eco business Fund makes direct investment in sustainable cocoa production in Brazil

The investee, Gencau, Brazil’s renowned chocolate producer, will use the financing to extend sourcing of cacao from their own sustainable plantation and from smallholder farmers adopting agroforestry practices. 

 

Luxembourg and São Paulo, October 9, 2025.  The eco business Fund has made its first investment in one of the very first biodiversity-aligned agribusiness receivable-backed securities in Brazil, marking a milestone as its inaugural  corporate debt transaction in the country. This transaction with the agribusiness company Gencau expands the fund’s portfolio  and channels capital into one of Brazil’s most strategically important and deforestation-sensitive sectors: cocoa.

In Brazil, a CRA (Certificado de Recebíveis do Agronegócio) is a fixed-income security backed by agribusiness-related debt, offering farmers and agribusiness firms an alternative source of financing through investor-backed securitization. The CRA, structured by Itaú BBA with Canal Securitizadora, totals BRL 80 million, with the ecobusiness Fund subscribing BRL 20.9 million (approximately USD 4 million) as part of a joint BRL 41.8 million investment with LAGreen.

Michael Evers, Chairperson of the Board of the ecobusiness Fund remarked “Global demand for cacao is rising, while supply from Africa and Latin America is increasingly constrained. Through this biodiversity-aligned CRA investment with Gencau, we’re helping channel capital into sustainable cocoa production in Brazil, supporting both large producers and smallholders to strengthen supply resilience in a sector under growing pressure.”

Diego Stapff, the fund’s Portfolio Manager at its advisor, Finance in Motion, added: “This investment supports production increases that are grounded in sustainable land-use practices and deforestation prevention, helping reduce pressure on nature while strengthening the resilience of Brazil’s cocoa sector.”

Gencau CEO, Adriano Pedroso remarked “At Gencau, we believe that sustainable growth goes hand in hand with farmer prosperity and biodiversity conservation. This partnership with LAGreen and the eco.business Fund allows us to expand agroforestry, strengthen traceability, and offer fairer opportunities for hundreds of family farmers. Together, we are setting a new standard for responsible cocoa production.”

The expected impact of this transaction is substantial and aligns with several Sustainable Development Goals. More than 800 family farmers are expected to benefit from improved incomes through fair contracts and Advisory & Capacity Building support, with plans to expand support to over 2,000 smallholders by 2030, contributing to SDG 2 (Zero Hunger) and SDG 8 (Decent Work). Agroforestry-based cocoa production will reduce deforestation pressures and enhance biodiversity, supporting SDG 13 (Climate Action) and SDG 15 (Life on Land). The joint investment with LAGreen amplifies the fund’s catalytic impact, fostering partnerships for sustainable development in line with SDG 17 (Partnerships).

Proceeds from the transaction will be used to source cocoa from sustainable smallholder producers many of which produce under agroforestry systems integrating cocoa with native trees, provide Advisory & Capacity Building support and incentives to smallholders, and enhance processing and local value creation in Brazil’s cocoa sector. This landmark transaction underscores the eco.business Fund’s commitment to advancing sustainable production practices, biodiversity conservation, and responsible resource use.

About Gencau

The Gencau Group was born from the union of two entrepreneurs passionate about chocolate. On one side, Ernesto Ary Neugebauer, descended from a pioneering family in the industry, which has been producing chocolate in Brazil since 1891. On the other, Adriano Sartori Pedroso, with experience in the industrial sector and over 10 years working with machinery, equipment, and solutions for the chocolate industry. The main goal of these two visionaries is to provide high-quality cocoa ingredients with guaranteed origins, respecting the entire production chain. This means operating sustainably, from the rural producer to the end customer. 

For more information, please visit: www.gencau.com 
 

About the eco business Fund

The eco business Fund promotes business and consumption practices that contribute to biodiversity conservation, to the sustainable use of natural resources, and to mitigate climate change and adapt to its impacts in Latin America, the Caribbean, and sub-Saharan Africa. By providing financing for business practices that conserve nature and foster biodiversity, the fund seeks investments with both environmental and financial returns. The eco business Fund provides financing through three avenues: local financial institutions that are committed to the fund’s mission and which have the capacity to reach its target group; directly to its target group (i.e. companies and producers); and in the case of sub-Saharan Africa, to real sector intermediaries. The fund supports sustainable operations in the sectors of agriculture, fishery (including aquaculture), forestry and tourism. Operating together with each of the two sub-funds, are two development facilities that provide high-impact Advisory and Capacity Building support to investees and final borrowers.

An impact investment fund advised by Finance in Motion, the eco business Fund was initiated by Germany’s KfW Development Bank and Conservation International with first loss capital from the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Union, and the UK Department for Environment, Food and Rural Affairs (DEFRA).

The sub-fund for sub-Saharan Africa was formally launched in 2020 with initial funding from BMZ. 

The sub-fund for Latin America and the Caribbean has received funding from numerous other prestigious development finance institutions and institutional investors.

For more information please visit www.ecobusiness.fund 

About Finance in Motion  

Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.

For more information, please visit us at: www.finance-in-motion.com  
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