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Rural Development Fund in Espirito Santo
Rural Development Fund in Espirito Santo
Sector: Agriculture
Country: Brasil
Partner: Espírito Santo em Ação
Beginning Year: 2014

Etimos is planning the establishment of an investment fund - Rural Development Fund - for the development of rural businesses in the Brazilian state of Espirito Santo.

The idea
The Rural Development Fund is a joint initiative of public and private actors, to support the development of small rural businesses through responsible impact investments. It is a tool that combines financial returns with environmental sustainability and socio-economic development, thus generating a strong impact on local communities.
The state of Espirito Santo is located in the southeast of Brazil. Is characterized by:

  • a fast-growing economy
  • a marked distinction between the coastal area, able to attract investment and generate wealth, and the inner regions with a rural economy which has ample room for growth, but few dedicated financial resources, especially in support of small producers
  • a population largely of Italian origin, resulting from immigration flows at the end of the ‘800s.

The rural economy's growth potential in Espirito Santo is confirmed by these elements:

  • a land based on smallholding and the family farm structure (more than 60,000 families involved)
  • an increasingly strong demand for high quality agricultural products by the coastal communities as a result of economic and demographic growth
  • a food supply chain in need of strengthening, both in the area of processing and distribution of products, and in terms of marketing and commercialisation
  • a wealth of biodiversity and agricultural techniques to be rescued and enhanced
  • the presence of public policies to support rural development and discourage migration towards the coastal areas.

By means of the Rural Development Fund, Etimos aims to:

  • promote economic development of the target area, focusing on the impact indicators identified in collaboration with local authorities
  • attract capital from the public and private sectors, to promote microequity investments and medium term loans to support small rural businesses in the area
  • support economic activities in rural areas, to help them undertake processes of consolidation, modernisation and technological innovation, in turn capable of generating good economic performance and strong social and environmental impact
  • activate an operations desk for Italian businesses interested in entering the Brazilian market and developing its potential.