Support for competitiveness of MSMEs in Junín, Peru

(Huancayo, December 10, 2009).- CAF and the Junín Regional Government today signed an agreement to execute the project "Supplier Development in the Junín Region" with the objective of increasing the competitiveness of micro and small enterprises (MSMEs) in the region so that they can participate in the market as suppliers to supermarket chains.

The agreement was signed by CAF deputy representative Ricardo Campins, and the president of Junín Regional Government, Vladimiro Huaroc Portocarrero, in the Sessions Room of the regional government.

Campins said the project would directly benefit 400 families in the first stage by identifying, selecting and training 50 MSMEs from the area in good practices in manufacturing, sanitation and health in order to obtain the certification required for supplying retail supermarkets.

With this project promoted by the Competitive Support Program (PAC), CAF aims to develop chains of local producers as a way of contributing to the development of the region by bringing the sales of MSMEs into the formal sector, and generating new direct and indirect jobs, Campins added.

"Competitiveness is fundamental for achieving equity, stability and growth in the region. Increasing the competitiveness of less favored sectors by providing them with tools means they can benefit from economic expansion and generate wealth, which contributes to combating poverty and unemployment. As a result, we are promoting this type of initiative which provides technical and financial assistance for the joint work of governments, business owners and academics, in an effort to stimulate competitive activities in the region, increase rates of economic growth and improve the quality of life of the inhabitants," the CAF executive added.

Junín President Portocarrero said the agreements with CAF were the first signed with a multilateral entity, and that execution of the project would increase the number of organized producers in the productive chains and MSMEs of the region, improve their business skills, and prepare them to become future suppliers of the Plaza Vea supermarket chain.

The Junín government will invite MSMEs in the area of processed foods and agricultural products to participate in the project, which will be executed by the alliance with the NGO Pro Bienestar y Desarrollo (PROBIDE) and Supermercados Peruanos S.A. which opened its Plaza Vea store in 2008, becoming the pioneering company in investing in Junín, the regional chief executive added.

"Junín offers a variety of export products. Here we have the best native potatoes, maca, cacao, vegetables, citrus fruit, dairy products and smallstock animals; with all this and thanks to the "Productive Chains of Economic Importance" project, which the regional government has been executing, 24 organizations have been brought into the formal sector and 15 collective brands and 18 sanitary registrations submitted on August 30 in the city of Concepción," he said.

Also during its visit, the CAF mission supervised the progress of the works of the Huancayo-Huanvelica Train Project (known as "Tren Macho") which the multilateral development bank is financing and which is planned to begin operations in the first half of 2010.