Facilitating increased access to finance and markets for local smallholders

Only a small portion of international biodiversity and climate funding reaches SMEs on the ground. SMEs often struggle to obtain financial capital to invest in sustainable businesses. Through the GFS programme, Tropenbos International aims to increase access to finance and markets for local SMEs in tropical forest landscapes — a vital part of delivering Tropenbos International’s strategy and achieving thriving, resilient and biodiverse landscapes.

Since it began, the programme has worked with smallholders and their organizations as well as with financial institutions. For example,Impact storyin Colombia we have been working with CENCOIC, an Indigenous cooperative that produces and trades coffee, following environmentally responsible and fair-trade practices. The cooperative buys coffee from its members and sells it in local and international markets. However, purchasing coffee requires a large amount of cash, which is not always available, and this affects the cooperative’s ability to pay its producers. It has been difficult for CENCOIC to access credit, as lenders consider the cooperative a high-risk business, given that they operate in a remote region that has struggled with armed conflict.

In response, in 2023 CENCOIC started working with the GFS programme and SIDI, a French investor. SIDI supports the cooperative through long-term loans, while GFS provides small guarantees (up to €200,000) that allow CENCOIC to be financed.

This innovative approach generates income for Indigenous communities, reduces risks for producers, and fosters long-term relationships between the coffee producers’ cooperative, SIDI, and Tropenbos International.

The three-way alliance has led to a loan for the purchase of coffee. The guarantees provided by GFS have been vital in reducing risk and facilitating the flow of money to the cooperative so that it can continue to operate and generate well-being for its members. In addition, GFS leverages CENCOIC’s operation, empowering it to succeed in broader markets.

With the support of the GFS programme, CENCOIC was able to better serve its members, ultimately benefitting 3,000 families. This success highlights how backing a cooperative can expand market access while boosting local economic resilience and social cohesion.