Bags of potential: An indigenous community in Colombia is transforming their traditional bags into high-value, marketable products.

Thanks to help from the Peace Dividend Initiative, a leading Spanish-language online sales platform, is retailing craft bags made high in the mountains of northern Colombia.

The arrival of the mochilas on the GoTrendier platform has been featured in an article in the leading Colombian daily El Pais viewed online more than 2.3 million times. It is the first time that Kogui women involved in the project have ever sold their products beyond the boundaries of their village.

GoTrendier is a platform and app for buying and selling sustainable fashion. Started in Mexico in 2016, it opened in Colombia a year later and now has 12 million registered users.

The platform featured more than 20 Kogui bags in a variety of colours and styles produced by 12 families in the Sierra Nevada de Santa Marta mountain range. All are made from fique, a natural fibre that grows in the leaves of plants in the genus Furcraea, and use only natural colorants extracted from regional plants.

Gotrendier closet

Prior to the Peace Dividend Initiative’s involvement with the Kogui, the community only sold approximately 25 bags a month to visitors, creating only minimal profits from a production time of 200 hours per bag.

PDI realised that with small adjustments in their designs and improvements in sewing techniques, their mochilas – which are worn on one shoulder or across the chest – had the potential to sell well in much wider markets.

After PDI’s project began in 2024, the bags were refined through a design workshop conducted by an experienced designer, making them more appealing for the
modern market while keeping their cultural essence intact.

A direct online sales channel was developed through social media platforms, such as Instagram (@mochilaskoguila), and WhatsApp, enabling the community to
connect with customers directly and more efficiently. Investment was put in branding, Meta ads and digital marketing, which helped growing the bags’ online presence. The connection to GoTrendier came through this activity.

A major growing region of the coca plant, the Sierra Nevada de Santa Marta saw years of conflict between the military and armed groups linked to the illegal drugs trade. The armed groups maintain some presence though conditions are generally much more stable now and tourism is constantly growing.

The Kogui and the area’s other indigenous groups, who have lived in the mountains for thousands of years, need support to raise their income, protect their communities and environment, and show rest of the world that their traditions and culture should be respected and can be preserved.

As Ana Jiménez, country manager of GoTrendier, told El Pais: “Purchasing a Kogui bag is an act of direct support for the preservation of an ancestral culture and the protection of ecosystems vital to the planet.”

 

Kogui mochilas

 

Hives of hope: how beekeepers displaced by Ukraine’s conflict are rebuilding their livelihoods

Peace Dividend Initiative is supporting internally displaced beekeepers from Ukraine’s Luhansk region to revitalise and expand their business in the safety of the country’s western mountains.

The Carpathian Mountains are famed for their exquisite honey, with its special flavours drawn from a diverse flora and a beekeeping tradition that goes back through the centuries.

Now a Ukrainian region of the mountains is becoming known for something very different: as a source of resilience and collaboration during conflict.

When war broke out in 2022, a group of beekeepers in Luhansk in the country’s east found themselves near the frontlines. With their lives in danger, and their hives lost or damaged, their only option was to flee.

Igor Kovtunenko, who had produced organic honey in Luhansk for 15 years, was offered a lifeline by a beekeeping friend from Velikiy Rozhen village on the other side of the country in the Ivano-Frankivsk region of the Carpathians, who invited him and his family to move there.

“It was and still is a safer place to live, so I hit the road leaving my hives and home behind and hoping to restart my business,” says Igor, who is the third generation of beekeepers in his family.

Several fellow displaced beekeepers from Luhansk made the same journey and were helped by their contemporaries in the west with equipment, bees for breeding and land for their apiaries. Within months they had registered as a new cooperative.

Their story is captured in a video which tells how with support from the Peace Dividend Initiative (PDI) in late 2022 launched a project to increase honey production levels from the current annual one ton (about 2,000 jars) and support their efforts to export the ‘Hike Hive’ product to Europe.

 

 

The project will aim first at high-end retailers in EU and Switzerland, who it is hoped will be attracted by the honey’s unusual packaging in beeswax jars.

It is also laying the groundwork for long-term social cohesion in the post-war Ukraine.

Ivan Saschuk, one of the Carpathian beekeepers at the heart of the cooperative, says: “We share our knowledge with beekeepers from the east, and they teach us ‘the Luhansk way’. We all cooperate together. For all of us, beekeeping isn’t just a profession, it’s a way of life.”

 

Liberia’s peace chocolate means business

How a rural women’s cooperative in a former conflict zone formed the heart of a new business partnership.

