Financial institutions urged to go green during climate seminar in Uganda
In a recently organised seminar in Uganda on climate change and its effects on agriculture, local financial institutions and service providers learned about the pending consequences for their own agricultural investment and loans portfolio.
The seminar is part of the Climate Resilient Agribusiness for Tomorrow (CRAFT) project’s strategic engagement to create systems change by increasing collaboration and exchange amongst public-private actors for large scale roll-out of climate smart Agriculture in East Africa.
In his opening remarks, Pierre Schonenberg, Senior Project Manager Agribusiness representing Rabo Partnerships, urged financial institutions present to take an active role in the green sustainability movement because they are key actors in agriculture. “The CRAFT project through its Climate Innovation and Investment Facility has set aside funds to support bankable agri-businesses that have social, environmental and economic benefits in value chains. We cannot do this on our own, we need both the agri-businesses and financial institutions to co-invest if we are to see sustainable results at scale,” Pierre added.
A cross section of participants that attended the seminar
Scientists from CGIAR’s Research Program on Climate Change, Agriculture and Food Security and Wageningen University and Research (WUR) presented future climate change projections for Uganda showing the likely increases in temperature and changes in precipitation. The related crop modelling showed the impact these changes would have on rainfed crops like soybean. The models showed that climate change will impact the business of all actors in different value chains, including financial institutions.
Representatives from the financial institutions highlighted the incorporation of climate smartness and sustainability in agri-business financing as key challenge in this effort. The seminar concluded with an agreement to develop innovative and targeted financing solutions for the agriculture sector using a climate change lens.
The seminar aimed to sensitise local financial institutions about the impacts of climate change on the agriculture sector and raise their awareness about the consequences on their own agricultural investment and loans portfolio.
The seminar is part of the CRAFT project’s strategic engagement to create systems change by increasing collaboration and exchange amongst public-private actors for large scale roll out of climate smart agriculture in East Africa.
About the CRAFT project
Climate Resilient Agribusiness for Tomorrow is a five-year project funded by the Netherlands Ministry of Foreign Affairs. It is implemented by SNV in partnership with Wageningen University and Research, CGIAR’s Research Program on Climate Change, Agriculture and Food Security, Agriterra, and Rabo Partnership. The project will increase the availability and accessibility of climate-resilient food for the growing populations in Kenya, Tanzania and Uganda by delivering impact in the following areas;
- Increasing productivity and income for 300,000 smallholder farmers;
- Improving business performance for 50 agribusiness SMEs and 30 cooperatives (of which at least 25% are managed by women and/or youth);
- Climate resilient sustainable food production practiced on 600,000 hectares.
Read more about the CRAFT project.