AAAP in the Media
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Climate risk regulation in Africa’s financial sector and related private sector initiatives
Extreme weather phenomena such as rising temperatures and the increasing frequency of droughts and floods are affecting lives and livelihoods in Africa. According to the Global Climate Risk Index 2021,1 five African countries ranked among the 10 countries most affected by extreme weather in 2019: Mozambique (first), Zimbabwe (second), Malawi (fifth), South Sudan (eighth), and Niger (ninth).
Direct Access Modality to access the Green Climate Fund
Africa is under-served by adaptation finance. Africa received USD 7.9 billion of an annual average of USD 46 billion in adaptation finance for 2019 and 2020. There is a large disparity between climate finance pledged, finance approved, and finance disbursed by the multilateral climate funds. As of January 2022, only 9.23% of global climate financing was earmarked for sub-Saharan Africa for adaptation purposes. Almost one third of the Green Climate Fund’s (GCF's) Direct Access Entities (DAEs) are in Africa, but only 11 out of 54 countries have at least one national accredited entity. DAEs are only accredited for projects with budgets below USD 50 million and are therefore limited in their ability to access funding for larger projects.
This project will develop a concept note as a starting point for a full funding proposal to the GCF. To achieve this, actions will include a desk review of national climate-related development strategies and reference documents in the target country; identification of a promising project idea, in close collaboration with relevant stakeholders; and facilitation of a consultative workshop to discuss the project’s rationale, main intervention areas and implementation arrangements.
Through the Technical Assistance Program (TAP), the Global Center on Adaptation (GCA) will accelerate the mobilization of adaptation finance. Through the direct access modality, GCA will enhance local capacity to formulate robust concept notes for funding consideration by the Green Climate Fund.
AAAP will support the climate risk assessment studies requested by the GCF.
- Four robust project/program concept notes and pipeline developed, for Burkina Faso, Democratic Republic of Congo, Niger and Nigeria.
- For the Democratic Republic of Congo, new sources of climate finance for adaptation and resilience investments identified.
- Development of a roadmap with key actions to prepare the full funding proposal, including the necessary complementary studies, the evaluation of the cost of these studies and the cost of the full funding proposal.
- Relevant initiatives or projects planned or underway and implemented in the project intervention areas
- Development of a portfolio of paradigm-shifting adaptation projects and programs, i.e., development of concept notes, supporting and enhancing funding proposals.
- Building capacities for adaptation finance planning, mobilization and implementation, i.e., Climate Public Expenditure Reviews.
- Direct Access strengthening with the aim to diversify and to increase the delivery channels, i.e., New Accreditation and Accreditation upgrades.
DRC: USD 58.75 million
Burkina Faso: USD 40 million
Niger: USD 50 million
Nigeria: USD 50 million
Total: USD 198.75 million
20 young African entrepreneurs bag $100,000 each to boost their climate adaptation businesses
African Development Bank-funded enterprise produces affordable, healthier vegetables using urban rooftop hydroponics
Africa is highly vulnerable to climate change, and its impacts—flooding, droughts, cyclones, sea-level rise-- are already driving shifts in how Africans grow food, live, and earn their livelihoods.
Yet, most of the climate funding for the continent goes toward climate mitigation rather than adaptation. This is a problem, partly because adaptation creates well-paying jobs and diversifies economies, strengthening societal resilience. Agriculture is one sector where adaptation promises immense potential.
For example, Soupah Kitchen & Grocery Technology Company, a woman-led agribusiness based in Ibadan, Nigeria, is unlocking innovative solutions to climate change to advance the continent’s energy transition.
With support from the African Development Bank, the Global Centre on Adaptation, and its Africa Adaptation Acceleration Program (AAAP), Soupah Kitchen uses resource-smart technology to control the environment for growing lettuce, kale, leafy green, and herbs. The start-up produces cheaper and healthier vegetables through hydroponics on Ibadan rooftops than those grown on rural farms.
