Project description / objective
More competitive, resilient, and inclusive market systems that sustainably increase economic opportunities through:
- increasing business sales and jobs for Hondurans, including vulnerable populations
- reducing migration incentives while building the foundation for broad-based, long-term economic growth.
Market systems focus
Value-added agriculture
Expand the market share of Honduran agricultural and food products through value-addition and help farmers transition to more sustainable production models that generate better incomes and more jobs on-farm and off-farm, focusing on coffee, dairy, diverse fruits, and vegetables.
Tourism and creative industries
Increase tourism and visitor consumption to generate formal and higher-paying jobs primarily for women working in Honduras' hospitality, transport, and other tourism-related industries. Focusing on the sun, beach, nature, adventure, and cultural and MICE (meetings, incentives, conferences and exhibitions) tourism segments.
Entrepreneurship
Build an ecosystem of services that enable micro, small, and growing enterprises to generate better jobs and create quality goods and services that benefit all sectors of Honduran society, focusing on manufacturing, construction, agriculture, commerce, and tourism.
Digital economy
Accompany Honduran businesses and market actors in transforming their operations by adopting and integrating digital technologies into their core business models, focusing on digitalising commerce, government, and support services for the agriculture and tourism sectors.
Financial services
Deepen financial access to better serve underbanked populations with access to capital needed to grow and to manage risk better to recover from shocks and disruptions, focusing on access to finance for agriculture, renewable energy, commerce, and women-led MSMEs.
Business enabling environment
Enable the formalisation of Honduran enterprises and simplify the burdensome regulation and administrative processes that reduce enterprise productivity and limit innovation. Focusing on municipal tax and fiscal policies, registries, permitting and licensing, sanitary and phytosanitary standards, and customs processes.
Labour intermediation
Support workers to obtain decent work while assisting enterprises in developing a more productive workforce to compete and grow, with a focus on temporary work abroad and digital jobs for remote work.
Programme interventions
Value-added agriculture
TMS partners with Honduran agroindustry to:
- diversify and add value to agricultural and food products
- establish commercial relationships in value-added markets
- expand distribution channels for food products
- include small producers in firm supply chains
- help farmers transition to more sustainable production systems
Tourism and creative industries
TMS partners with Honduran tourism organisations to:
- enhance reputation to motivate Honduran visitors
- develop tourism attractions for niche markets
- provide effective governance to manage tourism destinations
- increase destination connectivity with principal markets
- professionalise services related to quality tourism experiences
Entrepreneurship
TMS partners with Honduran business service providers to:
- develop sustainable services that meet the needs of enterprises
- integrate and coordinate services as part of the ecosystem
- reinforce an entrepreneurial culture and norms in society
Digital economy
TMS partners with technology companies and regulators to:
- support MSMEs to sell products and services online (e-commerce)
- expand the use of digital finance to support financial inclusion
- reform digital regulation to enable digital financial services
Financial services
TMS partners with local financial intermediaries to:
- develop new services to reach underserved markets
- establish alliances with transaction assistance providers
- strengthen investment promotion to attract investors
- develop community-based banks for financial inclusion
Business enabling environment
TMS partners with the Honduran government and policy actors to:
- facilitate more inclusive stakeholder engagement in the policy process
- generate evidence-based formulation and assessment of policies
- simplify government administrative processes
Labour intermediation
TMS partners with employment agencies and vocational institutes to:
- strengthen labour intermediation services
- develop competency-based skills training offers
Notable results (systemic change, poverty impact)
Value-added agriculture
- TMS partnered with 18 anchor firms and supported 1,038 food-systems enterprises to connect 12,102 farmers to formal supply chains across high-value segments: frozen roots, fresh-cut vegetables, artisanal dairy, specialty coffee, premium cocoa, and aromatics
- Linkages generated $360 million in annual on-farm and off-farm sales - a 45% increase over baseline
- The activity mobilised $113 million in agricultural financing and expanded adoption of more than 21 climate-resilient technologies, supporting bio-inputs and environmentally sustainable practices across 32,987 hectares
