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Climate change is predicted to have increasingly dire effects on the largely rainfed agriculture of sub-Saharan agriculture, a livelihood that also contributes to climate change. Within this context, multilateral funding institutions are increasingly funding projects devoted to the adaptation to or mitigation of climate change. Data from the Organisation for Economic Development (OECD) provide an overview of climate-related project data, but the intersection of climate-related projects and projects intended to develop rural and agricultural economies is less explored. This paper focuses on climate-related projects in sub-Saharan Africa in the context of rural and agricultural project funding. We use a custom dataset from three separate multilaterals (the World Bank, African Development Bank, and International Fund for Agricultural Development) to answer the following research questions:
- What proportion of agriculture-related lending across the three multilaterals of interest has a climate component?
- Which countries are borrowing most for climate-related agricultural projects? Is the amount of borrowing correlated with a country’s climate risk?
Of all financing projects in our dataset (N = 1,846), we identified 203 as being climate-related (11%) and 505 as being related to rural agricultural economies (27%). Of the $26.5 billion annualized project funding, rural and agricultural financing accounts for $6.5 billion (24.6%) while climate projects receive $1.97 billion (7.4%). The World Bank funds approximately half of all agriculture projects in the dataset, with the AfDB funding just under 30% and IFAD just over 20%.
Annual average borrowing amounts from multilaterals for climate-related rural/agricultural economies projects varies widely across sub-Saharan Africa. The major borrowers include Ethiopia ($150 million), Nigeria ($105 million), and Kenya ($102 million). The proportion of multilateral borrowing for climate-related projects among all rural agricultural borrowing also varies substantially across sub-Saharan Africa; the Seychelles and Eswatini devote the largest proportions of rural agricultural borrowing toward climate work (100% and 69.8%, respectively). Fourteen SSA countries devote between 15% and 30% of rural agricultural borrowing to climate-related projects and fifteen have not received any multilateral financing for climate-related rural/agricultural economies projects.
We do not find a statistically significant relationship between a country’s Climate Risk Index and the proportion of annual rural/agricultural economies borrowing focused on climate.
Suggested Citation:
Financing for Climate Change in Africa: A View of Sovereign Borrowing in Agriculture from Multilateral Funding Institutions . EPAR Technical Report #411 (2022). Evans School of Public Policy & Governance, University of Washington. Retrieved <Day Month Year> from https://epar.evans.uw.edu/research
This research brief synthesizes evidence on the effects of policy incentives on agricultural productivity. The evidence discussed is primarily drawn from documents provided to EPAR by the Bill and Melinda Gates Foundation. We review the role of policy and institutions in the Asian Green Revolution, a detailed case study on how policy changes have removed smallholder productivity constraints and contributed to growth, and the theory on the connection of policy incentives to productivity growth.
This research brief reports on full time equivalent (fte) positions devoted to research and development of major food and cash crops in Sub-Saharan Africa (SSA). Data on fte by country and crop were collected from individual Agricultural Science and Technology Indicator (ASTI) country briefs. ASTI data are obtained from unpublished surveys conducted by CGIAR centers. Our report includes 23 countries in SSA.
Over the past several decades, donors, multilateral organizations and governments have invested substantial resources in developing and disseminating improved varieties of sorghum and millet in Sub-Saharan Africa (SSA). Researchers believe that sorghum and millet have the ability to improve food security and mitigate the influence of climate change on food production for some of the most vulnerable populations. As a result, agricultural scientists have focused on developing improved cultivars to increase the relative benefits of these two crops and disseminate this technology to a larger number of farmers. This report provides an overview of the development and dissemination of improved sorghum and millet cultivars, factors that influence the adoption of improved cultivars among farmers in SSA, and examples of interventions designed to encourage adoption in SSA. We find that while national governments and international research institutes have successfully developed a number of improved sorghum and millet cultivars, adoption rates in SSA (particularly in West and Central Africa) are low. The literature suggests that overall efforts have increased adoption rates, but at varying costs.