Promoting Economic Development in San Martín, Huanuco and Ucayali

The Economic Development Alliance for San Martín accelerated the transition of the San Martín region of Peru into a sustainable, legal and prosperous economy, increasing employment and incomes while promoting good stewardship of natural resources.

In 2010, TechnoServe partnered with the U.S. Agency for International Development (USAID) in a seven-year initiative to support the Government of Peru’s efforts to transition smallholder farmers from producing coca to cocoa in vulnerable regions of Peru. The Economic Development Alliance for San Martín aimed to accelerate the transition of San Martín, Peru into a sustainable, legal, and prosperous economy, increasing employment and incomes while promoting good stewardship of natural resources.

After three years of successful execution, the program extended its area of focus to the Huanuco and Ucayali regions. In partnership with the U.S. Agency for International USAID, the PIMCO Foundation, the Peru Opportunity Fund, the Weidemann Foundation, World Cocoa Foundation, and other public and private partners, the program promoted good agricultural practices among an expanded geography of cocoa growers. The program also included a business accelerator that identified entrepreneurs with the potential to develop successful businesses related to cocoa.

By developing these industries and linking farmers to better-paying markets, TechnoServe provided farmers with an economically viable transition to licit, prosperous livelihoods. The Alliance assisted more than 28,000 farmers – more than 40 percent of Peru’s cocoa producers – and helped participants to improve their yields by an average of 32 percent, generating more than $45 million in increased revenue and wages.