The Challenge

The Dominican Republic’s strategic location and robust Free Trade Zone (FTZ) network make it an ideal hub for regional commerce.  Yet many local small businesses have struggled to fully benefit from the economic advantage. Barriers such as meeting international standards, accessing finance, navigating customs, and building technical capacity have limited their ability to seize nearshoring opportunities and integrate into global value chains.

 

What We Did

The Alliance worked with public and private sector partners to bridge these gaps by:

  • Connecting SMEs to buyers: Three matchmaking events in Santo Domingo and Santiago brought together 243 companies for 753 business meetings, resulting in the first local SME securing a purchase order from a FTZ company.
  • Strengthening SME capacity: 12 SMEs completed a mentorship programme, ‘Compañeros de Comercio’, aimed at boosting their export readiness. Four SMEs received tailored technical assistance to meet free trade zone supplier standards, and one SME secured USD 10,000 to invest in new machinery and boost production.
  • Facilitating trade compliance: 22 SMEs acquired Authorised Economic Operator (AEO) certification, enabling faster customs clearance and real cost savings.
  • Mobilising the private sector: Businesses contributed over USD 126,000 to co-fund project activities, with engagement from 66 MSMEs, 24 large firms, and 18 associations and chambers of commerce.

 

The Impacts 

  • Customs clearance times for certified SMEs dropped from 104 hours to 72 hours.
  • All 22 certified SMEs reported lower costs and fewer inspections.
  • Matchmaking events opened new markets across multiple sectors, while public and private institutions collaborated more closely than ever before on supplier development.

 

Early Closure

In January 2025, a Stop Work Order from the U.S. Department of State led to the withdrawal of USAID funding, closing the project earlier than planned. While this limited scale-up, the groundwork is in place: stronger SME capacities, proven supplier development approaches, and a successful model of public-private cooperation that can continue to strengthen the country’s role in regional supply chains.