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Staple Crops Processing Zone (SCPZ): funding proposal to the Green Climate Fund

Submitted by Trine Tvile on
AAAP upstream status
Sector
AAAP facility upstream
40000
PAC date
MDB board date
Sub-sector
Project stage
Context

The target countries of Democratic Republic of the Congo, Ethiopia, Togo and Zambia are regions experiencing high deforestation, poor agriculture yield and increasing poverty exacerbated by climate change. Across all four countries, climate variability and change has become a major threat to sustainable development. 

As part of efforts to address these challenges, the four countries are implementing national projects to establish Staple Crops Processing Zones: initiatives designed to concentrate agro-processing activities within areas of high agricultural potential to boost productivity and integrate production, processing and marketing of selected commodities. These initiatives are purposely built shared facilities, to enable agricultural producers, processors, aggregators and distributors to operate in the same vicinity to reduce transaction costs and share business development services for increased productivity and competitiveness.

Developing adequate infrastructure (energy, water, roads, ICT) in rural areas of high agricultural potential should attract investments from private agro-industrialists/entrepreneurs to contribute to the economic and social development of rural areas.

GCA Focal Point
Task manager
Project category
Show on front
Off
Investment value
427000000
Example results indicator
Increased resilience and enhanced livelihood of about 55% of highly vulnerable people and communities.
Objectives

The Staple Crops Processing Zone (SCPZ) development program aims to transform agriculture production in regions experiencing high deforestation, poor agriculture yield and increasing poverty exacerbated by climate change, including the target countries of Democratic Republic of the Congo, Ethiopia, Togo and Zambia. 

The specific objectives of SCPZ are: (i) improving access to seed capital through grants and matching grants; (ii) supporting productivity enhancement through introduction of new technologies and agricultural inputs; (iii) improving access to infrastructure by supporting investment; (iv) improving the capacity of producer cooperative through training and TA, especially for targeted women and youth groups; (v) facilitating market linkages throughout-growers’ schemes; and (vi) facilitating on-farm value addition by targeting limited value chains and linking farmers to the supply chain. 

GCF financing is sought to strengthen one of the project components of SCPZ in Democratic Republic of the Congo, Ethiopia, Togo and Zambia.

AAAP added value
  • Through the technical assistance program, AAAPwill accelerate the mobilization of adaptation finance.
Expected Outcomes
  • Increased carbon sinks in soil and above-ground biomass
  • Reduced carbon dioxide/other greenhouse gas emissions from farms due to efficient energy use
  • Increased renewable energy production from biomass, either as a substitute for fossil fuels or as a replacement for burning of fuel wood or crop residues
  • Fewer incidents of bare soils, reduced soil erosion and increased water percolation.
  • Reduced emissions through low-emission energy access and power generation 
  • Reduced emissions due to improved waste management, including by recycling waste and use of waste in biogas systems
  • Reduction of emissions from land use and deforestation, and enhancement of forest carbon stocks.
Expected impacts
  • Increased resilience, including to extreme events such as droughts and floods, and enhanced livelihood of about 55% of highly vulnerable people and communities

  • Increased access to better health and wellbeing, and food and water security to over 100,000 beneficiaries, in addition to provision of alternative sources of energy

  • Increased resilience of ecosystems and ecosystem services in forests and savannas

Start Date
End Date
Fincial instrument
Grant
Loans
Counterpart financing
AAAP Focus Areas
Agriculture
Project Value

USD 427 million:

  • Funding proposal to GCF seeking USD 174.02 million (USD 130.02 million grant and USD 44 million loan)
  • AfDB providing USD 111.2 million (USD 85.2 million loan and USD 26 million grant)
  • Co-financiers:

European Union, USD 10.4 million (grant)

BOAD, USD 17.6 million (loan)

Korea Exim Bank, USD 50 million (loan)

Korea Fund, USD 5 million (grant)

Islamic Development Bank, USD 31 million (loan)

Governments of target countries, USD 28 million (counterpart financing)

Unique identifier
558892

Building resilience for food and nutrition security in the Horn of Africa (BREFONS)

Submitted by Trine Tvile on
Pillars
Regions
AAAP upstream status
Sector
AAAP facility upstream
331914
PAC date
MDB board date
Sub-sector
Project stage
Context

The target countries of this project (Djibouti, Ethiopia, Kenya, Somalia, South Sudan, and Sudan) are located in the arid and semi-arid lands, which comprise more than 70% of the Horn of Africa (HOA) region, receive less than 600 mm of annual rainfall and are characterized by recurrent droughts and unpredictable rainfall patterns. 

Despite the region’s considerable range of natural resources, with their huge potential for wealth and progress, the HOA countries are struggling to cope with their worsening ecological circumstances. Droughts are increasing in severity and frequency and their impacts are exacerbated by advancing desertification, land degradation, global warming, and climate change. These circumstances have created chronic vulnerability in the HOA, with persistent food insecurity, widespread economic hardships, conflicts, and migration. The strategic priorities of countries in the HOA are defined by their urgent need to build resilience to environmental and socio-economic shocks, through investing in sustainable development and optimizing the productivity of their resources.

