Investment Risks

Deposit your budget for investment in the future

RISKS

Political Risks

Our projects in Nicaragua and Peru have proved themselves as save investment locations during the past years.

Nicaragua

The stable political situation has given Nicaragua a strong economy as well.

Here is proof positive of that strength: The International Monetary Fund (IMF) has officially made plans to close its office in Nicaragua. They cite Nicaragua’s strong economic growth, which has averaged 4% GDP growth annually over the past decade, as their reasoning for closing their Nicaragua office. The office will be closed officially in August 2016. 

 

Peru

Over the past decade, Peru has been one of the region´s fastest-growing economies, with an average growth rate 5.9% in a context of low inflation (averaging 2.9%). A favorable external environment, prudent macroeconomic policies and structural reforms in different areas combined to create a scenario of high growth and low inflation. (source: Worldbank)

What the media is reporting:

Nicaragua

“The ease of purchasing real estate, tax incentives, low crime and a laid-back lifestyle on a gorgeous stretch of coast make it appealing”   The Los Angeles Times

“Over 40,000 Americans already are turning Nicaragua into the latest retirement and investment hotspot in Central America” Miami Herald

“Nicaragua’s tourism industry is bullish for good reason. The country’s beaches are among the finest in the Americas, and among the least developed. Dozens of volcanic peaks offer treks through rain forests teeming with a rich biodiversity. And large tracts of nature reserves offer an eco-tourist wonderland.” The New York Times

“Forward thinking investors can find some of the greatest deals on earth in this country” MSN Money

Peru:

“Oh adventure….Gigant sand dunes, chiseled peaks and Pacific breaks a few heartbeats away from the capital’s rush-hour traffic: from downtown LIma to smack-dab nowhere, this vast country translates to paradise for the active traveler. All the usual suspects – rafting, paragliding, surfing, zip lines and bike trails – are present. Spot scarlet macaws in the Amazon or catch the sunset over the dusty remnants of an ancient civilization.” The Lonely Planet

“For the past fifteen years, the Peruvian economy has been booming; since the start of the last decade, the country has experienced a healthy dose of GDP growth, which has more than doubled since 2000, coming from a little more than 50 billion Usd in that year, to 200 billion Usd in 2015 GlobalPublicPolicyWatch

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Natural risks

Hurricanes: Hurricanes do on occasion hit the Caribbean coast of Nicaragua; however all of our projects that are offered by AgriForest Finance are in the center of the country, and according to all records available, no hurricane has ever struck any of the areas in which we have established our agroforestry and reforestation projects.

Forest fires: Due to the heavy humidity and moisture in the air, forest fires are not normally a problem in the tropics.  In addition, a 24 hour surveillance is on every project.

The planting of mixed forests and the ecological restoration corridors reduces the risk of fire. The buffer zones also stay green during the dry season and automatically build “flame barriers”.

The primary risks during the first 4 years are infestations with pests or diseases, droughts and fire. For AgriForest Finance products with an investment period of 10 and 25 years, a fire insurance and a replanting guarantee is in place.  From year 4, the trees are sufficiently resistant to any natural risks.

Flooding:  All of the plantations have no history of flood risk. The land has a gentle slope and good drainage.

Pest or diseases: Our pest and disease monitoring ensures early detection of potential problems. In our mixed forests and agroforestry projects have been detected rarely diseases, and these have been successfully combated with organic pesticides.

Investment risk:  Like every investment, also an investment in a mixed-forest or cacao trees could even lead to a complete loss. But that will hit AgriForest Finance hard too. You are partner with us, the farmer. For every acre mixed-forest or cacao sold, we plant the same acreage for ourselves too. So high yields are in our interest also. Our products are investments in growing valuable trees and/or cacao. For this reason, the economic result is not exactly known and can only be forecast by us. Our calculations are very conservative and based on experience. Our products are not recommended to investors who need to to sell their investment at short notice.

However, an investment in a mixed forest with valuable timber or cacao is by nature a rather conservative investment and is linked to real values such as land ownership. Ultimately you are investing in the production of agroforestry products as timber and/or cacao, so in a renewable resource that is much in demand and showing stable rising prices the last decades.