Ifeloluwa Olatayo, Soupah Kitchen’s CEO, was among 15 winners of the 2021 African Youth Adaptation (YouthADAPT) Solutions Challenge organized by the AAAP, a joint initiative of the African Development Bank and the Global Center on Adaptation.
Olatayo said, “Our resource-smart technology is designed to grow up to three tonnes of fresh food within a 650 square-meter area. It will enhance the urban landscape and improve the air quality in our cities.”
She added that Soupah Kitchen farms could sustainably plant with 95% less water than traditional farms without chemical fertilizers. Yields from the company’s farm are 30% larger than those of conventional farms and are produced in half the time.
Using vertical hydroponic technology, Soupah Kitchen can cultivate 1,600kg of vegetables within a 26-day cycle.
A desire to expand her business and impact led Olatayo to apply for the YouthADAPT program.
“With the YouthADAPT opportunity, my enterprise received funding of $100,000. This has been enormously helpful, and the investment made thus far in our implementation plan has had a demonstrable impact in strengthening our climate-conscious mission. The one-year accelerator program has enabled me to learn about the best financing options to scale our impact,” Olatayo said.
Soupah Kitchen plans to tap into blockchain technology to replicate and scale up the technology in other African countries.
In addition to the YouthADAPT funding, Soupah Kitchen received €10,000 from the Netherlands Embassy in Nigeria as a Food Connection Challenge Winner.
In recognition of the private sector’s critical role in closing financing gaps for green growth and building climate resilience, the African Development Bank Group has chosen as the theme for its 2023 Annual Meetings, Mobilizing Private Sector Financing for Climate and Green Growth in Africa.
The Annual Meetings will take place from 22 to 26 May in Sharm El Sheikh, Egypt.
Click here to learn more.
Winners of the 2021 YouthADAPT Challenge acquire skills to accelerate climate adaptation innovation and create green jobs
Winners of the Africa Adaptation Acceleration Program’s 2021 YouthADAPT Challenge have received training to equip them to produce and scale climate-related innovation and create green jobs.
The challenge competition awards business grants of up to $100,000 to young entrepreneurs and micro, small, and medium-sized enterprises in Africa to develop innovative solutions on climate adaptation and resilience.
During the three-day workshop, the 2021 winners – 10 representatives of enterprises from Ghana, Nigeria, Cameroon, Kenya and Zambia – received training in financial management and fundraising. Winning enterprises also received training on budgeting and cash flow projection, record keeping, and executing solid business plans.
The 10 entities are developing solutions in critical social and economic sectors affected by climate change, including agriculture; waste management; water resources and sanitation; renewable energy and energy efficiency; waste management and ecosystem restoration. Half of the enterprises are women-led businesses.
The training also instructed participants in how to position their enterprises in the market in order to offer an attractive funding proposition.
Ifeoluwa Olatayo of Soupah Farms-en-market in Nigeria, said she learned a lot during the training, including “how best to review the company’s finances and budget against unexpected shortfalls.”
Another participant, Juveline Ngum Ngwa of Mumita Holdings Limited in Cameroon, acknowledged the importance of budgeting in her enterprise’s overall success and security. “It allows us to better understand whether our business has enough revenue to pay its expenses,” Ngum Ngwa said.
Carolyne Mukuhi of Kimplanter Seedlings in Kenya said: “We look forward to this great journey towards a successful, impactful climate-adaptable business. A great world together.”
In addition to the training, the winning enterprises will be provided with mentorship and support to expand partnerships, knowledge sharing and learning through a network of young entrepreneurs in climate adaptation. The challenge also offers its winners an opportunity to participate in a 12-month business accelerator program to help them scale up their businesses, deepen their impact and create decent jobs.
An annual competition, the challenge falls under one of the pillars of the Africa Adaptation Acceleration Program, namely empowering youth for entrepreneurship and job creation in climate adaptation and resilience. The strategic goal is to strengthen inclusive growth and broaden investment and economic opportunities for youth in Africa by providing training, mentorship, and financing to youth-led businesses.
The Africa Adaptation Acceleration Program is a partnership between the African Development Bank and the Global Center on Adaptation.
