Almost USD 14 million mobilized to strengthen resilience in the dry corridor and arid zones of Central America

Since 2022, the countries of the Central American Integration System (SICA) region: Belize, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, and the Dominican Republic, have mobilized nearly USD 14 million for projects that enhance climate resilience and economic development in the most vulnerable areas through the Hand-in-Hand Initiative of the Food and Agriculture Organization of the United Nations (FAO).

The investments have focused on four priority areas: Agricultural Zoning for Climate Risk (ZARC), digital soil mapping, support for micro, small, and medium-sized enterprises (MSMEs) with digital tools, and strengthening the National Institutes of Innovation, Development, and Agricultural Research (INIA).

Advances in Investment Proposals

SICA countries have improved the technical capacity of Ministry of Agriculture personnel in using the Agricultural Zoning for Climate Risk (ZARC) tool and in preparing agro-environmental zoning guides. Additionally, within the framework of Triangular South-South Cooperation with the Brazilian Cooperation Agency (ABC) and EMBRAPA, progress is being made in collecting, analyzing, and standardizing updated information on crops, soils, and climatology in the identified municipalities of El Salvador, Guatemala, and Honduras.

Moreover, through the Ministry of Agriculture, Livestock, and Food (MAGA) in Guatemala and the Secretariat of Agriculture and Livestock of Honduras (SAG), respectively, digital soil mapping is being carried out, running from May 2023 to May 2027, funded by the United States government. Both countries are working on a national soil information system and establishing national support systems for decision-making to boost soil fertility and health.

For MSMEs, FAO and the Regional Center for the Promotion of MSMEs (CENPROMYPE) are developing digital tools that are being made available to rural MSMEs and the business development ecosystem, also strengthening capacities in areas of business development, marketing, and market access.

A network of collaboration and exchange of experiences has been created among the National Institutes of Innovation, Development, and Agricultural Research, with the support of regional institutions to strengthen technical and institutional capacities. Through dialogue spaces, opportunities, demands, supply, and the experience of the INIA in using agroclimatic and agronomic information for the Dry Corridor and arid zones have been discussed.

On water solutions, the investment note was reformulated to advance in closing gaps in water security in vulnerable rural areas through two components: planning regional/national public goods and investment to promote the management and development of integrated water solutions for agricultural production and human consumption.

The presentation of the Investment Note was attended by the Minister of Agriculture, Livestock, and Food (MAGA) of Guatemala, Maynor Estrada; Ingrid Figueroa, Executive Director of the General Secretariat of SICA; Jair Urriola Quiroz, Executive Secretary of the Central American Commission for Environment and Development (SE-CCAD); Lucrecia Rodríguez, Executive Secretary of the Central American Agricultural Council (SE-CAC); David Cabrera, Executive Director of the Regional Center for the Promotion of MSMEs (CENPROMYPE); Adoniram Sanches Peraci, FAO Subregional Coordinator for Mesoamerica. Also present were the Executive President of CABEI, Gisela Sánchez; Country and Project Manager of CABEI, Manuel Torres; and Francisco Bueso, Senior Agriculture Specialist, World Bank.

Complementary Actions

To complement the Hand-in-Hand Initiative, the Dry Corridor has a regional Ecosystem-based Adaptation program for the next seven years, led by CABEI, with the support of FAO, CCAD, and SE-CAC, funded with over USD 268 million from the Green Climate Fund, CABEI, and co-financing from the countries. Additionally, USD 20.3 million has been mobilized for water security and risk management projects, with support from Spanish Cooperation, Korea, and the GEF, and dialogues are advancing with the World Bank.

About the Investment Forum and the Hand-in-Hand Initiative

Hand-in-Hand (HiH) is FAO's flagship initiative, launched globally by Director-General Qu Dongyu in 2020. To date, 72 countries have joined this effort.

The 2024 Investment Forum is a platform for countries and regions to present investment opportunities to investors, multilateral development banks, the private sector, and donors, focusing on the potential of investment in national agriculture and investment opportunities in food value chains.