Colombia expresses interest in repeating Spain’s successful experiences

(Bogota, March 14, 2006).- Members of the Spanish Council of Chambers of Commerce met with representatives of various national public and private institutions, the Spanish Embassy and the CAF representation in Colombia, with a view to exploring possibilities of joint projects to develop Colombian small- and medium-sized enterprises (SMEs).

The Council is an official organization that groups and represents private enterprise in Spain and has a broad portfolio of support programs for SMEs. Through an agreement with the Spanish Cooperation Agency, the Council will promote the SME sector in Colombia.

During the meeting, programs were presented along the lines of creating and strengthening SMEs, administrative simplification for creation of companies, business support programs for women, support for internationalization, and the SME export effort, among others.

"We met with the institutions that we think best represent the SME promotion sector, including Analdex, Bancoldex, Proexport, Acopi, Asobancaria, Anif, National Guarantee Fund, Ministry of Commerce, Industry and Tourism, together with the Spanish Embassy. The programs presented by the Council aroused considerable interest in the possibility of repeating many of the experiences," said Manuel Malaret, CAF director of SMEs and Microfinance.

Malaret said that several of the programs presented were already being applied successfully in Colombia and there was great interest in knowing more about other activities. "Two programs generated most interest: the initiation plan for export promotion, which is a plan to support the SME export effort; and the local antenna program, a new service that supplies small units to remote areas to provide companies with information on the market, product processes, and on development itself, along with advice on management improvement."

Currently CAF, through its SME and microfinance department, is promoting a series of projects to facilitate access to capital by sectors with limitations in this area, including SMEs and the rural, education and health sectors.

In Colombia strategic alliances to finance SMEs have been formed with agencies such as the National Guarantee Fund, which signed a US$10-million loan refinancing agreement with CAF to benefit about 5,800 enterprises.

Lastly, in an alliance with the Wharton Business School of the University of Pennsylvania and the University of the Andes, the Global Consulting Practicum (GCP) is promoting the internationalization of SMEs by preparing consulting works.

In the long term, new initiatives are planned to support the education and rural sectors. "Several projects are in the design stage. We want to start a risk-capital project for Colombian SMEs and offer equity facilities, which would initially benefit about 20 enterprises. We have also considered implementing a mechanism to finance small farmers. and students in technical and technological careers," Malaret said.