The African Development Bank’s contribution to the YouthAdapt Challenge was sourced from the Youth Entrepreneurship and Innovation Multi-donor Trust Fund.
Investment in digital and creative enterprises – the i-DICE program
Nigeria will become the third most populous country in the world with a doubling of its population from some 210 million today to over 400 million by 2050 – 300 million of whom will be under 35 years old. However, high youth unemployment (43%) and underemployment (21%) undermine progress towards economic development, poverty reduction and social inclusion goals. Lack of jobs for the youth is also associated with rising social unrest.
To address this, Nigeria must create at least 5 million new jobs every year, and its ICT and creative industries, that today contribute 15% and 8% to GDP respectively, are well placed to play a significant role. Investment in these sectors and revenues generated are increasing, and Nigeria has a competitive advantage with the largest telecom market in Africa. But development is hampered by inadequate infrastructure, skills, broadband access, regulations and policies, and tackling these issues is key to unlocking the clear potential.
AfDB will support this through a $170 million contribution to the Digital and Creative Enterprises Program (i-DICE) program.
i-DICE is a Federal Government of Nigeria program to promote investment in Information and Communications Technology (ICT) and Creative Industries to support the government’s employment generation agenda. Interventions aim to (i) harness Nigeria's youth talent pool and equip them with skills to increase their employability, (ii) foster innovation for the emergence of more entrepreneurs to create employment, and (iii) support the enactment of enabling regulatory frameworks and policies for new businesses and innovative ventures. The Program will generate and disseminate specific studies to address knowledge gaps in the technology and creative sectors and their advancement of gender equality, climate change adaptation and resilience.
It targets more than 68 million entrepreneurial young men and women (15-35 years old) in all 36 states, working in innovative, early-stage, technology-enabled start-ups and creative sector micro, small and medium sized enterprises, to be selected based on transparent criteria or competitive calls. A dedicated budget will nurture women led start-ups. The program also works with enterprise support organizations (ESOs) that include hubs, accelerators, venture capital and private equity firms, federal, state and private universities and polytechnics, federal ministries and agencies.
It uses a systemic, cross sectoral, private sector development approach focused on programmatic interventions and catalytic investments, achieving scale through effective and wide ranging partnerships. The i-DICE program builds on other AfDB-financed operations to address constraints and help to develop the environment where start-ups, early growth and high impact businesses can thrive and flourish.
- Feasibility studies and assessment of job opportunities in adaptation that are to be carried out in Bank’s operations;
- Feasibility studies to assess integration of adaptation and mitigation measures for the sustainability of “adaptation jobs;Quality assurance and advisory services for results and evidence-based planning, management and M&E of interventions of the i-DICE programme;
- US$1.14 million dedicated to female-led start-ups.
- US$216.7 million made available to technology and creative businesses.
- US$10.4 million to reduce greenhouse gas emissions and vulnerability to climate change.
- US$433.3 million in capitalization reached through the participation of various types of investors.
- US$331.7 for investments in technology and creative start-ups.
- 849,970 direct and indirect jobs created (77,270 direct and 772,700 indirect).
- 175,000 (50% female) youth trained/certified in basic, intermediate, and advanced ICT skills.
- 77,110 (44% female) youth with new skills to secure employment or create their own businesses.
- 250 (50% female) unemployed post-graduate youth connected to start-ups to enhance their skills.
- 226 innovative technology and creative start-ups to have received catalytic financing.
- 270 (44% female) start-ups supported with access business development services.
- 451 digital technology and creative start-ups/MSMEs to have received non-financial services.
- Capacity of 75 enterprise support organizations (ESOs) strengthened to better support start-ups.
- 4 national data centres or sandbox infrastructure upscaled.
- Enabling regulatory environment developed and implemented.
- 6.1 million jobs created, directly and indirectly, most of which will benefit the youth.
- Nigeria’s venture capital market development boosted.
- Solar energy solutions developed for digital technology incubation.
- Centres of Excellence established in universities and polytechnics.
- Greenhouse gas emissions reduced by 10.6tCO2e per annum.
