Latin America and the Caribbean

Suriname


SDG Finance - Catalytic Investment

The Accelerator for Agriculture and Agroindustry Development and Innovation Plus (3ADI+): Sustainable Pineapple Value Chain Development

Sustainable Development Goals

Brief Description

The Pineapple Innovation Hub will attract and de-risk SDG-compliant investments into the pineapple value chain in order to increase productivity and income of smallholder farmers.The joint programme is expected to start in April 2022, after the completion of the design and pre-feasibility phase in 2021.

Why

Suriname's interior regions are underdeveloped and under-serviced, with the population suffering disproportionately from poverty and unemployment. Sustainable agriculture is considered a growth opportunity. Modest collaboration across stakeholders, lack of investments, absence of extension services, and limited business skills and knowledge of markets have prevented the emergence of sustainable value chains thus far.

What

At least 335 hectares will be cultivated for 1000 MT of organic pineapple production, leading to an increase of farmers' income. This shift towards permanent organic farming systems with a decreased portion of land use will significantly reduce environmental pressure on primary and secondary forests. By supporting 110 small businesses and farmers, at least 100 full time equivalent jobs will be created. At least 30% of small farmers and businesses supported will be women led. At least 215 hectares of forest will be preserved.

How

A mix of financing solutions is proposed to address the financing constraints that have prevented Suriname to seize the great potential of the pineapple value chain. These are: a collateral support facility that will de-risk commercial bank loans and allow private sector banks to lend to smallholder farmers, a Pineapple Cooperative Development Company that will centralize production planning and ultimately act as marketer of the pineapples and a Pineapple Innovation Hub, a local foundation that will provide tailored agronomic and business support and management services to farmers. This holistic approach offers a context-specific blended finance solution for placing Suriname on a course to be a sustainable pineapple producer for the local and international markets.

Results

The joint programme is expected to start in April 2022, after the completion of the design and pre-feasibility phase in 2021.

Quick facts

Allocated by Joint SDG Fund:
2,193,055 USD

Co-funding:
599,204 USD

Total Funding:
2,792,259 USD

Financial Leverage:
11,100,000 USD

UN Agencies:

FAO, UNIDO, ILO, UNFPA


National Partners:

Islamic Development Bank, Inter-American Development  Bank, Ministry of Agriculture, Animal Husbandry and Fisheries Ministry of Economic Affairs, Entrepreneurship and Technological Innovation, Trustbank Amanah