Investment opportunities in El Salvador
El Salvador: Why You Should Get Involved
Credit to the private sector as a whole grew by 6.4% in 2018 and could further increase in new areas such as FLR. In El Salvador, the livestock sector has been stable during the last decades, with a contribution of around 20% of the total agricultural GDP. The combination of agroforestry systems and cattle ranching offers promising investment opportunities.
In El Salvador, large proportions of agricultural land are used inadequately and suffer from soil erosion. The loss of natural forest has caused landslides and fires, resulting in evacuations and a great risk for people. FLR activities overcome these challenges, offering environmental benefits in terms of ecosystem services while reducing climate risk. Furthermore, FLR investment along with the implementation of agroforestry systems for timber and coffee production will result in 0.09 GtCO2 of carbon sequestration potential as climate benefit.
Although the coffee sector has shown a decline during the last three decades, FLR investment can contribute to strengthen this and other sectors. While the performance of cattle ranching has been stable and the sugar cane and forestry sectors have maintained a good contribution to the agriculture GDP (approximately 6%), diversified agroforestry systems are perfectly suited to improve the quality of life for locals.
Through the Ministry of Agriculture (MAG) and the Ministry of Economy (MINEC), the government of El Salvador has developed incentive programs to support and develop forestry, including agroforestry and forest plantations. Defining incentives, such as payments for ecosystems services, reforestation strategies and sustainable forest management programs, shows the country’s commitment to ease FLR approaches based on private investments. The country’s REDD+ Readiness Package foresees a national REDD+ program and the Restoration of Ecosystems and Landscapes Program, with potentially positive outcomes for FLR.