The Japan International Cooperation Agency (JICA) has signed a new loan agreement with the Caja Municipal de Ahorro y Crédito de Arequipa S.A. (CMA), the largest municipal savings and credit institution in the Republic of Peru. The deal was concluded on 5 December and is aimed at strengthening financial access for women who run micro and small enterprises across the country.

CMA, headquartered in Arequipa, Peru’s second-largest city, will receive 65 million USD through JICA’s private sector investment finance. The institution will allocate the full amount to lending programmes specifically designed for women-led businesses. JICA says the initiative will help address long-standing gaps in access to credit, which continue to hinder many women from expanding their operations.

Photographs from the signing ceremony and a site visit to a female entrepreneur funded by CMA were released by JICA following the announcement.

According to JICA, the Project for Support to Women-led Micro and Small Enterprises is expected to play a wider role in improving employment prospects and reducing income disparities among Peruvian women. CMA already operates training schemes aimed at strengthening the skills of women entrepreneurs, and JICA will work with the institution to advance this human-resource development.

The project contributes to several Sustainable Development Goals, including Goal 5 (Gender equality), Goal 8 (Decent work and economic growth) and Goal 17 (Partnerships for the goals). JICA also noted that the initiative aligns with the G7 2X Challenge: Financing for Women, an international effort focused on increasing funding that supports women’s economic empowerment through strengthened leadership, entrepreneurship and workforce participation.