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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
In this dataset, we compile current project data from three major international financial institutions (or IFIs) - the World Bank, African Development Bank, and the International Fund for Agricultural Development - to understand
- how much countries are borrowing from each institution. and
- how much of that funding is devoted to small scale producer agriculture.
We begin by gathering publicly accessible data through downloads and webscraping Python and R scripts. These data are then imported into the statistical software program, Stata, for cleaning and export to Excel for analysis. This dataset contains rich information about current projects (active, in implementation, or recently approved), such as project title, project description, borrowing ministry, commitment amount, and sector. We then code relevant projects into two categories: On Farm (projects pertaining directly to small scale producer agriculture) and Rural/Agricultural Economies (inclusive of On Farm, but broader to include projects that impact community livelihoods and wellbeing). Finally, we annualize and aggregate these coded projects by IFI and then by country for analysis. Bilateral funding, government expenditures on agriculture, and development indicators are also included as supporting data to add context to a country's progress towards agricultural transformation.
The primary utility of this dataset is having all projects collected in a single spreadsheet where it is possible to search by key terms (e.g. commodity, market, financial, value chain) for lending by IFI and country, and to get some level of project detail. We have categorized projects by lending category (e.g. irrigation, livestock, agricultural development, research/extention/training) to aggregate across IFI so that the total funding for any country is easier to find. For example, Ethiopia and Nigeria receive the most total lending from these IFIs (though not on a per capita basis), with each country receiving more than $3 billion per year on average. Ethiopia receives the most lending devoted to On Farm projects, roughly $585 million per year. Overall, these data provide a snapshot of the magnitude and direction of these IFI's lending over the past several years to sub-Saharan Africa.
Suggested Citation:
Figone, K., Porton, A., Kiel, S., Hariri, B., Kaminsky, M., Alia, D., Anderson, C.L., and Trindade, F. (2021). Summary of Three International Financial Institution (IFI) Investments in Sub-Saharan Africa. EPAR Technical Report #411. Evans School of Public Policy & Governance, University of Washington. Retrieved <Day Month Year> from https://epar.evans.uw.edu/research/tracking-investment-landscape-summary-three-international-financial-institutions-ifis
Donor countries and multilateral organizations may pursue multiple goals with foreign aid, including supporting low-income country development for strategic/security purposes (national security, regional political stability) and for short-and long-term economic interests (market development and access, local and regional market stability). While the literature on the effectiveness of aid in supporting progress on different indicators of country development is inconclusive, donors are interested in evidence that aid funding is not permanent but rather contributes to a process by which recipient countries develop to a point that they are economically self-sufficient. In this report, we review the literature on measures of country self-sufficiency and descriptive evidence from illustrative case studies to explore conditions associated with transitions toward self-sufficiency in certain contexts.
This research brief provides an overview of the banana and plantain value chains in West Africa. Because of the greater production and consumption of plantains than bananas in the region, the brief focuses on plantains and concentrates on the major plantain-producing countries of Ghana, Cameroon, and Nigeria. The brief is divided into the following sections: Key Statistics (trends in banana and plantain production, consumption, and trade since 1990), Production, Post-Harvest Practices and Challenges, Marketing Systems, and Importance (including household consumption and nutrition). West Africa is one of the major plantain-producing regions of the world, accounting for approximately 32% of worldwide production. Plantains are an important staple crop in the region with a high nutritional content, variety of preparation methods, and a production cycle that is less labor-intensive than many other crops. In addition to plantains, bananas are also grown in West Africa, but they account for only 2.3% of worldwide production. Bananas are more likely than plantains to be grown for export rather than local consumption. Major constraints to banana and plantain production include pests and disease, short shelf life, and damage during transportation.
This desk study reports on the small-scale machinery sector in China and a selection of SSA countries: Ethiopia, Tanzania, Nigeria, Burkina Faso, and Uganda. The report is organized into three sections. Section 1 discusses the current state of small-scale agricultural machinery in SSA for crop and livestock production in each of the SSA countries identified. It also seeks to identify major areas of need in terms of agricultural mechanization and major constraints to agricultural machinery adoption, dissemination and maintenance. Section 2 focuses on the agricultural machinery sector in China and Chinese Africa relationships in agricultural development. It also identifies the major government players in the Chinese agricultural machinery sector. Section 3 is a “directory” of small-scale agricultural machinery manufactured in China with potential relevance for SSA smallholder farmers. We divide machines by function (e.g. threshing) although many Chinese machines are multi-function and can serve multiple purposes. We also note applicable crops, if listed by the manufacturers, and technical specifications as available.