CASA African Investment Summit at AGRF / Deal Room 2022 (in-person)
Tipping the balance: Opportunities in climate adaptation for African smallholder farmers and SMEs
Currently 95% of climate finance is supplied by public sources and allocated towards low-hanging fruit to mitigate climate change. To get beyond the low-hanging fruit the world will have to consider smaller investment opportunities that, in aggregate, can significantly adapt to climate change in Africa. If no action is taken, climate impacts in Africa will lead to overall yield reductions of up to 30% by 2050, while extreme weather events will result in higher post-harvest quality and quantity losses.
This session explored how to effectively attract more funding to the agri-SME sector to achieve this aim while managing the risks.
Briefing document: Tipping the balance: Opportunities in climate adaptation for African smallholder farmers and SMEs
For more information on the session, read below:
Key takeaways from the panel discussion included the need to:
- Focus on how to get agribusinesses in Africa to the table to talk about investing in adaptation, they need to invest in adaptation first and cannot look for other options such as moving into another geography
- Invest in the nexus of agriculture and energy or transport as can be a way to tackling both adaptation and mitigation.
- Acknowledge, there is a limited pipeline of investable agribusinesses. Could data help us aggregate pipelines of investable opportunities?
- Remember that feasibility studies for technologies is context specific.
- Weigh up affordability vs availability when planning to push innovations and make them affordable for the customer, remembering the need for a clear business case for the farmers
- Focus on de-risking investments in adaptation for private investors using donor funds and development finance initiatives (DFIs)
- Understand investors and concessional finance providers don’t classify their investments as mitigation and/or adaptation, as they understand that these terms are interconnected
- Be aware that even donors don’t always know exactly how much they invest in adaptation
- Provide technical assistance to locally-led agri-SMEs, if they are accessing climate-smart agriculture technologies, to be able to evaluate their impact
- Improve the metrics for measuring the impact of climate investment in adaptation and mitigation to avoid being accused of greenwashing.
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