SITAWI Finanças do Bem launches new Round of Collective Loan for Amazon Business

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The Collective Loan Platform of SITAWI Finanças do Bem launches, this Tuesday (19), the 7th Round of Collective Loan. With investment options in two cooperatives whose mission is to encourage the preservation of the Amazon's biodiversity, sustainable development in the region and the empowerment of local people. The target of the round is to raise a total of R$1.4 million, being R$ 1 million for the Vale Amanhecer Farmers' Cooperative (COOPAVAM) and R$ 400 thousand for COFRUTA. There are investment opportunities with expected profitability of 9% per year, and repayment within 36 months, with the payment of monthly installments referring to the principal plus interest after an initial 3-month grace period. To participate in the Amazon Round, simply register on the website. Platform.

A pioneer in the development of financial solutions for impact, SITAWI has already mobilized more than R$ 200 million for social and environmental impact, making it the most active impact investor in Brazil. In 2019, SITAWI launched the Collective Lending Platform to connect investors and entrepreneurs with a social and environmental impact. In six Business Rounds held since then, with 21 impact deals supported, the Platform has mobilized more than R1TP2Q10 million through 584 investors.

“We don't just want to lend, we want to help entrepreneurs to have a more consistent performance, with an increasingly positive socio-environmental impact and territorial development in the Amazon”, says the CEO of SITAWI Finanças do Bem, Leonardo Letelier.

The Collective Loan Platform is carried out by SITAWI Finanças do Bem and has the Sabin Institute as a strategic partner. The Amazon Round is an initiative of the Partners for the Amazon Platform (PPA) and has as partners and funders the United States Agency for International Development (USAID) and the Humanize Institute. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), German Agency for International Cooperation, of the German government, is the institutional support, through the Sustainable Brazilian Finance Project (FiBraS), an initiative implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH with support from the Ministry of Economic Cooperation and Development (BMZ) of Germany.

About the Amazon Round organizations

Vale Amanhecer Farmers Cooperative (COOPAVAM)

The Vale do Amanhecer Farmers Cooperative (COOPAVAM) is a cooperative that extracts, improves and sells Brazil nuts. Its operations cover northwestern Mato Grosso and its own agribusiness is located in the Vale do Amanhecer Settlement, in Juruena (MT).

The northwest region of Mato Grosso is an Amazon region that registers high rates of deforestation. Despite this, this region has a large remaining area of Amazon forest, with more than 4 million hectares preserved. Sustainable extraction is essential for forest preservation.

Founded in 2008, the cooperative was born from the interest of family farmers in marketing non-timber forest products. Currently, COOPAVAM processes and markets products with organic certification (Ecocert¹) derived from nuts, natural and native 100%, such as raw and dried nuts, flour and nut oil.

The organization has 68 members and for the purchase of raw material, the cooperative has a partnership with indigenous peoples who carry out the sustainable extraction of Brazil nuts. The partnership is based on fair trade (Fairtrade certification is in progress) and today there are more than 400 extractivists divided into 6 ethnic groups[1].

In addition, the cooperative's activity contributes to the preservation of 1.5 million hectares of indigenous lands and 7.2 thousand hectares of Community Legal Reserve of the Vale do Amanhecer Settlement.

With the indigenous peoples, it has a formal partnership, in which, annually, contracts are drawn up defining the price, based on fair trade, and the volume of purchase of Brazil nuts. The price paid in the 2020 crop was R$6.00/kg versus R$2.50 paid by middlemen (local traders). In total, more than R1TP2Q10 million of income was generated directly to indigenous peoples with the purchase of Brazil nuts since 2008.

In 2020, the cooperative expanded its portfolio and made its first sale on the international market, with two containers of nuts to the company Gebana, in Switzerland, through partner P4F. The cooperative is now seeking international Fairtrade certification.

The cooperative currently has 25 customers, the four main ones: Gebana, Natura, Carrefour and Jasmine representing 92% of revenue.

Amount claimed: R$ 1 million

Use of resources: working capital, to increase the purchase of Brazil nuts. The resource available at the beginning of the harvest is essential to guarantee the organization's production and growth annually. The greater the purchase, the greater the stock of raw material and consequently the greater the production, which reduces/eliminates the “production windows” due to lack of nuts.

COFRUT

COFRUTA is an agro-industrial cooperative that sells products from the Amazon region. Created in the 70s and structured as a cooperative in 2002, COFRUTA focuses on the development of family farming and the solidarity economy in the region of Abaetetuba, in the Territory of Citizenship of Baixo Tocantins (PA). Farmers came together in order to have more strength in negotiating their products and strengthen the local economy, with fair trade, fair remuneration, and appreciation of local products.

There are 86 cooperative members in total, most of them small farmers, and 130 families in the region. For the cooperative member, COFRUTA offers decent income and fair marketing of its products. With the cooperative, these families now have an average monthly income between one and two minimum wages, in the off-season periods, and three to four minimum wages during the açaí harvest period, which is the cooperative's flagship.

COFRUTA's clients are institutional markets, via PAA (Food Acquisition Program) and PNAE (National School Feeding Program); cosmetic companies (especially Natura) and traditional retailers. COFRUTA offers its customers a variety of socio-biodiversity products, grown in agroforestry systems, and will soon have organic certification.  

Currently, the cooperative has a mix of approximately 40 products, divided into eight segments – in natura, pulp, jelly, juice, syrup, jam, oil and seeds. All processing and processing is done in the agribusiness that the cooperative has in Abaetetuba. Açaí is the standout product, both in the segment in nature as for pulp and jelly, corresponding to about 20% of the total commercialization of the cooperative.

Amount claimed: R$ 400 thousand

Use of resources: processing of raw material for building stock, which will reduce the time between the closing of contracts and receipt of payment. Today, the cooperative buys raw material and processes the products only after signing contracts.

How to invest

To participate, you must register and then choose the supported business(s) in which you will invest. The person makes the investment reservation and, to confirm, must perform a TED or generate a payment slip for the investment. Upon completion of the funding, loan contracts are issued between the parties and the investor receives the title entitled 3CB (Bank Credit Certificate), which proves the investment.

After an initial 3-month grace period, investors receive the investment value for 33 months, with the payment of monthly installments referring to principal plus interest.

The entire operation is carried out in partnership with MOVA, the first Peer-to-Peer Lending fintech approved and supervised by the Central Bank in the form of a Loan Society between People (SEP). SEP creates a direct bridge between investors and those seeking financing, eliminating the need for a bank and cutting costs. Throughout the contract, investors receive updated information, such as monitoring and a report on the socio-environmental impact of the invested businesses, their finances and businesses.