About the Development Facilities
Operating alongside the fund’s investment activities are the eco.business Development Facility for Latin America and the Caribbean as well as an additional Development Facility for sub-Saharan Africa. Both Development Facilities work to maximize and deepen the impact of the fund in its target regions through a broad array of technical assistance measures for promoting sustainable practices. These measures range from building capacity within local financial institutions to improve their environmental and social risk management, to providing training opportunities for clients and end borrowers.
The Development Facilities also serve as platforms to connect involved parties in the endeavor to protect biodiversity and conserve natural resources. Activities like conference sponsorships, targeted studies, and market research bring together a multitude of players essential to the promotion of a green economy – such as NGOs, investors, governments, local associations, and industry leaders, in addition to local financial institutions and producers.
Facts & Figures
All figures as of December 2018 based on eco.business Fund activities in Latin America
Development Facility Projects
- Individual Technical Assistance
- Financial Sector Support
- Applied Research
All figures as of March 2019 based on eco.business Fund activities in Latin America
In the endeavor to amplify the fund’s impact, the Development Facilities provide different types of technical assistance to the fund’s partners and end borrowers while simultaneously strengthening its four priority sectors. The technical assistance offered by the facilities directly respond to stakeholder needs. It can range from implementing Environmental and Social Management Systems to event sponsorship and financing for training and research opportunities.
How Do the Development Facilities Work?
The Development Facilities work hand-in-hand with the sub-funds, its investees, and other players in the green finance sphere to pursue the eco.business Fund’s mission.
The Development Facilities are managed by Finance in Motion, the Advisor to the eco.business Fund.
- 1 Donors provide resources promoting sustainable practices and for capacity building
- 2 Technical assistance projects are identified or designed with partner institutions
- 3 An independent commission approves the projects, provides guidelines and monitors the projects
- 4 Technical assistance projects are implemented such as such as studies, events, capacity building, and sector support
Our Projects in Latin America
The Development Facility for Latin America already has a track record of completed and ongoing projects which reflect its mission and scope of activities:
Identifying and reducing portfolio risk
Through the development of environmental indicators and the purchase of innovative geo-monitoring technologies – such as drones and modern water and soil sampling equipment – the facility helped its partner Banco Hipotecario better understand the needs of the bank’s clients in the coffee sector.
The project also increased environmental awareness within the bank and among coffee farmers, and resulted in the implementation of more sustainable practices.
Implementing an Environmental and Social Management System (ESMS)
The facility enabled the fund’s partner Multibank to improve its monitoring and evaluation system for agri-portfolio risk by improving the bank’s ESMS. The project resulted in reduced credit, legal, social, environmental, and reputational risk for the bank, increasing trust in green credit lines for the entire sector.