Root Capital is dedicated to helping agricultural enterprises become engines of impact in their communities. It supports enterprises that provide farmers with training in sustainable production to avoid deforestation, improve water and soil management, and protect the health of rural ecosystems. Most of their clients in Latin America source coffee and cocoa from agroforestry systems. They partner with Root Capital to make sound, long-term investments in rehabilitation and renovation, and to obtain the short-term working capital necessary to maintain steady trade relationships and ensure that producers can earn sustainable incomes from their land.
Given its experience in the agroforestry sector, Root Capital plans to support Initiative 20x20 through the provision of approximately USD $50 million in debt financing annually (USD $200 million until 2020) to agricultural enterprises cultivating coffee and cocoa through sustainable agroforestry systems in Latin America. This effort supports the working capital component of Initiative 20x20’s proposed financial architecture.