The Migrante Productivo Program seeks the productive investment of remittances from Jaliscans working out-of-country, as well as linking Jaliscan importers abroad with local companies.
In the first quarter of this year, Jalisco received more than $1,167,600 in remittances from migrant workers mostly working in the United States, which is 18% more than the same quarter of 2020, and double the foreign direct investment. Most of this income is sent to the workers’ families and used for everyday life expenses. The Migrante Productivo Program seeks the investment of these remittances into new or existing Jalisco businesses, as well as linking importers of Jaliscan goods living abroad with local companies.
The Government of Jalisco, through the Ministry of Economic Development (SEDECO,) and the Jalisco Business Development Fund (FOJAL,) presented Jalisco Migrante Productivo, so that Jalisco migrants can become investors and detonate the economic development of their families and their conditions; as well as the search for business opportunities between Jalisco residents who live in Jalisco with those who live in the American Union.
With Jalisco Migrante Productivo, a part of the income from remittances to Jalisco can be translated into new entrepreneurships, or growth of already established local companies, to improve the economic conditions of migrant families.
“We analyze the issue of converting remittances into productive investment. There is a very important amount of money that flows to Jalisco through remittances, however that money generally does not remain beyond expenses, which are important due to the economic benefit, of course. But we consider that it could be much more important if it were invested in a project that will generate more income later,” shared the head of SEDECO, Ernesto Sánchez Proal.
For this, FOJAL will offer lending specially designed for them with preferential rates, as well as advice, both to Jalisco residents who live in the United States and their relatives in Mexico, to ensure that their investment is much more successful through the development of business skills.
They will lend from 50,000 to 3 million pesos at an interest rate of 8% in order to generate economic activity in the communities in which they are received, with particular interest to drive regional development outside the Guadalajara metropolitan area. The Program applies to companies in the sectors of shops, service, industry, and agribusiness. Qualification requires a 20% investment by the migrant worker or their family, and the FOJAL funds can be used for merchandise, raw materials, inventories, new machinery, remodeling, or adaptation of spaces.
“It is aimed both at relatives of people who have migrated and at migrants who are in the United States, and this is a work in two pillars; training is worked on and financing is worked on simultaneously. The training is aimed at both the migrant who is in the United States, who is sending their remittances and who eventually participates in an investment project and participates as an investor in it, and is also aimed at the family member, friend, or partner in Mexico who is receiving this remittance and becoming administrator or partner of this project,” explained Héctor Vélez, director of FOJAL.
As part of this strategy, the Ministry of Economic Development will also implement actions to detect foreign trade opportunities with the migrant community in the United States, so that companies with export potential in Jalisco can sell their products to Jalisco businessmen living in the North American country.
SEDECO and FOJAL made a first tour to the United States, to socialize with the migrant community about this program. Talks were given about business opportunities among Jalisco, so that migrants from Jalisco can act as importers and do business with other Jaliscans, allowing migrant families to live better thanks to the productive investment of their remittances.
“The training of our Jalisco citizens abroad includes the detection of these business opportunities that many of them already have. What we only do is help them to specify (these businesses,) and we bridge with the sender or receiver in Jalisco, who will most likely be their relative, to be able to take care of these businesses in an integral way, so that they have a permanence and a much greater life cycle than they could have if they did it individually,” added Claudia Villarruel, director of foreign trade at SEDECO.
For more information on the Migrante Productivo Program, visit their website:
http://fojal.jalisco.gob.mx/productos_financieros/fojal_migrantes.pdf