Engaging with Businesses to Promote Climate Resilient Agriculture in East Africa
Abstract
Adaptation to climate change requires economic investment and engagement with private sector actors. The agriculture sector in East Africa, which is dominated by small-scale rain-fed crop agriculture and pastoralism, is disproportionately exposed and vulnerable to climate change impacts. Opportunities exist to incentivize climate smart decision-making within the agriculture sector through businesses investment in order to promote climate resilience. However, socio-economic barriers, such as the lack of investable climate smart agriculture (CSA) projects, interfere with the viability of investment in the region. The Catalyzing Smart Agriculture Investment (CSAI) project examined and engaged with the socio-ecological system components and dynamics that influence the investment in CSA businesses and, ultimately, the agricultural practices that influence climate resilience and the bio-physical system. Focusing within Kenya and Uganda, the project pursued a three-pronged strategy: (1) promote enabling CSA private sector environment, (2) incubate innovative, early stage climate-smart and inclusive agribusinesses, and (3) mobilize private finance and public support for proven and scalable CSA business models. Over the course of two years, we screened 61 firms as potential investors and enterprises, and supported 31 CSA businesses. We found that CSA business investment is hindered by generalizable barriers to agriculture investment (such as bureaucratic procedures, limited lack of knowledge and limited market access) as well as barriers specific to CSA investment (such as lack of awareness about potential returns from CSA). We faced challenges in matching the CSA benefits and business investment needs (e.g. loan size) with investor incubation and acceleration goals. Many CSA businesses needed support preparing basic documentation for the investors. This work was funded by United States Agency for International Development and implemented by a consortium comprised of SNV, Climate Focus, and Unique forestry and land use.
- Publication:
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AGU Fall Meeting Abstracts
- Pub Date:
- December 2018
- Bibcode:
- 2018AGUFM.B31C..04B
- Keywords:
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- 0402 Agricultural systems;
- BIOGEOSCIENCESDE: 1616 Climate variability;
- GLOBAL CHANGEDE: 1630 Impacts of global change;
- GLOBAL CHANGEDE: 1632 Land cover change;
- GLOBAL CHANGE