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Kawá Project Aims to Raise R$ 1 Billion by 2030
Kawá, an investment fund focused on small rural properties in Brazil, has the main objective of helping to develop a family-based and regenerative agriculture ecosystem for cocoa cultivation. Launched this week, the initiative aims to raise R$ 1 billion by 2030 to invest in projects linked to the fruit’s production chain in the states of Bahia and Pará.
The project is a partnership between Instituto Arapyaú, an organization dedicated to fair, inclusive, and low-carbon development in the country, and the NGO Tabôa Fortalecimento Comunitário, which works to promote access to financial resources and encourage cooperation in sustainability and socio-environmental justice projects.
Improving the Quality of Life for Small Producers
For Vinicius Ahmar, bioeconomy manager at Instituto Arapyaú, the Kawá project will significantly contribute to improving the living conditions of small cocoa farmers, who generally have low income and productivity.
“With Kawá, we want to scale up positive economic, social, and environmental impacts, attracting larger investors to unlock productive models that make sustainable use of the land and generate income for those who need it most and who conserve the forest,” he said.
First Phase Will Benefit 1,200 Farmers
Several organizations are part of the initiative, which plans to benefit, in its first phase, 1,200 farmers in the states of Bahia and Pará, with an investment of approximately R$ 30 million.
The name Kawá refers to the pre-Columbian name for cocoa, kakawa. The initiative combines concessional and philanthropic resources with both public and private capital.
Fiagro with Simplified Credit Methodology
Kawá is classified as an Investment Fund in Agribusiness Production Chains (Fiagro). The methodology for granting credit was designed to be simpler and more accessible to small producers.
Upon receiving credit approval, the producer has up to 45 days to make the investment on their property. After this period, the repayment term is 36 months, with an average grace period of six months.
The financial resources can be used to cover costs such as fertilization, irrigation, labor, purchase of agricultural equipment, and crop densification with new cocoa seedlings.
Potential for Trading Carbon Credits
Additionally, Kawá foresees the possibility for producers to trade carbon credits resulting from environmental conservation on their properties. The initiative also has a partnership with the National Association of Cocoa Processing Industries (AIPC), which has expressed interest in purchasing the cocoa produced by the farmers benefited by the fund.
Technical assistance to producers will be provided by the Intermunicipal Consortium of the Mosaic of APAs of the Lower South of Bahia (Ciapra), Fundação Solidaridad, and Polímatas Soluções Agrícolas e Ambientais.
Resumo em Português:
O fundo Kawá, lançado no Brasil, visa investir R$ 1 bilhão até 2030 para apoiar pequenos produtores de cacau na Bahia e no Pará, promovendo agricultura familiar e regenerativa. A iniciativa é uma parceria entre o Instituto Arapyaú e a ONG Tabôa. A primeira fase beneficiará 1,2 mil agricultores com R$ 30 milhões. O fundo Fiagro oferece crédito simplificado para custeio e investimento, com potencial para comércio de créditos de carbono. A assistência técnica será fornecida por diversas organizações, e a indústria de processamento de cacau demonstrou interesse na compra da produção.
Resumen en Español:
El fondo Kawá, lanzado en Brasil, tiene como objetivo invertir R$ 1 mil millones hasta 2030 para apoyar a pequeños productores de cacao en Bahía y Pará, promoviendo la agricultura familiar y regenerativa. La iniciativa es una asociación entre el Instituto Arapyaú y la ONG Tabôa. La primera fase beneficiará a 1.200 agricultores con R$ 30 millones. El fondo Fiagro ofrece crédito simplificado para costos e inversión, con potencial para el comercio de créditos de carbono. La asistencia técnica será proporcionada por diversas organizaciones, y la industria de procesamiento de cacao ha demostrado interés en la compra de la producción.