During Liberia’s long civil war Lofa County was synonymous with inter-ethnic rivalry and violence. As thousands of people fled across the border to Guinea or Sierra Leone, or were displaced internally, farms were abandoned or taken over by warlords.

Women entrepreneurs at the Komassa Vornambeh (KV) cooperative now want those same farms to become known for something previously unthinkable: high quality organic chocolate.

A nationwide peace may have been established more than 20 years ago, but in the northern Lofa County – and elsewhere – it remains fragile, with tensions not far beneath the surface. Economic advances have been limited, and women and youth in particular feel excluded from any sense of national progress.

Peace Dividend Initiative (PDI) therefore sought to create a project that would both sustain Liberia’s peace and promote local economic empowerment.

Using a traditional crop – cocoa beans – combined with sustainable farming methods and the marketing of a new product, the Peace Chocolate Project was designed to add value to Liberia’s economic activity, which is weak across the board.

“If projects such as this are successful, then they could have a knock-on effect and be emulated in other parts of the country. It’s a small initial contribution, but the logic is strong for Liberia,” explained Paul Dziatkowiec, senior advisor, peace operations at PDI.

The pilot project, also named the Wologizi Chocolate project, was a partnership between KV, which grew the cocoa beans, the Liberia Cocoa Corporation (LCC), which provided technical assistance and produced the chocolate in Monrovia, PDI, and the UN Development Programme and Food and Agriculture Organisation.

It produced bars of 70% high grade organic chocolate, presented in custom-made packaging. Launched at events in Lofa and Monrovia, the 45g bars were put on sale at the Flower Pot store and soon sold out.

It was a remarkable achievement considering that previously the KV cocoa growers hadn’t even been aware that their crop could be transformed into chocolate.

“This was a big change for them, because before they just picked the beans, dried them on the ground, bagged them and sold them to a buyer,” said Dorothy Toomann, PDI’s country project officer.

All 58 people who took part in the project – 37 women from KV and 20 next generation cocoa farmers from nearby districts – had been involved with growing cocoa beans most of their lives. But their roles had primarily been supportive – to their parents, or their husbands.

The women were very receptive to organic farming, quickly understanding that it would generate more income and that not using chemicals was beneficial to them and their communities.

LCC, which specializes in organic production, trained the women in various elements of organic cocoa farming, including pruning and shade management, disease and pest control, drying and storage. It arranged the certifying of their crops as organic by Kiwa, one of the leading global certification bodies.

KV was closely involved in discussions with LCC and PDI and different designers on branding. There was a clear favourite for the name: Wologizi, named after the mountain range and peak in Lofa County which is also Liberia’s highest.

“The women said the peak captured the past, present and future of the county. They wanted a name that would resonate with people,” explained Dorothy.

The cocoa beans were transported to Monrovia where the bars were produced by LCC. The long-term hope is to produce the chocolate in the community and to sell in other parts of Liberia and perhaps one day abroad. But first, more investment is needed to support continued organic farming and to find a regular buyer for their beans.

As Komassa Kennah, group leader of KV, told Liberian government officials, UN agency officials and senior representatives from civil society at the Monrovia launch:

“We would like to say to the government that this initiative is something that needs to be commended. We need you all to work alongside us to make this a success.

“This is not only about Lofa County. Every part of Liberia needs to embrace this idea. It is good to have this economic empowerment opportunity for women.”

Komassa Vornambeh Group in Lofa, Liberia, December 2022, Dorothy Toomann.

 

Launch ceremony in Monrovia Liberia Chocolate bars
Wologizi chocolates at the Peace Chocolate launch ceremony in Monrovia, Liberia, April 2024, Joma Visuals.

 

Lu Tolbert, CEO of Liberia Cocoa Corporation, speaking at the Peace Chocolate launch ceremony in Monrovia, Liberia, April 2024, Joma Visuals.

 

The Business of (and for) Peace

Reflections from the World Economic Forum Annual Meeting January 2024, held under the theme: Rebuilding Trust. 

Liam Foran, CEO, Peace Dividend Initiative speaks about the need for peace-supporting investments during the Annual Meeting of the World Economic Forum.

A better calibration of entrepreneurs, businesses, and investors in frontier markets can help shake off the doom and gloom of global fragility and build a safer world.

Although conflict is on the rise, at the grassroots in many countries bearing the brunt of violence there is a surprising amount of hope, resilience, and entrepreneurship.

