The two organizations will pilot a participatory governance model that will center indigenous enterprises, providing them with capital and resources to empower entrepreneurship across a variety of unique cultures and historically marginalized communities
El Cerrito, Calif., June 1, 2023 – NESsT, a global impact investor and venture philanthropist, together with the Inter-American Development Bank (IDB) announced today a new pilot program to support 15 enterprises in the Amazon Basin with financial capital and business mentoring resources. The program will launch as a 18-month pilot to test a new model of governance that will form an alliance with regional and national indigenous federations, including Asociación Interétnica de Desarrollo de la Selva Peruana (AIDESEP), Organización Nacional de los Pueblos Indígenas de la Amazonia Colombiana (OPIAC), and Confederación de Nacionalidades Indígenas de la Amazonía Ecuatoriana (CONFENIAE), to provide support to indigenous enterprises to foster climate change adaptation and channel resources to local communities.
Small and medium enterprises (SMEs) are responsible for over 70% of employment in local economies. The new joint pilot program will provide support to indigenous SMEs at a grass-roots level and to align with the best interests of the local populations. The project will work with indigenous enterprises to strengthen their entrepreneurial capacities and receive financing to implement environmentally sustainable and marketable products or services.
“Our partnership with IDB is built upon the foundation that our team at NESsT has established across the Andes Amazon region and supporting local indigenous enterprises in the NESsT Acceleration Portfolio,” said Nicole Etchart, Co-founder and Co-CEO of NESsT. “Centering the work of indigenous enterprises and entrepreneurs, in alliance with national indigenous federations, is most fundamental to our work within the region.”
This joint partnership program is strengthening the development of sustainable and environmentally responsible enterprises with the tools and resources to succeed, setting an important example for the industry, and inspiring others to replicate and scale similar programs that reach the individuals and communities most in need of support.
The first two enterprises to join the pilot program, include:
Photo: Asháninka worker with cacao tree, Kemito Ene
Credit: Daniel Martínez, WWF Perú
Kemito Ene – a cooperative of cocoa and coffee producers of the Asháninka indigenous nationality, from the Ene River Basin, dedicated to the sustainable production and marketing of certified organic and fair-trade cocoa, cocoa-derived products, and roasted and ground coffee beans. This indigenous enterprise is endorsed by the Central Asháninka of the Ene River Basin (CARE).
AFIMAD (The Indigenous Forestry Association of Madre de Dios) – an association of Amazon nut collectors founded as an alternative solution to the indiscriminate felling of trees, which was the only means of livelihood for local communities. The association covers the entire production chain from harvesting, collection and transport in the field; to the processing and packaging tasks for its direct commercialization in the national and international market. This indigenous enterprise has the support and endorsement of the Native Federation of the Madre de Dios River and its tributaries (FENAMAD).
Photo: AFIMAD worker collecting Amazon nut
Credit: Daniel Martínez, WWF Perú
Additional enterprises will be named throughout the year to join the pilot program.
The NESsT - IDB partnership sets an important precedent for engaging local stakeholders, providing best practice on governance, empowering local ecosystems and sector building efforts. Following the initial pilot program, NESsT and IDB intend to further scale their partnership to additional regional projects.
Despre NESsT
NESsT is a catalyst for social enterprises in global emerging markets. NESsT provides financial capital, training and mentoring, and access to markets for a high-impact portfolio of social enterprises that solve critical social problems within marginalized communities across Central and Eastern Europe and Latin America. Since its founding in 1997, NESsT has invested over $27M, trained and supported over 30,700 entrepreneurs, and accelerated and financed 233 enterprises sustaining more than 89,000 formal jobs, and improving the lives of over one million people.
About IDB
The Inter-American Development Bank's mission is to improve lives. Founded in 1959, the IDB is one of the main sources of long-term financing for the economic, social, and institutional development of Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and offers policy advice, technical assistance, and training to public and private clients throughout the region.
In alliance with indigenous federations of the Amazon basin:
Cover photo: Asháninka workers in the Ene River Valley. Credit: Daniel Martínez, WWF Perú