GCA Focal Point
Task manager
Project category
Project type
Show on front
On
Investment value
210000000
Example results indicator
1.3 million farmers and pastoralists using climate services, e.g. index insurance with a gender focus
Objectives

Through building resilience to climate change, the overall objective of this program is to increasing, on a sustainable and resilient basis, productivity and agro-sylvo-pastoral production in the HOA, increase incomes from agro-sylvo-pastoral value chains and enhance the adaptive capacity of the populations to prepare for and manage climate change risks.

AAAP added value
  • Provide upstream technical assistance to ensure climate smart digital technologies for adaptation and resilience are integrated into the project.
  • Identifying key agriculture adaptation constraints that can be addressed by digital technologies and develop solutions
  • Assessing the conditions and opportunities for digital applications for drought index insurance 
  • Identifying opportunities for digital agricultural adaptation solutions through the preparing of climate risk and digital agriculture profiles 
  • Supporting stakeholders to identify and implement opportunities through the preparation of a digital agricultural adaptation toolkit 
  • Building the capacity of policymakers and enable policy interventions to ensure uptake of digital solutions using the toolkit. 
  • Feasibility studies and assessment on building resilience for food security in Africa; 
  • Feasibility studies to assess integration of adaptation and mitigation measures for the sustainability of nutrition and food security interventions;
  • Quality assurance and advisory services for results and evidence-based planning, management and M&E of the Youth Enterprise Development project interventions
Expected Outcomes

The programme will contribute to improving living conditions, including for women and the youth; improving food and nutrition security; increasing resilience; and peace and security in the HOA. Specifically it will: 

  • Productivity (crops and livestock) increased by 30%
  • 50% increase in digital literacy for actors across value chains, of which 80% are women and youth
  • 30% de-risked credit as a result of use of Digital Climate Advisory Services and Digital Financial Services
  • 30% increase in use of index insurance products by smallholders across target value chains
  • 55,000 additional jobs created (primarily for women and youth)
Expected impacts
  • 1.3 million farmers and pastoralists in the six countries use climate services (e.g. index insurance with a gender focus), allowing them to benefit from:

- Increased productivity and agro-sylvo-pastoral production in the Horn of Africa, on a sustainable and resilient basis

- Increased incomes (by 40%) from agro-sylvo-pastoral value chains

  • More broadly, the population of the Horn of Africa have enhanced adaptive capacity to better prepare for and manage climate change risks and variation.

 

Start Date
End Date
Fincial instrument
Loans
Grant
AAAP Focus Areas
Agriculture
Project Value

USD 210 million

Unique identifier
220559

Programme for Integrated Development and Adaptation to Climate Change in the Zambezi River Basin (PIDACC Zambezi)

Submitted by Trine Tvile on
Pillars
AAAP upstream status
Sector
AAAP facility upstream
417937
PAC date
MDB board date
Sub-sector
Project stage
Context

Zambezi River Basin, in Southern Africa Region, has the largest drainage basin (1.4 million km2) with rich variety of natural resources, covering parts of eight riparian states namely Angola, Botswana, Malawi, Mozambique, Namibia, Tanzania, Zambia, and Zimbabwe. Despite this potential, riparian states are struggling to cope up with worsening ecological circumstances, environmental degradation, global warming, and climate change, which have created conditions of chronic vulnerability, food insecurity, and economic hardships

GCA Focal Point
Task manager
Project category
Project type
Show on front
On
Investment value
150000000
Example results indicator
Reinforced inclusive and diversified climate resilient livelihoods support through enhanced agribusiness and small & medium enterprises (SME) development
Objectives

The objective of the project is to strengthen regional cooperation in building the resilience of the Zambezi River Basin communities to climatic and economic shocks, through promoting inclusive,  transformative investments, job-creation, and ecosystem-based solutions.

AAAP added value
  • Identified climatic risks to major agricultural value chains and digital technologies that have the potential to accelerate climate adaptation in the Zambezi River Basin
  • Prepared national profiles on digital adaptation in agriculture for the various countries of the Zambezi River Basin, a summary of the prevalent adaptation techniques among smallholder farmers, and the key institutional, policy and human capital challenges to digitization
  • Actionable design and engagement opportunities, which will mainstream digital climate advisory services into the implementation of the PIDACC program
Expected Outcomes
  • Benefit  about  800,000 (60% women and 10% youth) within hotspot areas, and indirectly the whole population
  • Improved access to water, climate smart agricultural technologies, and community-level  infrastructure for irrigation and markets
  • Associated benefits include multi-sectoral utilization of  shared  water  resources  within  the  context  of  integrated  land  and  water  resources development and management, gender equality and social inclusion
Expected impacts
  • Strengthened institutional capacities and mechanisms for coordination of Basin monitoring,   planning, and management
  • Increased demand-driven community-level feasible climate resilient infrastructure that  would  support  livelihoods
  • Reinforced inclusive and diversified climate resilient livelihoods support through enhanced agribusiness and small & medium enterprises (SME) development
  • Developed and improved livelihoods, including job creation by enhancing agribusiness through investments in water, sanitation, energy, human capital, and agriculture sectors
  • Support adaptive capacity of communities with a view to avoid, reduce and reverse land degradation and effectively manage water
Start Date
End Date
Fincial instrument
Loans
Grant
AAAP Focus Areas
Agriculture
Food Security
Project Value

AfDB Investment of USD16.7 million of total USD19.4 Million

Unique identifier
294725