INTEGRA FIVE - LATAM DISPATCH
The World Economic Forum reports on how female entrepreneurs are helping feed farmers in Brazil. As the cost-of-living crisis is being felt globally, the state of the post pandemic economy recovery, coupled with climate change impacts and supply chain blockages caused by the war in Ukraine are leading strong reverberations around the world. These entrepreneurs are not only helping feed Latin America but are providing organic farmers with better livelihoods.
Priscilla Veras created Muda Meu Mundo, a Brazilian startup that connects small scale family farmers to big supermarket chains by handling logistics, transportation, and offering credit and technical assistance to help growers boost output. This cuts out the middleman and sends more profits to the farmers, whilst also using less resources whilst increasing crop production.
Papayas, another Brazilian female run startup allows customers at the two largest agro-ecological fairs in the southern state of Rio Grande do Sul state to buy produce from organic and small family farms directly, using an app. Farmers now pay less in banking charges and receive payment in a week, but most often same day. This is a massive improvement on the normal wait time of a month. Additionally, the company has built a customer base by partnering with local firms who provide their own staff with in-app food vouchers.
The Founder Institute (FI), the world’s largest startup accelerator launched in Caracas a year ago, receiving a massive number of applications for its accelerator program. 168 people applied, and nine graduate and eight formalised the launch of their technology company in a hostile and hungry market. E-commerce, marketplaces, edtech and fintech were the most common applications to FI.
Marco Villegas, the director of Arca Análisis Económico and co-director of FI Caracas, talks about the talent found and his gratitude to FI’s presence. Regarding the integration of facilitators in the accelerator programs, he said. “I feel like I’m helping Venezuela a little bit. With all the knowledge they may have and are willing to contribute to the process, and it has been one of the best experiences we have been able to experience. Venezuelans in Google, Meta, Amazon, or in startups that are already here, are supporting the ecosystem.”
FI is currently moving into its third round of courses in in the country and is focused on the strengths of those making proposals as this will allow for greater flexibility to mutate and support the ‘Venezuela Laboratory’, which has the aim of offering solutions.
Venezuela’s oil production remains steady as exports to Europe resume following the easing of some US restrictions. OPEC placed Caracas’ output in May at 717,000 barrels per day (bpd), as measured by secondary sources, 2,000 bpd less than April. The numbers reported directly by Venezuelan state oil company PDVSA stood higher at 735,000 bpd but slightly below the 775,000 bpd from the previous month.
Historically oil sales are Venezuela’s main source of foreign income, but these were blocked by Washington’s sanctions, which were created to cripple the economy and oust Nicolas Maduro. Foreign companies were forced to gradually abandon operations as well as oil agreements with Venezuela following the 2017 financial sanctions against PDVSA, the 2019 oil embargo, subsequent secondary sanctions, and a raft of other measures throughout 2020.
Despite these embargos, Venezuela has improved crude production with assistance from Iran. In September 2021 Tehran and Caracas struck an oil for condensate agreement to dilute PDVSA extra-heavy crude into exportable grades, therefore boosting the industry’s output and exports.
June 10, 2022
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