The co-investment program is inspired by the Business to Business (B2B) model, implemented and financed by the Danish International Development Agency (DANIDA). This program promotes the establishment of sustainable partnerships and long-term and commercially viable agreements between international companies that engage in CSR practices and clusters of Honduran Eco-companies, in order to strengthen and promote their sustainable development and help them access promising international markets.
In this sense, the program provides assistance and funding, creating the groundwork so participating companies can continue with the partnerships even after financial cooperation has stopped, so the project must be based on a commercially viable business.
The main purpose of this assistance is to ensure the transfer of knowledge and technology from the international partners to the local partners, therefore also ensuring their presence in local and international markets.
At the same time, international companies get to acquire new markets and new suppliers, reduce their production costs, and become internationally renowned as socially responsible companies.
Contributing to the reduction of poverty by linking Eco-businesses with social investment companies, as well as with generation of income, jobs and increased sales of products that contribute to the conservation of natural resources.
Promoting long-term, sustainable and commercially viable partnerships between international companies and local enterprises in order to strengthen the local business climate.
The specific objectives of the program are:
- Enhancing the local companies’ competitiveness through linkages with foreign companies.
- Increasing employment opportunities focusing on women and young people.
- Improving working conditions and the environment.
- Promoting CSR: Promoting equal opportunities for women; promoting workers’ rights; promoting good business practices
The B2B program offers assistance for identifying suitable partners as well as for establishing and implementing the partnerships.
This process is divided into three phases:
- Phase I – Designing and researching the Initiative:
- Identifying potential areas for co-investment.
- Identifying eco-business clusters in previously identified co-investment areas.
- Phase II – Developing the Business concept; Pre-feasibility:
- Preparing an investment profile.
- Preparing pre-feasibility plans and projected financial statements.
- Searching for international companies to make co-investments.
- Phase III – Feasibility and Implementation:
- Holding meetings with investors and securing commitments.
- Signing co-investment agreements.
- Preparing feasibility studies.
- Implementing the project.
- Project Selection
- Increasing employment, with special focus on women and young people.
- Improving the environment and work climate.
- Promotion of Corporate Social Responsibility
- Promoting equal opportunity employment for women and young people.
- Promoting human rights and workers’ rights.
- PPromoting good business practices, including fighting corruption.
All collaboration must include the transfer of technology and knowledge from foreign companies to local companies, adapted to the local market conditions and the country’s development through technical assistance and employee training.
- Requirements for local companies
- Business registration and operating permits.
- Local capital or local management.
- Business experience.
- Positive financial results.
- Having matching funds for co-investment.
- Belonging to a sector/category with clear market potential.
- Implementing or willing to implement cleaner production practices.
- Having the potential for increasing productivity and thus increasing income generation.
- Requirements for foreign companies
- Audited financial statements showing positive results over the last three years.
- Capital must represent at least 15% of the assets.
- The company must not be listed as a bad debtor.
- The company must have been in business at least 5 years, with the exception of emerging industries.
- The foreign company must have enough permanent staff to carry out technology transfer processes.
- The company must maintain CSR programs or practices within its policies.