Agricultural irrigation systems for small and medium producers with financing

Irrigation

Photo by Shutterstock

Agricultural irrigation systems for small and medium producers with financing
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Offer irrigation services and infrastructure equipped with technology tailored for small and medium plantations, financing them based on the timing of their harvests.

Expected Impact

Increase irrigation systems financing to improve agricultural outputs, reduce poverty and ensure food security.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
2.48% coverage with irrigation.- total cultivated area of 6,547,372 ha (1)
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Responsible Consumption and Production (SDG 12) Decent Work and Economic Growth (SDG 8)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10)
Sector Sources
  • (I) Gobierno de Paraguay. 2014. Plan Nacional de Desarrollo Paraguay 2030. https://www.stp.gov.py/pnd/wp-content/uploads/2014/12/pnd2030.pdf (II) Ministerio de Agricultura y Ganaderia. 2013. Marco estratégico agrario. https://faolex.fao.org/docs/pdf/par179001.pdf (III) International Fund for Agricultural Development. 2016. Paraguay. https://www.ifad.org/en/web/operations/w/country/paraguay (IV) UNOPS. 2020. To grow, eat and sell: Modernizing agriculture in Paraguay. https://www.unops.org/news-and-stories/stories/to-grow-eat-and-sell-modernizing-agriculture-in-paraguay (V) OECD. 2018. Multi-dimensional Review of Paraguay. https://www.oecd.org/development/mdcr/countries/paraguay/Paraguay_Vol_1_Overview_En.pdf
IOA Sources
  • (1) Jorge Ogasawara. 2017. Estudio de los diferentes sistemas de riego agrícola utilizados en el Paraguay. https://www2.aladi.org/nsfaladi/estudios.nsf/4040FC1C4A77A47E0325819B0065757B/$FILE/DAPMDER_04_17_PY.pdf (2) Brenda del Carmen Alvarado Tamayo. 2015. Proyecto de inversión de un sistema de riego en el ejido de limones, municipio de Bacalar, Q. Roo. http://www.itzonamaya.edu.mx/web_biblio/archivos/res_prof/ige/ige-2015-16.pdf (3) Aswath Damodaran. 2021. Current Data. https://pages.stern.nyu.edu/~adamodar/ (4) FAO. S.F. Fortalecimiento de la agricultura familiar, una estrategia para el desarrollo nacional. https://www.fao.org/paraguay/noticias/detail-events/zh/c/1263581/ (5) ONU. 2020. Examen Periódico Universal – Tercer Ciclo - Paraguay. https://uprdoc.ohchr.org/uprweb/downloadfile.aspx?filename=8456&file=SpanishTranslation (6) International Fund for Agricultural Development. 2016. Investing in rural people in Paraguay. https://www.ifad.org/documents/38714170/39972349/Investing+in+rural+people+in+Paraguay.pdf/df4d8f6d-37d7-4c09-ae33-55ac52bba2cf?t=1517243708000 (7) Jessica Schicks and Richard Rosenberg. 2011. Too Much Microcredit? A Survey of the Evidence on Over-Indebtedness. https://documents1.worldbank.org/curated/zh/553421468148522571/pdf/649800NWP00PUBLIC00Box361550B0OP19.pdf (8) Gobierno del Paraguay. 2014. Plan Nacional de Desarrollo Paraguay 2030. https://www.stp.gov.py/pnd/wp-content/uploads/2014/12/pnd2030.pdf (9) Ministerio de Agricultura y Ganaderia. 2013. Marco estratégico agrario. https://faolex.fao.org/docs/pdf/par179001.pdf (10) Congreso de la nación paraguaya. 2019. Ley No. 6286. https://www.bacn.gov.py/leyes-paraguayas/8898/ley-n-6286-de-defensa-restauracion-y-promocion-de-la-agricultura-familiar-campesina (11) Congreso de la nación paraguaya. 2012. Ley No. 4457. https://www.bacn.gov.py/leyes-paraguayas/8272/ley-n-4457-para-las-micro-pequenas-y-medianas-empresas-mipymes#:~:text=La%20presente%20Ley%20tiene%20por,servicios%2C%20y%20darles%20identidad%20jur%C3%ADdica. (12) International Finance Corporation. 2011. International Finance Institutions and development through private sector. https://www.deginvest.de/DEG-Englische-Dokumente/PDFs-Download-Center/IFI_and_Development_Trough_the_Private_Sector.pdf (13) Agencia Financiera de Desarrollo. S.F. Acerca de la AFD. https://www.afd.gov.py/que-es-la-afd (14) Congreso de la Nación Paraguaya. 1991. LEY Nº: 60/90. https://www.mic.gov.py/mic/w/industria/ddi/pdf/Ley60-90.pdf