AAAP in the Media
Displaying 1 - 11 of 11
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
AAAP webinar: Innovation essential for climate-smart future, but it's not enough
The 2022 United Nations Climate Change Conference, COP27, is dubbed ‘African COP’ as the impact of climate change on African countries will be a key theme of discussions. Agriculture and food systems will also be a critical focus of COP27, with Saturday, 12 November, dedicated to both themes, in addition to adaptation. Also high on the climate agenda is the role of the youth, as 10 November is dedicated to their participation.
Ahead of COP27 and in line with their commitment to this youth agenda, the African Development Bank and the Global Center on Adaptation hosted a webinar to examine ways to make agriculture attractive to the youth.
The webinar titled, Are Climate-Smart and Digital Agriculture Solutions the Silver Bullet to Attract Youth, highlighted the potential of climate-smart and digital agriculture in attracting young people and thereby rejuvenating an aging global agricultural sector.
Dr. Kevin Kariuki, African Development Bank’s Vice President for Power Energy, Climate and Green Growth, pointed out the challenges the agriculture sector faces due to the changing climate change.
“Agriculture across most of sub-Saharan Africa is still predominantly rain-fed and therefore extremely vulnerable to both short-term fluctuations and long-term changes in climate conditions. It is the most exposed sector with estimates indicating that climate change will cause a decrease in yields of 8 – 22% for Africa’s rain-fed staple crops over the next 20 years,” Kariuki said.
Dr. Beth Dunford, African Development Bank’s Vice President for Agriculture, Human and Social Development, noted that while agriculture holds tremendous potential for job creation in Africa, its current traditional form is not attractive to young people for various reasons, including negative perceptions.
“Who wants to wear overalls, dig the field with a hoe or drive a tractor when we can do it in a suit and dust coat, right? However, technology makes agriculture cool enough to motivate them to use tech-enabled enterprises to be part of agricultural value chains,” Dunford said.
Prof. Anthony Nyong, Senior Director for Africa at the Global Centre on Adaptation, said: “There is a gap in the agriculture sector in Africa, and that is in the use of digital solutions.”
AAAP’s Climate Smart Digital Technologies for Agriculture and Food Security Pillar is scaling up access to digital technologies and associated data-driven agricultural and financial services for at least 30 million African farmers.
In the African Development Bank’s Program to Build Resilience for Food and Nutrition Security in the Horn of Africa (BREFONS), currently ongoing in Djibouti, Ethiopia, Kenya, Somalia, South Sudan, and Sudan, the AAAP is facilitating the integration of climate-smart digital technologies for adaptation and resilience.
“The project will increase the productivity of crops and livestock by 30%, reaching about 1.3 million farmers and pastoralists using climate services such as index insurance. About 55,000 additional jobs will be created for youth and women,” said Oluyede Ajayi, Africa Program Lead, Food Security and Rural Well Being, Global Centre on Adaptation.
Panelists said the youth must utilize their digital skills to accelerate the transformation of the agricultural sector, which forms the central pillar of Africa’s economy. They urged participants to contribute to solutions that enhance market linkages to promote agribusiness.
“Africa’s significant youth population faces rising unemployment with myriad negative consequences. These challenges are further exacerbated by climate shocks, skill gaps & limited preparedness to address the effects of climate change,” said Andre-Marie Taptue, Principal Economist at the African Development Bank's Jobs for Youth program.
AAAP’s YouthAdapt program promotes sustainable job creation through entrepreneurship in climate adaptation and resilience in Africa by unlocking $3 billion in credit for adaptation action.
Last year, the first set of ten young African entrepreneurs and Micro, Small, and Medium-sized Enterprises offering innovative solutions and business ideas that can drive climate change adaptation and resilience were awarded at COP26 in Glasgow. This year the Africa Youth Adaptation Competition 20 enterprises across Africa will each receive up to $100,000 in addition to mentorship and coaching to support their climate change adaptation innovation.
Panelists included Claude Migisha from the African Development Bank, Dr. Fleur Wouterse, and Aramide Abe from the Global Center of Adaptation. They shared their views on how AAAP was shaping and adding value to the Bank Digital Agriculture Flagship program, ways to accelerate investor engagement in agriculture adaptation, and how the YouthADAPT was moving the needle on entrepreneurship, unlocking finance and job creation.
Gislaine Matiedje Nkenmayi from Mumita Holdings, a recipient of the 2021 YouthADAPT Challenge award, shared her experience on how the $100,000 grant transformed her enterprise.
“With the grant, we were able to reach out to more than 10 cooperatives with a total of 257 smallholder farmers, to whom we offer free advisory services, low-cost greenhouses and solar-powered irrigation systems. We have been able to expand production from 100kg to 1000kg of fresh vegetables weekly,” Nkenmayi said.
In her concluding remarks, Edith Ofwona Adera, Principal Regional Climate Change Officer and AAAP coordinator at the Bank stressed the need to strengthen adaptation and resilience measures and expedite mainstreaming climate adaptation for transformation at scale. She called for the engagement of the private sector, given the role they can play in adapting to climate change, financing adaptation, and supporting others through products and services for resilience.
Building resilience for food and nutrition security in the Horn of Africa (BREFONS)
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.
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.
- 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
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)
- 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.
USD 210 million