The Gran Chaco Americano is the second most important bioregion in South America and it is about 1,141,000 sq km in size, divided among four different countries with an estimated population of 3,985,000, its 90% lives in the Argentinian Chaco. Due to its large size and its social, economic and historical processes, this region main feature is social and economic neglect which is reflected in the lack of infrastructure, the absence of State, poor access to health care, education, connectivity and communication services.
These structural conditions become more difficult because of the lack of access to credit and financial exclusion which causes high levels of unreported employment, uprooting and the waste of local development opportunities that the region offers due to its great potential.
Considering this scenario and taking into account the experience COVIDA-20 Reactivation and Resilience Fund, the Gran Chaco Americano Bioregional Fund seeks to help to the environmental, social and economic development of the region by promoting the preservation and regeneration of the ecosystem, and the development of more sustainable value chains.
This revolving fund provides financing to entrepreneurs, cooperatives and associative groups granting credits with grace periods and subsidized rates through a blended finance system that uses resources from philanthropy, social investment and social impact. In order to set the conditions and rates for each credit granted, this model considers the particular capacity of each borrower, as well as the economic, social and environmental impact that the entrepreneurship may have by accessing the requested resources.
The fund started to be implemented in February 2022 and expects a capital turnover at least until the end of 2026. Until June 2023, the fund has granted 14 loans, accumulating a total of 176 thousand dollars and reaching more than 4,700 people (directly or indirectly). Simultaneously, a monitoring and assessment strategy was designed with Zigla that follows-up the whole process of search, selection, granting and repayment of loans and also brings information about their impact through economic, social and economic indicators.
This fund was created by the partnership of Alimentaris, which provided catalytic resources, technical advice and the possibility of assessing the impact of the model; Sumatoria Civil Association which administers and manages the fund; and Potenciar, a collective impact platform, which provided strategic and technical advice for its development.
