paraguay.
Drawing from the IDB experience in supporting the Development Finance Agency (AFD) of Paraguay to promote a transition towards a green and sustainable economy, this publication reflects on the design of a sustainable green financial structuring strategy for the mitigation of climate change as well as for the reduction of pressure on the country's natural resources. It explores initiatives in specific strategic sectors that can also be used and/or replicated by the National Development Banks and Financial Institutions of the Latin American region. Read the full publication (Spanish)
here
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