Decades of international development spending on skills and education combined with the global reach of value chains has lifted billions out of poverty. Internet and smart phones have further accelerated this process creating a generation of “micro-multinationals” – small to medium sized businesses hungry to participate in the global economy.

But the success of co-opting much of the world into economic aspiration has a dark side, if these aspirations go unfulfilled, or entrepreneurs are restricted from participating in the market, conflicts can spark.

One of the big problems we discussed this week is that entrepreneurs in conflict zones lack access to capital, global business networks and markets. Current economic mechanisms designed to stabilise conflict zones provide little long-term employment and resulting stability.

Aid is not an investment tool, and donor funds are notoriously bad at job creation. Livelihood projects promoted by development agencies are often too small to help entrepreneurs build big enough businesses to exert a stabilizing influence on their surroundings.

Large pools of capital in development finance institutions are designed to build big things like roads, airports or agro-industrial businesses, and struggle to transact deals less than $20m in size.

In our experience the real impact is in smaller deals, between $500k and $5m. This is where talented local entrepreneurs are building businesses that exert stability in fragile communities. Creating employment and income growth that provide powerful economic incentives for communities to move away from violence and towards peace.

The precursor elements have all been built, but the mechanisms to connect aspirational entrepreneurs working in fragile countries to investors are not functioning properly. So, there is a missing middle, and this represents a huge opportunity.

The Peace Dividend Initiative’s response is to bring venture capital models to places underserved by investors. Focusing on building incubation pipelines and then investing in deal sizes between $500k and $5m through our Peace Venture Fund (PVF) mechanism.

But PDI is just one small emerging actor, the real gamechanger to make the world more stable, would be for private sector actors to begin engaging coherently in peacemaking.

There are countless examples of where the private sector has been able to support and secure long-term peace; from the reconstruction of Europe after the World Wars to foreign direct investment in Northern Ireland to tackling Kenyan election violence, when the private sector acts in concert with peacemakers, the results can be impressive.

Shockingly at a time when conflict is on the rise, both public and private investment in peacemaking is at historic lows – with the most underinvested Sustainable Development Goal (SDG) being number 16 – whose goal is to “Promote just, peaceful and inclusive societies.”

The last few years have been a stark reminder that a clear business case to invest in peace exists. With attacks in the Suez Canal shipping area contributing to global inflation, the war in Ukraine affecting food prices around the world, and the cost of crude rocketing due to conflict in the Middle East.

In response PDI has been engaging business leaders at this year’s World Economic Forum to discuss how the private sector can respond to the alarming re-emergence of conflict. There is a serious willingness to engage, probably the most serious in decades as business feel the tangible impact of war on their balance sheets.

But what can businesses do to support global peacemaking?

We suggest three clear actions.

  1. Participate in Economic dialogues in support of peace.
    • There are currently about 30 active major peace process taking place, led by a constellation of states, UN agencies and private peace mediators. These overwhelmingly involve political actors. We must include more economic actors at the early stages in these processes and develop economic plans to support and secure the ceasefires and peace agreements negotiated.
  1. Incubation of peace supporting businesses in conflict affected areas.
    • There are entrepreneurs in every corner of the planet, with good ideas and a willingness to work hard to leap out of poverty and fragility. Much reporting on conflict zones focuses on the grim aspects, and this misses the many inspiring and resilient people on the ground, who have remarkable courage in building businesses in the face of so much adversity. They are not looking for handouts but guidance in developing their products and services and the chance to compete fairly in the market. They need private sector partners to help them get started and scale.
  1. Peace supporting investments.
    • Impact investing is making serious gains in areas like sustainability, education, and housing. But there is no major effort yet to channel private capital towards helping secure long term and sustainable peace. But it is coming, we, along with several other actors have developed the +P framework to guide investors towards securing peace outcomes. It can be as simple as investing in businesses that employ former combatants or employ former adversaries to work in the same team.
    • We are also aiming to raise $100m for our Peace Venture Fund (PVF) in 2024 and deploy this capital to grow businesses in conflict affected areas.

We are looking for partners to help scale this work.

If you would like more information or have an idea for where we might work together, please contact us.

