eco.Business Fund for SME Development in Latin America

Introduction

Latin America is characterised by richness in biodiversity and natural resources, which provide essential ecological services for the world. However, this natural abundance is threatened by human behaviour, due to changes in land use, water pollution and non-sustainable forms of fishery, forestry and tourism among others.

The transition towards a fair green economy in line with the Global Gateway Agenda requires sufficient capital and technical support. 

Objectives

The eco.Business Fund is a joint initiative of investors to promote business and consumption practices that contribute to biodiversity conservation, the sustainable use of natural resources, climate change mitigation and adaptation to its impact.

The Fund seeks investments that conserve nature and foster biodiversity, bringing economic and environmental benefits to the local communities. The Fund focuses on sustainability in four economic sectors: agriculture and agri-processing, fisheries and aquaculture, forestry, and sustainable tourism.

Project activities

The Fund provides dedicated financing either through intermediaries committed to promoting green finance or directly through businesses that pursue sustainable production and consumption. In addition, these intermediaries and business can access technical assistance provided by the eco.Business Development Facility.

Results

The project shall deliver the following results:

• 271 000 hectares of farmland under sustainable management
• 117 000 hectares of farmland under soil conservation practices supported
• 4 009 loans granted to final beneficiaries
• USD 489 million in accumulated loans to partner institutions
• 480 hectares of soil erosion avoided
• 33 000 litres of herbicides avoided
• 169 000 m³ of liquid waste treated or recycled
• 8.3 million tons of CO2 stored by agroforestry activities
• 4.3 million m³ of water saved
• 380 000 direct jobs supported

Implementing partner

KFW

Co-implementing partners

OEEB, Carl Zeiss Foundation/Stiftung, Finance in Motion, Calvert Impact Capital, ASN Bank, FMO Entrepenurial Development Bank, UK Government, Deutsche Bank AG, Land Brandenburg, Raiffeisen Bank International, The German Federal Environmental Foundation, Allianz Care, DEFRA UK, Inter-American Development Bank (IDB), Federal Ministry for Economic Cooperation and Development (BMZ)