- Economic and financial benefits to the Nigerian economy estimated at US$6.4 billion.
AfDB - USD 170million
AFD - USD 116million
ISDB – USD 70million
Fund manager - USD 9million
Investors (DFIs, Foundations & Philanthropies, Family Offices, Lending) - USD 208million
Total - USD618million
Special agro-industrial processing zones program – phase I (SAPZ I)
Larges areas of fertile soils, a conducive climate and ample labour offer Nigeria much potential for agricultural development. However, economic benefits are constrained by low crop yields, very high post-harvest losses (of 30–50%), limited value addition, and an acute shortage of the required infrastructure, especially regarding energy and transportation. These limitations make locally produced food uncompetitive, leading to increased food imports, and contribute to the high levels of poverty, rising unemployment, and low private sector investment in the agroindustrial sector.
In response, federal and state governments expressed overwhelming support for the creation of ‘special agro-industrial processing zones’ (SAPZs), where public–private partnerships can strengthen rural infrastructure and expand the transformation of priority crops. Based on this need, the SAPZ program was designed to support governmental economic and social development programs that will especially benefit smallholder farmers, women and youth.
The SAPZ program is aligned with national policies and priorities that support the goals of increasing agricultural output, food security, productivity, business growth, entrepreneurship and industrialization, infrastructure development and social inclusion, as well as poverty reduction. Strengthening value chains for priority crops, including aggregation, and ensuring reliable supplies of quality raw materials is a key target; as is support to transforming the livestock sector by establishing cattle ranches and improving fodder production. This in turn will spur private sector investment in the agro-industrial sector, including small and medium size enterprises, and foster job creation.
The SAPZ program objective is to support inclusive and sustainable agro-industrial development in Nigeria, with the goal of increasing household incomes, fostering job creation in rural agricultural communities especially for youth and women, and enhancing food and nutritional security. It will do this through four mutually reinforcing components: (i) infrastructure development and the development of agro-industrial hubs, (ii) increasing agriculture productivity and production, (iii) policy and institutional development, and (iv) programme coordination and management.
The first phase will be implemented in seven states (Cross River, Imo, Kaduna, Kano, Kwara, Ogun, and Oyo) and the Federal Capital Territory (FCT) and then will be rolled out in later phases. This a flagship initiative of AfDB’s ‘Feed Africa’ strategic priority and its aim is to provide end-to-end solutions and services that de-risk private sector production, processing and marketing, whilst boosting manufacturing and transformation capacity.
- Definition of the concept of “adaptation jobs”;
- Feasibility studies and assessment of job opportunities in adaptation that are to be carried out in Bank’s operations;
- Feasibility studies to assess integration of adaptation and mitigation measures for the sustainability of “adaptation jobs;
- Quality assurance and advisory services for results and evidence-based planning, management and M&E of the SAPZ 1 interventions;
The intervention will seek to sustainably contribute to poverty alleviation, and reduced hunger and inequality, by providing opportunities for economic diversification, job creation, improved livelihoods and building climate resilience. Specifically, it is expected to the following outcomes:
- Capacity building (training of trainers) programs on climate resilient practices established.
- Extension services strengthened.
- Skills of farmers and micro, small and medium-sized enterprises (MSMEs) developed.
- Increased supply of certified agricultural inputs.
- Agroforestry, multiple cropping and sustainable practices and technologies promoted and incentivized.
- More fuel-efficient farm machinery procured, with improved climate-aware design of program assets.
- Revised agro-industrial zone policies, and a special regulatory regime established.
- 8 agro-industrial processing hubs (AIHs) developed for 15 agricultural transformation centres (ATCs) established for improved food security and increased incomes for farmers.
- 2,300 ha of land irrigated with new roads for market access for sustained increase in agricultural productivity and jobs creation i.e. 2 million jobs created (400,000 directly, 1.6 million indirectly).
- 1.5 million households involved in agricultural value chains lifted from food insecurity and low incomes.
