DINAMICA II Initiative supports innovation and business development in El Salvador

Article originally published on CABEI's website on 12/12/2024. LACIF contributes to the DINAMICA II Initiative through an investment grant and technical assistance.

In an effort to strengthen the Salvadoran entrepreneurial ecosystem through the DINÁMICA II Initiative of the Central American Bank for Economic Integration (CABEI), the Government of Germany, through KfW and the European Union, a Non-Refundable Technical Assistance agreement was subscribed in favor of the Innovation Hub, Sandbox. The purpose of this agreement is to develop the capabilities of the Sandbox team through the adoption of new methodologies and innovative work frameworks. 

The technical assistance will make it possible to implement programs that foster business growth, promoting innovation, collaboration, and sustainable development among Salvadoran entrepreneurs. This strategic strengthening seeks to have a direct impact on the execution of key initiatives for the country's development. 

As part of this support, an open innovation pilot program will be implemented in which the selected companies will identify and define the specific challenges facing their operations. The purpose of the program is to link these companies with innovative entrepreneurs, who will present proposed solutions to the challenges posed.

With the implementation of this project, Sandbox fosters the training of its collaborators who transform communities and generate positive impact in entrepreneurship or startups. 

The DINAMICA II Initiative aims to promote entrepreneurial and private sector development to generate jobs and income and, therefore, contribute to economic development and poverty reduction in Central America and the Dominican Republic. In this sense, this collaboration with Sandbox represents a significant step towards the consolidation of an environment conducive to entrepreneurship and the generation of innovative solutions that respond to current challenges. 

This agreement with Sandbox brings to 11 the number of Business Development Centers (CDE) in El Salvador that are receiving Non-Refundable Technical Assistance for their strengthening, within the framework of the DINÁMICA II Initiative. To date, more than 103 micro and small enterprises in El Salvador have been strengthened with nonreimbursable Small Grants funds, and approximately US$2 million has been committed to support business development centers, entrepreneurship, and MSMEs through technical assistance.