 

 

 

 

 

Charting a Course for Peace-Impact Investing

For the United Nations (UN), the year 2020 marked the beginning of a new era of conflict and violence, characterized by a proliferation of entrenched conflicts among non-state actors, an ever-present threat of terrorism, and soaring rates of urban, domestic, and gender-based violence. Since the release of the 2020 report, the gravity of these trends has been compounded by Russia’s invasion of Ukraine, and by growing geo-economic competition globally between democratic and autocratic states. More than ever, the time is right to invest in peace. And yet, peacebuilding and peace mediation budgets remain chronically underfunded, fragmented, and heavily reliant on scarce public funds. In response to these troubling features of the international landscape, UN Secretary-General Antonio Guterres urgently called for a deeper investment into peace and peacebuilding in his March 2022 report to the UN Peacebuilding Commission.

The emergent field of peace finance is a response to this imperative. The early proponents of peace finance have focused mostly on new financing mechanisms to catalyse additional private funding towards peacebuilding, tying the success of peace-building efforts to the improved risk-profile of proposed investments. Advocates of peace finance point out that the risk of investment decreases as the level of conflict decreases, and that investing in peace mediation or peacebuilding offers an effective way of de-risking project finance, ultimately increasing the return on investment.

However, there are significant hazards hidden in these ‘peace finance’ or ‘private sector development’ waters. Simply increasing funding for peacemaking while increasing the flow of private capital into conflict-affected areas will not be sufficient. Analysis across multiple sectors has shown that large-scale investments sometimes have a tendency to exacerbate conflict, and even well-intentioned and carefully targeted investments can produce unwanted effects if delivered in a ‘set-and-forget’ manner following the initial due-diligence phase. The reputational risk of merely token efforts towards peace-impact investing will be evident to readers familiar with the ‘green-washing’ of supposedly sustainable investments, and the resulting challenges confronting the ESG impact investment agenda.

Rather than simply ‘throwing money at the problem of conflict’, investors and financiers seeking to create an impact for peace must consider how to understand and address the systemic roots of conflict, and how to remain adaptive over an entire investment life-cycle, in response to highly dynamic and complex conflict settings.

Organisations such as the Peace Dividend Initiative (PDI) have been leading the charge in creating innovative and field-tested ways to design and deliver peace-supporting investment, ultimately seeking to harness market forces for peace. PDI pursues this aim by addressing three strategic questions when designing and delivering peace-supporting investments in conflict-affected areas:

  1. Can the prospect of private investment create fresh opportunities for peace dialogues at the local or state level?
  2. Can innovative approaches to SME business incubation help promote peace-supporting livelihoods and networks?
  3. Can private investment help accelerate and establish sustainable economic incentives in favor of peace for private, public and community actors?

PDI works by aligning key public and private sector actors on cutting-edge peace-supporting investment innovations and approaches. The Peace Venture Fund (PVF), a dedicated investment fund currently incubated within PDI whose work spans a wide range of fragile and at-risk (FAR) countries, exemplifies this groundbreaking cross-sectoral approach to investing in peace.

PDI’s groundbreaking work in promoting peace-supporting investment is sorely needed: SDG 16 (Peace, Justice, and Strong Institutions) remains one of the most underfunded Sustainable Development Goals.  One key reason for this is likely the lack of understanding to date around what constitutes ‘peace impact’. What does it mean to invest in peace? How do we integrate a peace lens into the investment lifecycle? In many ways, the current state of the peace finance landscape is not dissimilar to the situation when Environmental, Social, and Governance (ESG) was first coined as a concept in 2005. Indeed, there was little understanding and limited adoption of ESG as a concept till the release of the UN Principles for Responsible Investment (PRI) report in 2006 which explicitly discussed the incorporation of ESG criteria into investment analyses and decision-making processes. In 2006, about USD 6.5 trillion in assets under management were associated with formal ESG commitments made by signatories to the PRI. By 2019, this figure had exploded to over USD 80 trillion.

Here, we present an important first step towards a more concrete understanding of what it means to design and deliver peace-supporting investment or ‘peace-impact’. Work on the +P framework, initiated by PDI since 2018, has generated a set of guidelines and recommendations for integrating peace impact as a core consideration in each stage of the investment lifecycle, from due diligence to exit. Much like the initial groundwork that was laid by the UN Global Compact Report and the Freshfield Report, the ambition of the +P framework is to act as a springboard for further and more in-depth discussion on peace-impact, or +P investing.

The +P framework has its roots in best practice learnings from leading peace mediation and peacebuilding organisations, and can be applied to a range of macro (conflict-level) and micro (firm-level) contexts. Its name, the +P, indicates its intended coherence and usability alongside other existing ESG and impact-measurement approaches.

