The DFCD announces intention to support climate-resilient coffee production in Nicaragua

The origination facility’s investment committee of the Dutch Fund for Climate Development (DFCD) has approved   

€ 103,000 grant funding for the origination of a business investment proposal for Exportadora Atlantic S.A (EXPASA), a coffee trader in Nicaragua.

EXPASA is seeking origination support in the development of an investment proposal targeting resilient coffee production under agroforestry systems.

The 1,500 ha of farmland targeted under this project will become more climate change resilient as the coffee hybrids will be used that are resilient to climate change-induced pests, diseases and climatic variability. Further, the agroforestry setting will enhance resilience against natural disasters such as hurricanes.

The production of this coffee will benefit from the market demand already established by EXPASA. With the envisaged investment EXPASA will provide approximately 300 small to medium coffee farmers with the financing to develop climate change resilient models to rehabilitate their farms.

SNV has the intention to sign a funding agreement with EXPASA for the provision of origination support to de-risk and prove the concept of innovative solutions of the business proposition. EXPASA will contribute 26% ( € 35,500) while DFCD’s grant constitutes 74% of the development costs.

The origination project will consist of:

  • Updating an Environmental, Social Impact and business model assessment around business operation (Investment plan).
  • A financial model will be structured to evaluate the financial viability of the proposed business investment plan, both at the level of the company and at the level of the producers to show the win-win relationship and demonstrate that the profitability of the company is not formed at the expense of the marginal income of the producers involved
  • Risk analysis and mitigation of the investment

 

About the DFCD

The Dutch Fund for Climate and Development (DFCD) enables private sector investment in projects aimed at climate adaptation and mitigation in developing countries. The Dutch Ministry of Foreign Affairs has made available €160 million to increase the resilience of communities and ecosystems most vulnerable to climate change. The DFCD is managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV Netherlands Development Organisation, led by the Dutch Entrepreneurial Development Bank, FMO.

About Exportadora Atlantic S.A.

Exportadora Atlantic, S.A. (EXPASA), a subsidiary of ECOM Agro-industrial Ltd (www.ecomtrading.com). EXPASA was founded in 1997 with its main office located in Managua and three branches in the departments of Matagalpa, Jinotega and Ocotal. Currently, EXPASA is the second largest coffee trader in Nicaragua. EXPASA ensures the market and price of differentiated coffee to the producer

For specific feedback or concerns on this specific project proposal stakeholders, you can contact Carlos Bueso cbuesovarela@snv.org preferably before September 30, 2021.

For general feedback or concerns on the DFCD, you can e-mail disclosure@fmo.nl

To read the full disclosure, please click here.

Carlos Bueso Varela

Energy Sector Leader