The Green Climate Fund (GCF) has signed an agreement with the Tanzanian commercial bank CRDB Bank to implement a climate change adaptation financing programme for smallholder farmers in Tanzania.
Smallholder farmers in Tanzania will be supported in their adaptation to climate change. This will be done through a joint programme between the Green Climate Fund (GCF) and CRDB Bank, a commercial bank licensed by the Central Bank of Tanzania and listed on the Dar es Salaam Stock Exchange.
On the sidelines of the Commonwealth Heads of Government Meeting (CHOGM) that ended a few days ago in Kigali, Rwanda, the two financial institutions signed an agreement to implement the Tanzania Climate Adaptation Technology Deployment Programme (TACATDP). This initiative aims to strengthen the climate resilience of smallholder farmers and agribusinesses.
A $200 million investment
“It is estimated that 90% of Tanzania’s agricultural land is owned by smallholder farmers and that 98% of economically active rural Tanzanian women are engaged in agriculture, making these groups particularly vulnerable to climate change,” says the GCF.
The recently signed agreement with CRDB Bank establishes the legal basis for GCF to transfer its $100 million co-investment to CRDB in this $200 million programme. Under the TACATDP, the commercial bank will market new financial products that support farmers’ climate resilience.
GCF technical assistance
This is a credit line dedicated to climate adaptation technologies and practices. This instrument will be accompanied by a credit guarantee facility to expand access to new borrowers, as well as a weather-indexed insurance product to help farmers protect themselves against losses from weather-related events. “This programme aims to reach over 6.1 million direct and indirect beneficiaries by transforming the country’s climate finance processes to better accommodate affordable climate adaptation technologies in the agricultural sector. This will ultimately boost food security and strengthen the resilience of smallholder farmers, thereby improving the livelihoods and quality of life of our citizens,” says Abdulmajid Mussa Nsekela, Chief Executive Officer of CRDB Bank.
According to him, the $100 million Green Climate Fund grant will also fund technical assistance to help government institutions integrate climate risks into national planning and to support agribusinesses in understanding best practices for climate-resilient agriculture.
Jean Marie Takouleu