AfDB - USD 160million
AGTF – USD 50million
ISDB – USD 150million
IFAD – USD 100million
GCF – USD 60million
Total – USD 538.05million
Global Center on Adaptation, AfDB host regional forum on the future of resilient food systems in Africa
The Global Center on Adaptation (GCA) in collaboration with the African Development Bank and the Wangari Mathai Institute have concluded a three-day regional forum on the future of resilient food systems in Africa.
The Forum, called the Future of Resilient Food Systems in Africa – AAAP Digital Solutions for a Changing Climate provided training aimed at strengthening the capacity of stakeholders from across Eastern Africa to design and implement solutions to improve food security and climate resilience and to facilitate knowledge sharing among farmers on approaches to scale up the use of Digital climate-informed advisory services, or DCAS.
Digital climate-informed advisory services are tools and platforms that integrate climate information into agricultural decision-making. These services range from digital mobile apps, radio, and online platforms to digitally enabled printed bulletins based on climate models and extension services that utilize climate information platforms.
DCAS offers crucial opportunities to build the resilience of small-scale producers in the face of worsening climate change impacts. From seasonal forecasts to pest advisories, effectively designed services provide producers with the resources to adapt to climate shocks and plan for new climate conditions.
Globally, more than 300 million small-scale agricultural producers have limited or no access to such services because service provision is still fragmented, unsustainable beyond project cycles, and not reaching the last mile.
Speaking at the opening ceremony of the forum, Professor Patrick Verkooijen, CEO of Global Center on Adaptation called for urgent financial support to put Africa on the path of food sovereignty.
“Africa needs urgent support to scale up the implementation of adaptation solutions that are already yielding good results for irrigation, developing drought-resistant seeds, crops and livestock diversification, “ he said.
“Through the African Adaptation Acceleration Programme, AAAP, we are rolling out a $350 million project to build resilience for food and nutrition security in the Horn of Africa towards mobilising new digital climate technology for market information, insurance products, financial services that can and must be tailored to smallholder farmers’ needs”, he added.
Speaking on behalf of the African Development Bank’s East Africa Regional Director General, Nnenna Nwabufo, Dr Pascal Sanginga, Regional Sector Manager for Agriculture and Agro-Industries noted that the forum was timely, coming hot on the heels of the recently concluded Dakar 2 Feed Africa-Food Sovereignty and Resilience summit , organised by the African Development Bank.
“The Africa Adaptation Acceleration Program (AAAP) is already contributing to closing Africa’s adaptation gap by supporting African countries to make a transformational shift in their development pathways by putting climate adaptation and resilience at the center of their policies, programs, and institutions. There is no doubt that AAAP will be a strong component of the Country Food and Agricultural Delivery Compacts to accelerate the transformation of Africa’s food systems and build a more resilient Africa”, he said.
Professor Stephen Kiama Gitahi, Vice Chancellor of the University of Nairobi, reiterated the relevance of the forum pointing out that 70% of the population in Eastern Africa live in rural areas and depend on agriculture for their livelihoods. He encouraged the trainers to simplify the modules in a manner that removes the fear for technology and accelerate adaptation for rural farmers. Citing the legacy of late Professor Wangari Maathai he stated:
“We acknowledge that gaps exist on climate adaptation in the rural communities and those can be smartly bridged with the use of digital smart agriculture and climate innovations to create great conservation impact in our region.”
The forum brought together stakeholders from ministries of agriculture, related government agencies, public research institutions, farmer organizations, universities and non-profit organizations working on climate adaptation for food security in Eastern Africa. These included participants from Djibouti, Eritrea, South Sudan, Burundi, Rwanda, Mauritius, Tanzania, Seychelles, Sudan, Ethiopia, Rwanda and Kenya.
About Global Center on Adaptation
The Global Center on Adaptation (GCA) is an international organization which works as a solutions broker to accelerate action and support for adaptation solutions, from the international to the local, in partnership with the public and private sector. Founded in 2018, GCA operates from its headquarters in the largest floating office in the world, located in Rotterdam, the Netherlands. GCA has a worldwide network of regional offices in Abidjan, Cote d’Ivoire; Dhaka, Bangladesh and Beijing, China.
