Investment opportunities in El Salvador

0% of total country territory Suitable Land

It has been estimated that around 945,000 ha are suitable for reforestation, but only 6,000 ha of commercial plantations have been established. The investment gap is likely a result of past civil war, out-migration and a general lack of agricultural credit.

0% imported timber Gap Supply – Demand

There is a gap between domestic supply and demand of timber. In 2012, El Salvador had a timber consumption of around 300,000 cubic meters, 98% of which was imported.

Approximately 0Jobs/100ha Social Impact

Forest landscape restoration strategies benefit the stakeholders involved in the value chain. In combination with agroforestry systems, FLR activities create local jobs in rural areas, positively impacting the livelihood of the locals. In the Salvadorian context, forty jobs per hundred hectares of newly forested land could be achievable.

0million $ Investment Requirement

El Salvador pledged 1.3 million hectares of land for Forest Landscape restoration under the Bonn Challenge. It will be key to involve the private sector for the immense investment volume it will require to fund such action. Example: 50,000 ha of plantations require an investment of about USD 30 million.

El Salvador: Why You Should Get Involved

Economic opportunities

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.

Environmental benefits

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.

Social wellbeing

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.

Institutional security

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.