Sustainable Capital Group was requested by Panama's agricultural development bank (BDA) to present its latest project at a local agricultural fair. The purpose of the fair is to showcase advancements, technologies and opportunities in the agricultural field and features products ranging from tools to finance options.
The Banco de Desarrollo Agropecuario Panama (BDA) has a permanent stand at the annual agricultural fair in Chepo, and asked SCG to present its latest project to potential participants. Sustainable Capital Group's most recent project, the Community Collaboration Project, is being implemented on a national scale, in co-operation with BDA.
Landowners across Panama looking to increase their land productivity are invited to participate in the program, with financial assistance being offered by the development bank. Landowners can apply for a low rate loan with excellent conditions (2.5% interest, 3 years no repayment period, 25 year loan term) which will allow them to prepare and plant their land with tree seedlings provided by Sustainable Capital Group. The seedling price includes soil suitability tests prior to purchase as well as technical assistance during planting and throughout the lifetime of the project.
Sustainable Capital Group guarantees the purchase the landowners' harvest, thereby securing the repayment of the loan from BDA. SCG is currently investing in the facilities required for the refinement of the harvested materials, which will produce high quality renewable energy and timber products for sale in local and international markets.
The presentation in the agricultural fair was led by Patrick Visser who has recently returned to Sustainable Capital Group's board of Directors. The presentation was attended by farmers and land owners from across Panama as well as from the Chepo area, where SCG's own plantations and seedling propagation centre are located. The attendees represented approximately 2000 hectares of land that could be included in the program.
The project allows landowners to maximise their yield potential without having to make a cash investment. In many cases, the land in question is standing idle and forms a part of a greater estate, such that borrowing against it does not present a significant risk to the owner's livelihood, lifestyle or financial security. The program was received with a great deal of enthusiasm at the fair and most land owners present showed interest in participating.
The project will help BDA to achieve its lending quota, which is seldom met. Last year, less than half of the funding capabilities of the bank were utilised due to a lack of credible projects. In turn, SCG will receive n immediate income from seedling sales, and a future income from the sale of refined timber and renewable energy products, for which there is a proven market.
SCG will be presenting its latest project in fairs and exhibitions across the country during 2013.
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