Sector Study N°4 - Main effects of COVID-19 and measures to address the crisis in the Central American and Caribbean microfinance sector

Between 2018 and 2021, REDCAMIF published a series of studies on microfinance in Central America and the Caribbean to highlight the advances and challenges of the inclusive finance sector in the region. This document reflects the joint effort that REDCAMIF and ADA have made over the past 10 years to promote the financial and social inclusion of micro and small entrepreneurs. This study is the first in the series.

This study is an effort by the Central American and Caribbean Microfinance Network (REDCAMIF) to analyse the effects of the COVID-19 pandemic on the microfinance sector in Central America and the Dominican Republic, as well as the measures implemented by different stakeholders to face the crisis.

The study uses a qualitative methodology that contributes to an in-depth understanding of the effects that this health and economic crisis has had on microfinance institutions, the difficulties the sector is facing and the measures they are adopting in the face of an unforeseen scenario. It is aimed at different actors interested in the strengthening and continuity of microfinance in the region: microfinance institutions, microfinance networks, funders and investors, and cooperation agencies to design programmes, projects and services, using information from this sector analysis.