Sustainable financing for the economic development of rural enterprises in Honduras

PILARH OPDF (Proyectos e Iniciativas Locales para el Autodesarrollo Regional de Honduras – Organización Privada de Desarrollo Financiero) in Honduras is one of the microfinance institutions that received technical and financial support from the programme to launch a pilot product development project. PILARH is a leading organisation in the economic and social development of rural areas in Honduras. It offers a diverse range of services, including financing, savings accounts, microinsurance, and remittances, as well as non-financial services such as technical assistance, training, and financial education.

PILARH OPDF key figures (as of December 2020)

With the support of the programme, the MFI has implemented the “Rural Family Enterprise” project, which incorporates a holistic approach to supporting rural producers in the Lempira and Copán regions, considering the well-being of the family as a development axis. This project aims to provide financing to families to enable them to reinvest in their economic activities and increase their family income level. A financing that meets the basic needs of families, in addition to generating employment.

Funding includes an analysis of the farm, including the economic activities (agricultural and non-agricultural) carried out by family members and how they relate to the markets in which they operate. This approach supports the capitalisation of farms, encourages productive diversification and the use of new technologies. It is combined with training on good environmental practices and financial education.

In particular, the project contributes to improving the economy of rural families affected by the coffee crisis of 2017 and 2018, and to promote the overall development of communities.

Results as of June 2021

The scope of the project in terms of economic activities was mainly focused on coffee production and then expanded to other staple grains, large and small livestock and sugarcane cultivation, which are essential for farmer production.

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