Dry Corridor

      In-depth analysis of investment cases
        Key financial and economic data
Dry Corridor 2026

INVESTMENT PROFILE
216,700,000
(in USD) Total Investment
24.3%
Internal rate of return
183,500,000
(in USD) Total NPV

SUSTAINABILITY BENEFITS
3.6M
Direct beneficiaries
387
(in USD) Income increase per capita
---
tonnes GHG impact

Why is the Dry Corridor Initiative important?

The Dry Corridor and Arid Zones Initiative is important because it addresses one of the most climate-vulnerable regions in the SICA area, where approximately 23 million people depend on agriculture and face recurrent droughts, floods, food insecurity, poverty, and migration pressures. By strengthening climate resilience, improving natural resource management, and promoting sustainable agricultural development, the initiative seeks to protect livelihoods, enhance food security, and create economic opportunities in rural territories.

What is the opportunity today?

The greatest opportunity is to leverage the region's significant agrifood   potential through strategic investments in climate-smart public goods and innovation. These include climate risk zoning, digital soil mapping, integrated water solutions, digital ecosystems for rural MSMEs, agricultural innovation systems, and sustainable market access mechanisms. Together, these investments can unlock productivity gains, strengthen resilience, and attract public and private financing.

What makes the Dry Corridor Initiative stand out in 2026?

In 2026, the initiative stands out because it has evolved from a regional vision into a concrete investment portfolio valued at USD 216.7 million, with an average internal rate of return of 24.3% and expected benefits for approximately 3.6 million people. It combines regional cooperation, technical innovation, climate adaptation, and investment readiness under the leadership of the SICA system and multiple international partners

What is the Dry Corridor Initiative objective?

The initiative aims to mobilize agrifood investments that accelerate the transformation of agrifood systems, strengthen climate resilience and adaptation, and promote sustainable economic development in rural territories of the Dry Corridor and Arid Zones of the SICA region (7 countries).

Geospatial Typologies

Agro-informatics connects information technology with the management, analysis and application of agricultural data to indentify territories with untapped agrifood potential and design more accurate and targeted agrifood interventions. The use of new technologies and techniques in agriculture, such as satellite imagery, remote sensing, and geographic information systems, enable the transformation of data into actionable information.

POVERTY
POTENTIAL
EFFICIENCY
Click on individual maps to get a detailed view on FAO GIS platform


Investment cases in the country

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Investment cases and interventions

Abaca

Agricultural Climate Risk Zoning (ACRZ)

INVESTMENT
USD 34M
INTERNAL RATE OF RETURN (%)
28%
NET PRESENT VALUE
USD 22.3M
DIRECT BENEFICIARIES
92,000
INDIRECT BENEFICIARIES
414,000
INCOME INCREASE PER CAPITA
USD 214
EMISSION REDUTION (EXACT)
--- tCO2e

The investment note for the Agricultural Zoning of Climate Risk (ACRZ) provides the SICA with innovative tools to plan agricultural production in the face of climate variability and change.

The initiative promotes the generation and updating of agroclimatic, climatic, soil and phenological information, integrating multi-criteria databases and analysis tools that support decision-making in the agricultural sector. It includes the establishment and strengthening of national ACRZ systems, the preparation of suitability and risk maps by crop and planting date, and the development of technical capacities in national institutions responsible for agricultural planning.  It also seeks to facilitate producers' access to agricultural financing and insurance through better climate risk management.

The initiative will provide reliable information to producers, extension services, financial institutions and public policy makers. This will reduce production losses, guide investments, strengthen agricultural insurance systems and promote measures to adapt to climate change, consolidating the ACRZ as a strategic regional public good for the resilience and sustainability of agrifood systems.

Seaweed

Digital soil mapping

INVESTMENT
USD 59M
INTERNAL RATE OF RETURN (%)
24%
NET PRESENT VALUE
USD 69M
DIRECT BENEFICIARIES
511,000
INDIRECT BENEFICIARIES
2.3M
INCOME INCREASE PER CAPITA
USD 145
EMISSION REDUTION (EXACT)
--- tCO2e
Mango

MSMEs and digital ecosystems

INVESTMENT
USD 42M
INTERNAL RATE OF RETURN (%)
24%
NET PRESENT VALUE
USD 69M
DIRECT BENEFICIARIES
22,400
INDIRECT BENEFICIARIES
100,800
INCOME INCREASE PER CAPITA
USD 712
EMISSION REDUTION (EXACT)
--- tCO2e
water drycorridor

Integrated water solutions

INVESTMENT
USD 56.5M
INTERNAL RATE OF RETURN (%)
25%
NET PRESENT VALUE
USD 80M
DIRECT BENEFICIARIES
21,900
INDIRECT BENEFICIARIES
120,450 
INCOME INCREASE PER CAPITA
USD 712
EMISSION REDUTION (EXACT)
--- tCO2e
dry corridor 4

Regional Hub on responsible business conduct in agrifood chains - Hub AgriCER

INVESTMENT
USD 14M
INTERNAL RATE OF RETURN (%)
23%
NET PRESENT VALUE
USD 4.6M
DIRECT BENEFICIARIES
10,000
INDIRECT BENEFICIARIES
30,000
INCOME INCREASE PER CAPITA
USD 456
EMISSION REDUTION (EXACT)
--- tCO2e

Resources

FAO's Hand-in-Hand Initiative
21/12/2023

The Hand-in-Hand (HIH) Initiative supports the implementation of nationally led, ambitious programmes to accelerate agrifood systems transformations...

Contacts

For more information, please contact the Hand-in-Hand team