SEED - Equitable Finance

OVERVIEW 

The Equitable Finance Activity (EF) improves the supply and demand of financial services as a means to  mobilize funds needed for licit and productive investments in rural communities. On the supply side, EF  partners with the full range of Colombian financial services providers to design and deploy conventional  and digital financial services that cater to the specific requirements of underserved communities. On the  demand side, EF improves the financial and digital capabilities of individuals and micro, small, and medium sized enterprises (MSMEs) to drive financial product uptake and customer performance, and to increase  household income and assets. EF is implemented in 193 municipalities in five economic corridors: 1) Bajo  Cauca and Nordeste Antioqueño; 2) Catatumbo; 3) Cauca and Nariño; 4) Caquetá and Putumayo; and 5)  Meta and Guaviare. The activity runs from October 2022 to October 2027.


GOALS 

INCREASE FINANCIAL CAPACITY 

EF improves the financial literacy and capacity of producers, cooperatives, students and educators, women,  rural residents, indigenous and Afro-Colombian communities, and MSMEs. Strengthened financial capacity  enables these actors to better understand and access the different financial services available to them. 

INCREASE FINANCIAL SERVICE PROVISION 

EF increases the supply of fit-for-purpose financial services in target municipalities. It does this by enabling  financial service providers, financial technology firms, producer organizations, and other private sector  actors to increase their presence, capacity, and ability to provide digital and traditional financial services. 

IMPROVE FINANCIAL INCLUSION 

EF promotes access to, and use of, data among governmental and private financial intermediaries to drive  evidence-based policy and improve the development of financial channels, products, and services for target  communities.  

MOBILIZE LONG-TERM FINANCIAL CAPITAL 

EF improves the flow of funds into prioritized geographies by providing alternative finance instruments  needed to access and use long-term capital from financial institutions, development banks, and other public  and private investors. 

ANTICIPATED RESULTS 

● Increase MSMEs’ financial capacity; 

● Enhance regulatory framework for financial inclusion; 

● Improve collection and use of financial consumer data; 

● Increase financial capacity among community members; 

● Improve the provision of digital services by financial providers; 

● Enhance the provision of financial services in target communities; and 

● Mobilize long-term financial capital toward USAID’s priority sectors.