Women's EconomicEmpowerment
through Financial Inclusion
in Guatemala(GuateCrece Project Case)https://www.google.com/maps

Akihiro Tsukamoto,Engaged as the Advisor for Financial Inclusion Promotion
with Immigrant Remittance in Guatemala,for JICA (Japan Internacional Cooperation Agency)

Contents
1． Overview of the GuateCrece Project activities
in Guatemala for local women’s empowerment
through the financial inclusion
2．Changes achieved in terms of women’s
economic empowerment

1． Overview of the Project activities
in Guatemala for local women’s
empowerment through the financialinclusionCurrent situation in Guatemala (1)Increase of family remittance• In rural areas of Guatemala, economic opportunities are limited, especially for women.
• Many Guatemalans are trying to get to the USA in search of better economic opportunities.
• Those who live and work in USA send the international remittance to the family living inGuatemala. The total amount of such family remittance fund represents about 20% of GDP.

People trying to get to USA
Source：https://www.youtube.com/watch?v=z2sjeXoQnQo

Total amount of family remittance funds
Source: based on the information of Central Bank of Guatemala

Current situation in Guatemala (2)Use of International Remittance Funds
Most of family
remittance fundhave been “not”
spent forinvestment ineconomic activities
but for daily
consumption.

Use of family remittance funds in recipient households
Source: based on ENEI-1-2021 of the National Statistics Institute (INE).

Our challenge
How can we increase economic opportunities in Guatemala?
GuateCrece Project is carried out by the National Institute of Cooperatives(INCAOP) of Guatemalan government, with technical assistance of Japan
International Agency (JICA).
Guatemala Crece con(Guatemala growing with)• Remesa familiar (eficiente use of familyremittance)• Cultura de ahorro (savings culture, and)• Emprendimiento (entrepreneurship)Framework of the
Project activities
Participating
credit unions

1st activity: Improve credit
unions’ financial andnonfinancial services

Credit unions’members

GuateCrece Project

2nd activity: Promote
entrepreneurship andeconomic activities of credit
unions’ members

One of participating credit
unions in Guatemala

Promote financial andeconomic activities of themembers, thanks to credits andfinancial education to beprovided by credit unions.

More funds can be collected inparticipating credit unions,because of the members’
earnings to be increased.

Project Concept (1)Effective use of international remittancefunds to promote businesses in Guatemala

Guatemalan women,developing their business,by using their financial
resources

Saving the money
received by remittance,
for its effective use in
the future

Credit unions’ remittance receiving
services, financial education, andsaving account services

Internationalremittance fromhusbands in foreigncountries

Project Concept (2)Enhanced financing for local businesses with a view tosustainable local economic development

Credits provided for local
small enterprises with goodpotentials by credit unions
A lot of savings atCredit Unions

Revitalize the local economy
and create economic
opportunities in Guatemala

Activities of the Project for improving nonfinancial
services of participating cooperatives (credit unions)
Participating cooperatives (credit unions) have
improved their nonfinancial services, starting
the provision of the following services• Financial education• Training for promoting entrepreneurship(vocational training, training on how toprepare business plan, etc.)

New Vegetable Cultivation

Financial education

Vocational training to promote women’s entrepreneurship

Use of Information Technology forpromoting women’s businesses

Digital marketing trainings for young people, mainly women,
participating in “Puentes” project organized by United States
Agency for International Development (USAID) and World Vision

Use of SNS for
marketing activities

Coverage of the application of the GuateCrece Project
GuateCrece Project’s
concept and methods havealready been applied byapproximately 40
cooperatives, benefiting
almost 10,000 people
directly or indirectly in theyear of 2023.
(9,694 associates in total)
eyend augares en ue se localizan las
cooperativas aplicando el odelo
GuateCreceonas principales en ue seaplica el odelo GuateCrece2. Changes achieved in terms ofwomen’s economic empowerment

Women entrepreneurship
Trainings

Women who have started
new business

Several women have developed their own business, by utilizing theknowledge learned from the training courses in which they participated.

Increase in monthly income of participating cooperatives’(credit unions’) members•

Differenceof 2,175
GTQ•The GuateCrece Model has resulted in an
increase of 2,175 GTQ per cooperative member,in terms of monthly income. This increase has
been caused by the newly developed economic
activities of the participants.
The impact is larger for women than for men.
(Effect size for men = 0.192, Effect size forwomen = 0.212)

Changes in monthly income of cooperatives’ members
End of year 2022

NonparticipantsParticipants

End of year 2023

The positive impact is the largest inyoung women group.
Age & Gender

Women 20s-30s
Women 40s-50s
Men 20s-30s
Men 40s-50s

Participación enel Modelo
GuateCrecenParticipants
Non-Participantes
Participants
Non-Participantes
Participants
Non-Participantes
Participants
Non-Participantes

75434348623428
26% who have
% who haveincreased
increasedsavings in theincome by moreaccount by morethan 20%than 20%
52.0%
48.0%
48.0%
25.6%
20.9%
20.9%
14.0%
46.5%
51.2%
31.6%
39.5%
47.4%
30.6%
50.0%
50.0%
23.5%
20.6%
35.3%
17.9%
57.1%
53.6%
38.5%
26.9%
34.6%

% who havedeveloped new
economic
activityA woman’s successful case
• She had only completed the basiceducation.
• She receives international family
remittance from her husband, at the
local credit union, which is locatednear by her house.
• By using the fund provided by herhusband and credit granted by thecredit union, she has been able todevelop and expand her business ongarment, taking in advantage ofhaving participated in vocational
training about it.

Theory of change (Women empowerment)
Achieve economic empowerment
Earn money by starting themicrobusiness• Credit for expanding
the business

Use their money strategically• Financial education• Trainings onentrepreneurship

Have their own money throughdeposits or remittances• Remittancereceipt service• Savings

Conclusion (1)Importance of Credit Unions for local development• Credit unions can be important instrument for women’s economic empowerment.
Because credit unions are more familiar for local people than banks.
• Women members evaluate positively financial and nonfinancial services of credit
unions, in terms of gender equality.
points evaluated by women menbers about the credit union
012345675101520253035

Conclusion (2)Utilization of international experience
The Project’s positive effects have been increased, thanks to;• Collaboration with “Puentes” Project organized by USAID and World Vision, and• Applying lessons learned from experiences developed in Honduras

Trainings on how to form a cooperative,
for young people, mainly women,
participating in “Puentes” project
organized by United States Agency forInternational Development (USAID) andWorld Vision

Financial education realized inHonduras as an activity of theProject named as “ACTIVO” by
the Japanese technical assistanceThank you!