On 23 April 2019, a validation meeting was held in Santo Domingo, Dominican Republic to present the main findings of the investment prospectus for coconut value chains to key stakeholders in the country. The meeting was attended by coconut producers and processors, local financial institutions including Fondagro and Banco León, and representatives from the Ministry of Agriculture and the Ministry of Industry and Trade.
Supported by SAFIN partners Junta Agroempresial Dominicana and International Trade Center, respectively acting as in-country anchor and work stream lead, a team of experts from Fundación Capital conducted the analytical work for the investment prospectus framework (IPF) pilot in the Dominican Republic.
The prospectus details existing opportunities for small and medium producers around the coconut value chain and highlights that the coconut production can generate financial, social and environmental returns. However, these opportunities comes with some challenges at the organizational, technological and financing levels.
Three business cases reflecting concrete investment opportunities in smallholder intercropping farming, medium-scale intercropping farming, and intensive coconut farming are described in the prospectus. It also highlights three potential financing schemes to support provision of credit and investment for the coconut sector, namely a financing scheme enhancing the value chain, a patient investment fund, and a financing model with self-managed funds supported by fiduciary commissions.
During the meeting in Santo Domingo, hosted by SAFIN country anchor JAD, attendees expressed interest in these investment opportunities and in increasing financing to the coconut sector overall. This meeting demonstrated that developing investment prospectuses can incite more financing towards the agricultural sector by gathering diverse stakeholders on the same table to discuss various investment opportunities.
The IPF pilot process in the Dominican Republic was successful due to the support of the Ministry of Agriculture as co-anchor for this prospectus, and due to the close collaboration between JAD, ITC and Fundación Capital.