Every day, San Pedro Sula, Honduras, generates about 1,000 tons of waste. Yet only a fraction is recycled, leaving valuable materials lost to disposal streams and waterways.
That’s why Beneficial Returns is excited to support Recyproco, a recycling social enterprise helping build a stronger circular economy in Honduras.
Recyproco purchases recyclable materials from waste pickers, businesses, and institutions, then sorts, processes, and sells them to domestic and international recycling markets. Through this work, the enterprise helps keep valuable materials in circulation while creating income opportunities for the people who collect and supply recyclables.
Today, Recyproco works with hundreds of recyclers and processes nearly 2,000 tons of material annually, including cardboard, paper, plastics, glass, and metals. As the business grows, it expects to expand its recycler network, creating additional economic opportunities while helping divert more waste from landfills and waterways.
Beneficial Returns recently provided an $88,000 loan to help Recyproco acquire new processing equipment that will more than double its daily capacity. With this investment, the company expects to increase the volume of recyclable materials it can recover while expanding opportunities for the waste pickers and recyclers who supply those materials.
The loan also marks Beneficial Returns’ first investment in Honduras, enabling us to support a mission-driven enterprise that addresses both environmental and economic challenges in a new market.
Why the Right Capital Matters
Recyproco’s growth highlights an important aspect of impact investing: providing the right type of capital at the right time. Many social enterprises don’t fit the traditional venture capital model. They may be creating significant social and environmental value, but they often need patient, appropriately structured financing rather than equity investment designed for rapid exits and outsized returns.
This idea was recently explored by Haverford College professor Shannon Mudd in his article, When Impact Investing Education Outgrows VC. Mudd highlights Beneficial Returns as an example of an alternative financing approach that helps social enterprises access the capital they need while allowing investors to recycle repaid funds into new impact opportunities.
We are proud to support Recyproco as it expands recycling opportunities, strengthens local livelihoods, and helps build a more sustainable future in Honduras.