About the Wangari Maathai Institute, University of Nairobi
The Wangari Maathai Institute (WMI) for peace and environmental studies is a global centre for teaching and research on environmental management, governance, peace and conflicts and the nexus between peace and democracy. The centre was founded in 2009 with the support of the Government of Kenya (GoK), the African Union(AU) and the African Development Bank(AfDB) to celebrate and immortalize the work of the late Nobel Laurete
Prof.Wangari Maathai who was a global champion on environmental conservation and governance. The centre trains future leaders and Champions for environment. The Centre is located in the serene environment in Upper Kabete suburb of Nairobi City.
Digital Climate Adaptation Solutions Training- North Africa
Harnessing the power of technological innovations and digitalization to improve agricultural productivity and strengthen climate resilience has been recognized as one of the potential game changers to address many of pressing climate concerns and rural transformation challenges facing Africa today.
Digital climate-informed advisory services are tools and platforms that integrate climate information into agricultural decision-making. These services range from digital mobile apps, radio, and online platforms to digitally enabled printed bulletins based on climate models and extension services that utilize climate information platforms. DCAS offers crucial opportunities to build the resilience of small-scale producers in the face of worsening climate change impacts, particularly when bundled with complementary services (such as financing, input supply, market access, insurance).
The objectives of the DCAS trainings are as follows:
- Capacity enhancement for agricultural stakeholders across North Africa in DCAS
- Supporting trainees to improve their confidence and capacity to design and implement DCAS projects to reach the last mile and farmers for improved food security and climate resilience
- Facilitating knowledge/experience sharing of participants on contextual issues and approaches to scale up DCAS
- Increase the knowledge of stakeholders from across North Africa on opportunities and new approaches for the design, mainstreaming and use of digital tools and data-enabled agriculture to combat the effects of climate change
- enhancing capacity to use digital agriculture advisory services and solutions to ensure uptake by of DCAS among stakeholders in North Africa
- Over 50 Participants trained in digital agriculture and digital climate adaptation solutions
- A new cohort or platform of African public officials, researchers, farmers organizations leaders and agricultural NGO focal points with improved expertise in DCAS (for subsequent experience capitalization follow up and training)
- Training evaluation assessment report
- Improved understanding / knowledge of target stakeholders in North Africa through training and information sharing including lessons learned on the challenges, opportunities and new approaches to the design, mainstreaming and use of DCAS and data-enabled agriculture
- Enhanced capacity of selected agricultural stakeholders in public institutions and farmers groups across North Africa to use digital agriculture advisory solutions, implement digital climate smart advisory solutions, and train their members/colleagues to use DCAS tools
€100,000
Multi-Stakeholder Climate Risk Dialogue: Kenya-South Sudan link road refurbishment project
What: This is a private event
Where: Nairobi, Kenya
When: 25 April 2023, 9:00
The Multi Stakeholder Dialogue on Climate Hazards will be the opportunity to present and discuss the preliminary results and the initial climate hazard assessment to the project stakeholders.
Event description:
The Global Center on Adaptation (GCA) is organizing a Multi Stakeholder Dialogue on Climate Hazards, to support the Leseru-Kitale and Morpus-Lokichar road upgrade project, on Tuesday 25 April 2023 at 9am in Nairobi, Kenya.
This initiative is implemented as part of the African Adaptation Acceleration Program, a joint initiative from GCA, the African Union and the African Development Bank, to increase access to climate finance and mainstream climate adaptation in investment projects.
In this context, GCA is overall implementing the following activities to support the Leseru-Kitale and Morpus-Lokichar road upgrade project, with the consortium Royal HaskoningDHV, Lobelia, and Rebel Group:
- High granularity understanding and mapping of current and future climate hazards.
- Detailed climate risks assessment.
- Downstream adaptation and resilience options appraisal for the project, focused on Operations and Maintenance phase and Nature-based solutions if applicable.
- Technical guidelines for climate-resilient transport asset management.