Social impact evaluation using the SROI methodology of small cocoa producers in Ecuador

Title Social impact evaluation using the SROI methodology of the ‘Sustainable Development Programme – Made in Dignity’ in Ecuador
Location Province of Manabì, Ecuador
Duration April – September 2024
Partners Altromercato, Maquita
Funding Altromercato

Context
Among the different Made in Dignity projects implemented by Altromercato, the Sustainable Development Program – conceived together with Loacker and implemented locally by Maquita – aims to foster the economic, environmental and social sustainability of small cocoa producers in the province of Manabì, Ecuador. ARCO – after conducting the need analysis with small-scale cocoa producers living in the local communities at the beginning of 2020 – conducted, at Altromercato’s request, the social impact assessment generated by the programme using the SROI – Social Return On Investment – methodology. The project started in 2020 and plans to conclude its actions in early 2025.

General objective
The evaluative (ex-post) SROI analysis – carried out by Local Development UnitARCO’s research team between May and September 2024 – aims to assess the extent to which the ‘Sustainable Development Program – Made in Dignity’ has contributed to the generation of social impact through the improvement of the economic, environmental and social sustainability of smallholder cocoa producing families and their communities in the Province of Manabì.

What did we do?
The main aim of the analysis was to create a robust framework to assess the social impact of the initiative, based on the SROI methodology. Applying an input-output-outcome-impact model, the social impact of the project was estimated through the active involvement of stakeholders. The participatory activities carried out by ARCO reached 28 stakeholders, including 16 cocoa producers and agricultural promoters from the target communities involved in the project.

SROI index indice social return on investment social impact impatto sociale

The application of the methodology resulted in an SROI of 2.44.
This means that for every 1€ invested, a social and economic return of 2,44€ was generated.

This analysis aims to ensure an accurate and transparent measurement of the social return on investment, providing meaningful data for reporting and future project planning. Through the analysis, ARCO confirmed the project’s ability to generate a positive impact on the stakeholders involved.