Santo Domingo, Dominican Republic
[Remarks as Prepared]
ADMINISTRATOR SAMANTHA POWER: Good afternoon. ¡Buenos días! It is great to be back, not only in the Dominican Republic, but in this very room where we, three years ago, talked about the importance of the U.S.- Dominican Republic relationship – importance that has only grown over these last three years, bonds between us that we have already strengthened. And so, it is a personal privilege for me to be back. I want to extend a special thanks to President [Luis] Abinader, who has been a tremendous partner to USAID, to the Biden Administration, to the American people, and I want to congratulate you, Mr. President, on your coming inauguration for a second term. Let me also thank Foreign Minister [Roberto] Álvarez, with whom we have really, really close ties, as we seek to strengthen, again, the ties between our two countries, but also secure regional prosperity and stability and democracy.
Nisha [Biswal] is a tremendous leader at the Development Finance Corporation, a veteran of USAID from a long time ago, as well as the U.S. Chamber of Commerce. But, Nisha really appreciate your work to ensure that DFC focuses on the development aspect of finance, specifically financing more projects here in the Dominican Republic, along the lines of those that you have described, and along the lines of those we know and lie ahead. Banreservas President Samuel Pereyra, so good to have you with us. So good not only to have this partnership cemented, but to think through what more we can do to facilitate access to capital for people who still really struggle to be able to get that break, that foot in the door.
And, the President and I were just whispering about just actually how reliable these borrowers are and their rates of repayment and what an important source of economic growth and vitality in this country these individuals constitute. This is a foot in the door that we are helping broker together, but it seems like we can even expand our ambition further, given again, what assets they are to the Dominican Republic's future.
The President and I and his team have just had a really productive set of conversations about what more we can do together. The Dominican Republic is experiencing a really quite remarkable economic growth, and is on an impressive trajectory. And you know what we want to hear as the United States government, as the Biden Administration, is what more we can do to be catalytic and to support the efforts that are being made, particularly in disadvantaged communities to make sure that economic growth is inclusive economic growth that touches all the people of this country.
And in that spirit, I will say that it was almost two years ago, back in September of 2022, that President Abinader and I met and he came, as he does, with a very specific ask on something that he was very, very focused on himself. And, that was what more could the friends of the Dominican Republic, like the United States, do to work with the government here in the Dominican Republic to help the people writ large obtain the full benefits of the economic upswing that the Dominican Republic was experiencing. And his emphasis, very clearly, was on, what can you USAID, you DFC, you the United States government, the American people, do in particular, to focus on women, and specifically the area of the southwest where growth had been slower and where opportunities had been historically harder to come by.
And, we know that there are many people of this great country who have big dreams for themselves, and for their families, and those dreams can – are very, very tangible, and I'm sure will resonate with people watching. You know, how can someone scale a farming opportunity, so as to help feed communities and actually produce commodities that can be sold regionally or further beyond? How can someone open a new shop to boost economic activity in their specific neighborhood? How can someone develop a new product or service that solves a problem that has been holding their school, their neighborhood, their community, their country back?
These innovators are out there. These ideas are there. But too often, these entrepreneurs – of whom there are so many – and especially women entrepreneurs, just can't get the break. They can't get the capital, they can't get the resources, they can't get the training that they might need to grow their business, often because they lack credit history, or maybe they lack the collateral that is necessary for conventional loans.
And that is why, in the wake of President Abinader’s request, USAID facilitated a $42 million loan portfolio guaranty that comes from the U.S. Development Finance Corporation to bring financing options to small businesses in the Southwest Corridor with a specific focus on women owned businesses, as you heard from Nisha.
This loan portfolio guaranty is going to reduce some of the risk associated with extending finance to these businesses. This will help borrowers who would not otherwise be able to secure the credit that they need. Lending is also going to support climate adaptation and clean energy, helping small businesses reduce the chance that floods, droughts, or the increasing propensity of storms might erase the hard earned gains that they are making. All told, again, as you've heard, this guaranty will catalyze up to $84 million in local currency lending through Banreservas.
This partnership is just an example of a way that when it comes to working with the private sector, we, at USAID, are now doing business differently than we have over many decades. A core focus of the U.S. government, of the Biden Administration, and including USAID, is becoming stronger partners to the private sector in unlocking potential, a potential that we know is there. And, here, just to give you one statistic: from 2021, when the Biden Administration started, to 2023, thanks to an Agency-wide push at USAID, private sector partner contributions to USAID activities have jumped more than 60 percent.
Today's launch is another great example of how we are working to apply the private sector's unique edge to global development challenges. It's also an example of the Development Finance Corporation's growing ambition in this area of work.
To complement this DFC investment, USAID is also going to provide $2.5 million through what's called our Gender Equity and Equality Action Fund, the so-called GEEA Fund, to work with civil society organizations and women-led businesses to provide women with the financial and digital skills and the business networks that they need to fully capitalize on their loans, maximize their earnings, and achieve the economic independence that they seek. We know that when these entrepreneurs actually get the resources they need to pursue their goals, to realize the visions that they already have, they can't be stopped.
And today, I met with one example of this, Yokasta Valenzuela, who's a young entrepreneur who I had a chance to talk with today in Boca Chica.
Yokasta grew up in a neighborhood where many, many people were struggling to make ends meet. In her case, she found purpose and fulfillment in dance. She won award after award, and, eventually, started choreographing dances for local dance groups. She saw how dance and music could cultivate community, but also saw that how some of the most talented dancers had to somehow mobilize significant resources to be able to pursue their vision. Often that required traveling long distances to get the more refined training that they needed. And, she also saw how dance could cultivate a sense of community.
So, again, instead of investing just in mobilizing resources so that people could come to the capital to, again, get those exposures and that training that they sought, she decided to start a dance school right there in her own backyard. A safe space for kids to come and learn, to move their bodies, and to build healthy connections with one another.
As word got out, more and more kids came to dance in their own backyard, and Yokasta realized she would turn her school into something far bigger – if she could only get the resources and the training she needed to turn her dance skills into entrepreneurship.
Through USAID, she participated in training on small business and on leadership, and she was connected with the local bank who provided her with a $2,500 no interest, interest-free loan, with which she has gone on to make her dream a reality.
What started as a neighborhood thing in her backyard is now a full blown dance academy with hundreds of enrolled students and a successful fundraising operation to cover fees for disadvantaged youth so that everyone who wants to can actually join this academy.
This announcement today by the DFC and the Dominican Republic is going to support the success of more entrepreneurs like Yokasta, whose work will continue to impact future generations of Dominicans.
USAID looks forward to deepening our work with the Dominican people and to strengthening our collaboration with President Abinader and his team. Mr. President, as you work to show the Dominican people that democracy delivers and that prosperity is for everyone.
Thank you so much. It's a privilege to be here. Thank you.