Economic Inclusion Project Reaches New Milestone

New data released on Tuesday by WOCCU and the United States Agency for International Development (USAID) showed that after nearly two years into the Economic Inclusion Project, more than 70,000 people living in Peru and Ecuador have been provided better access to savings, credit services and entrepreneurship prospects.

The Economic Inclusion Project (EIC) began in June 2020 by WOCCU, with funding from USAID to give economic opportunities to the Venezuelan migrant and refugee population who fled the country to Peru and Ecuador in search of a better life.

World Vision, the humanitarian organization, estimated more than six million people have left Venezuela in recent years, due to ongoing violence, hyperinflation, and food and medicine shortages.

According to the data shared during a quarterly meeting on May 20, the EIP has been successful in generating opportunities for Venezuelan migrants and vulnerable local residents.

“We have found that without financial education and access to formal financial services for vulnerable populations, efforts to boost entrepreneurship, promote employability and prevent gender-based violence are not truly sustainable,” USAID Mission Director in Peru Jene Thomas said. “That is why, thanks to our 14 [financial institution] partners in Peru and Ecuador, we have helped 71,272 beneficiaries get access to savings and credit services and achieved, for the first time, in providing Venezuelan citizens with access to loans.”

According to a press release from WOCCU, 5,624 Venezuelan, Peruvian and Ecuadorian entrepreneurs have benefited from programs designed to consolidate their businesses in conjunction with EIP partners.

“For me it is a great satisfaction to finish paying my third loan and to be able to request another one for a fourth time, with a vision of a greater future than the one we had a year ago, showing that we can grow as companies, that we can be recognized as a stable business and, above all, to grow our credit history so that many more doors will open for us,” Deisy Arbelay, a Venezuelan entrepreneur and beneficiary of financial services provided by MF Prisma Credit Union, said.

The data found 65% of the EIP participants are women, many who are in vulnerable situations, and the project is developing strategies to prevent gender-based violence. In all, the EIP has trained more than 8,300 people through its financial education programs, according to a statement from WOCCU.

“To continue … I think that is the biggest challenge. To continue with this project that has definitely transformed the lives of so many people here in Lima, and I know it is happening the same in Ecuador,” Oscar Pérez, president of Unión Venezolana in Peru, said. “Continuing in a planned manner will allow more financial institutions to join what is already an unstoppable movement of institutions that believe that Venezuelan migration can have a positive impact on the host communities.”

The EIP is expected to continue through June 2023.