+P framework © Peace Dividend Initiative

 

The +P framework is intended to mobilise investment in support of peace by addressing the social, economic, and political drivers of violent conflict. This evidently requires a close knowledge of local conflict dynamics, and the +P criteria would allow investors to receive guidance from trusted peace-making partners, ensuring that the investment remains authentically peace-supporting. The +P framework also leaves room for the development of specific key performance indicators (KPIs) and more detailed and context-specific criteria, metrics and sub-metrics to track and measure peace impact at a firm- and portfolio-level. They are highly adaptable, based on the needs of the investor seeking to adopt a +P lens in their investment approach, and the availability of data fit for quantitative analysis and machine learning.

Charting the arc of the ESG’s phenomenal cross-industry adoption, the hope is for these guidelines to jumpstart the discussion around +P investing, and to guide the efforts of first-movers and innovators committed to a sustainable future for peace.

In 2023-24, PDI will be working iteratively with leading peacemakers, investors, researchers, and grassroots entrepreneurs in fragile and at-risk areas to pilot and adapt this initial framework, and to develop peace-positive investment guidelines, criteria and indicators. We welcome new partnerships in deepening and broadening this work.

 


by Dr. Ian Wadley, Founding team member and Executive Advisor and Rosalind Tan, Advisor, Venture Investment, PDI, with thanks to Dr. Achim Wennmann, Executive Advisor for Research and Insights, PDI, for his feedback.

 

Photo by Nataliya Vaitkevich on Pexels.

Jungle of Peace: How a chocolate business run by ex-FARC fighters is delivering economic dividends to communities in Colombia

Para leer la versión en español, por favor siga este enlace.

For many years, Asdrúbal and Segundo lived and fought in the rugged jungles of southwestern Colombia as members of the FARC guerrilla group at war with the state.

Now, in those same jungles around Meta and Tumaco, they are turning cocoa beans into gourmet chocolate bars to create livelihoods for their communities and heal the wounds of the past as Colombia seeks to build on the 2016 peace deal ending five decades of conflict that killed 260,000 people.

Under the brand Manigua de Paz (Jungle of Peace), the project brings together nearly 100 former combatants of the Fuerzas Armadas Revolucionarias de Colombia (FARC) across two sprawling cocoa cooperatives. The two areas are among the most vulnerable in Colombia and remain dangerous with the presence of various armed groups.

“The hands of the ex-guerrillas are not only made to use weapons but also to work on something very special like cacao, which for us is love, life and peace,” said Segundo, who is part of the Nueva Esperanza del Pacífico cooperative in the coastal city of Tumaco. “That gives us the capacity to generate future employment for the communities and to leave a legacy for our children.”

The cooperatives control every step of the process – from growing the beans to overseeing production of four varieties of chocolate made with 70% cacao. The packaging was designed by the communities themselves with images and colours that represent their culture and environment.

“We were involved in a military track and now we have moved on and live a totally democratic life,” said Asdrúbal, from the Judío Errante cooperative in Meta. “We put down our weapons and we are thinking about different things, such as looking for a way to live with dignity and economic sustainability.”

The bean-to-bar business – incubated by the Centre for Humanitarian Dialogue (HD) and the Peace Dividend Initiative (PDI) since 2020 – has big plans for its organic chocolate.

The bars are already sold directly by the cooperatives but Manigua de Paz aims to start expanding into retail outlets in Colombia this year to reach a potential market of 52 million residents and the 4 million tourists who visit each year. Online sales and a push into Europe are also in the plans.

“From humble beginnings, Manigua de Paz is a clear and encouraging sign of success in harnessing market forces for peace in Colombia’s still fragile environment,” said Judyta Wasowska, HD’s regional director for Latin America and the chair of PDI.

“It helps to connect the promise of peace with sustainable income and foster trust among communities – with an economic dialogue – so they can move beyond many years of conflict with real opportunities for cooperation and development.”

On top of the livelihood dividends, the project aims to change negative perceptions around former FARC combatants, to reduce the risk of them returning to violence and – by enhancing investment in the region – to transform the one-sided narrative around Colombia and its conflicts.

“Creating a viable business in Meta and Tumaco is a testament to the hard work the communities have done and the risks they’ve taken,” said Liam Foran, the chief executive officer of PDI.

“Just as Manigua de Paz is adding value by making finished chocolate from cacao, it’s also shifting the narrative and perceptions from generations of conflict into sustainable and ethical businesses that will help to lock in long-term peace for Colombia. Together with our mediation partners, this successful project gives us confidence about expanding our innovative approach to other areas of the country.”

 

 


Produced by HD and PDI, 2023

Video credit: Gianni Camporota