Fund Objectives

The purpose of the fund is to:

  1. Improve the commercial viability of indigenous enterprises
  2. Increase private sector investment in indigenous enterprises
  3. Improve the protection of the forest and  sustainable land use management
  4. Increase the well-being of their communities

To achieve this AIV:

  1. Increases the availability of flexible capital to co-ops
  2. Provides financial incentives to borrowers to meet social and environmental targets and increase their ability to measure their impact on the environmental and community
  3. Provides technical assistance to farmers to improve knowledge of regenerative farming practices (to increase output and improve the environmental impact)
  4. Supports co-ops to find buyers and develop new business opportunities.

Video

Video : Amazon’s Indigenous People Live Off Income From Brazil Nuts.

Stage 1 – Peru

The land use, land use change and forestry (LULUCF) sector contributes with around 50% of the country emissions.

In the Peruvian Amazon 78% of deforestation occurs in areas less than 5ha– small-scale agriculture is considered the main driver of deforestation.

There is a growing market for sustainably grown cocoa, and coffee, and international commitments to zero deforestation supply chains.

During the last years indigenous enterprises have managed to produce and export hundred of tonnes of sustainable cocoa, coffee and Brazil nuts. However, trade finance from commercial banks is not available to indigenous enterprises.

To expand the number of hectares sustainably managed and attract private sector investment, AIV will:

  • Provide farmers with affordable finance – for working capital through trade finance and for targeted capex;
  • Assist co-ops to find buyers for their produce;
  • Provide technical assistance to increase the adoption of sustainable farming practices;
  • Invest in monitoring tools to measure the environmental and social impact and provide financial incentives to farms to reach agreed targets.