Background

Paraguay is the size of California. But whereas that American state has 34 million people, Paraguay has around 5.5 million. Half of Paraguayans live on less than US$2 a day. It is a young population: 60% are under age 24. Contrary to what is occurring in the rest of the world, in Paraguay the proportion of people working and living in rural areas and working in agriculture is growing.

The conditions for expanding rural credit do not favor Paraguayan agricultural entrepreneurs. According to the World Bank, only 9.5% of the roads in the country are paved in comparison to 25% in the rest of Latin America. Together with the low population density, both have the effect of increasing the cost of rural credit in Paraguay. It is in this context that the FP directs its efforts to widen access to credit to those excluded from conventional finance, particularly rural entrepreneurs, as well as build capacity among young people to participate ethically and effectively in the world of business.