- 11,392 farmers and 12,817 farm workers reported income increases, with annual earnings rising by an average of $2,779 through new or improved employment
- 438 youth and 4,773 women integrated into these supply chains
Tourism
- Honduras saw a 17% increase in visitation from 2019 to 2023, with 8% of that growth (174,646 visitors) traceable to TMS interventions, creating 10,013 jobs across the tourism sector
- TMS secured more than 195 strategic media placements generating 449 million impressions and $7.5 million in earned media value, including features in Condé Nast, the New York Times, and the Washington Post
- Led efforts to attract new low-cost carriers, establishing seven airline connections to key markets
- Developed services that trained 7,763 individuals and helped 2,213 tourism businesses adopt digital marketing and reputation management practices
- Developed more than 15 innovative tourism experiences and supported a decentralised, public-private governance model through 10 Destination Management Organisations
Entrepreneurship
- TMS strengthened a network of nine business service providers that delivered tailored support to 5,503 MSMEs
- These firms achieved 56% average sales growth over baseline, increased owner earnings by 84%, and generated 3,523 new jobs
- Five of the nine BSPs reached "good" sustainability ratings on the Argidius SCALE assessment
- Beyond direct service delivery, TMS facilitated the entry of 11 new players into the Honduran entrepreneurial ecosystem
- Advanced systemic reforms, including passage of fintech regulation with the Central Bank and establishment of the Fintech Association of Honduras
- An e-commerce initiative enabled 10,743 individuals and 4,162 MSMEs to adopt digital marketing and e-commerce practices, generating more than $50 million in new online sales
Financial services
- TMS mobilised $147 million in loans through 46 financial institutions to more than 3,377 borrowers
- This included facilitating Lafise Bank's specialised agribusiness unit and launching Pyme Mujer, which extended $47 million in credit to the agricultural sector and women entrepreneurs with a U.S. DFC loan guarantee
- Strengthened 197 cajas rurales serving 4,432 members, including 2,521 women and 1,073 youth
- At the municipal level, TMS established an investment office in Comayagua and developed a regional master plan that attracted $26.7 million in new capital investments
Business enabling environment
- TMS supported 55 municipalities in standardising and modernising tax plans
- Enabled 15 municipalities to streamline and digitise construction permitting and business licensing, generating 3,539 indirect jobs through formalization and construction activity
- Helped 33 municipalities develop Local Economic Development agendas, strengthening the Association of Municipalities of Honduras (AMHON)
- At the national level, TMS worked with the Government of Honduras to design a National Food Control System with nine agencies, establishing a new food safety governance framework
- Implemented paperless customs at five offices, advised on regulations for more than 2,000 customs auxiliaries, and introduced a circular economy model with new recycling infrastructure in central-southern Honduras
Labour intermediation
- TMS quadrupled visa issuance to 25,950 since 2019, incorporating 15,042 new workers into formalised labour pathways where they earned an average of $12,029 over eight months - more than triple domestic earnings
- Recruited 281 employers across four countries, cut processing time from 24 to 9 days
- Established regulatory frameworks to protect workers' rights in partnership with the U.S. State Department, the Honduran Ministry of Labor, and the National Immigration Institute
- Private intermediaries expanded - now commercially connecting three times the volume of the public system
- Returned workers reinvested strongly: 61% directed funds to education and 19% launched businesses, bringing home approximately 58% of what they earned abroad
- This resulted in the creation of one additional domestic job for every three temporary workers placed
Impact on poverty
- TMS generated 73,232 jobs across 196 municipalities - 65% held by women or youth - with net additional earnings totalling more than $368 million
- These positions paid an average of $6,415 annually, providing a livable wage; locally generated jobs paid $1,742 or 57% more than equivalent local positions; including temporary work abroad, the wage premium reached 112%
- TMS leveraged $185 million in public and private capital against $15.2 million committed - a 1:12 ratio - while catalysing 350 partnerships across its network
- Honduran enterprises (80% micro and small) are the drivers of these economic opportunities, investing $35,428,638 of their capital in systems changes
- Among beneficiaries, intention to migrate dropped from 28% in 2020 to 5% in 2024; 84% reported having agency to improve their lives through these economic opportunities
[Updated May 2026 | Source: TMS Final Report (June 2025)]