At a Glance

Location: Madre de Dios, Peru

Impact Areas: Labor Inclusion, Environment, Sustainable Income

People Supported:
Indigenous Communities, Small-scale Farmers, Women

Joined NESsT Portfolio:
2023

https://afimadindigena.com/

Overview

Peru, which has the second-biggest share of the Amazon Rainforest after Brazil, has lost an average of more than 326,000 acres of forest per year since 2001 primarily due to deforestation practices that convert forest into agricultural land.

AFIMAD (The Indigenous Forestry Association of Madre de Dios) is an association formed by Amazon nut collectors. It emerged as an alternative solution to the unsustainable practice of indiscriminate tree felling, which had been a source of income for local Indigenous communities in the past. This Indigenous enterprise has the support and endorsement of the Native Federation of the Madre de Dios River and its tributaries (FENAMAD).

The Amazon nut is a natural source of omega-6 and omega-9 fatty acids, essential amino acids, vitamin E, and selenium, which are associated with potential health benefits, including a possible reduction in the risk of cancer. It is only produced in three countries of the world: Bolivia, Brazil, and Peru. The nuts are collected in a sustainable manner, playing a pivotal role in preserving the forest's ecological equilibrium for the long run.

AFIMAD works with local communities in the sustainable collection, transformation, and marketing of Amazon nuts and derived products, which are sold directly to national and international markets. The association brings together 12 native communities belonging to nine different Indigenous Peoples (Ese-eja, Shipibo Konibo, Kichwa Runa, Yine, Sapiteri, Harakbut, Matsiguenka, Asháninka, and Amahuaca). With the support of AFIMAD, members of the association also carry out sustainable fishing activities and, in some cases, the sale of artisan goods, to support their families.

AFIMAD provides training to its members, helping them obtain organic and Fairtrade certifications and meet international demands. The members also receive support to implement harvesting and post-harvesting activities that foster biological diversity, including forest conservation programs.

NESsT Investment

AFIMAD has recently expanded its business line to include the collection of murumuru, also known as huicungo – a nutritious fruit which is peeled and primarily sold as butter for use in the cosmetics industry. With the support of NESsT, AIDESEP and IDB, AFIMAD will employ 100 women to collect murumuru, offering a new line of work for Indigenous women in the region.

With NESsT’s investment, AFIMAD will have the working capital required to develop this new product line and the guidance from NESsT portfolio managers to establish forest management standards, access the legal permissions required for the collection of forest resources, and strengthen its governance. 

As part of the NESsT Amazonia portfolio, AFIMAD will track and measure the environmental effects of its sustainable practices. An example of which is a carbon neutral certified sustainable drying system fuelled by waste Amazon nut shells in collaboration with ASCART. 

Additionally, NESsT will connect the association with other impact investors and provide technical assistance to guide the association toward investment readiness.

Photos: ©Daniel Martínez