DISCUSSION STARTER SEPTEMBER 2023 Advancing climate change adaptation in African food systems Seven key priorities for action on adaptation Bruce M. Campbell 1, Amath Sene 2, Alloysius Attah 3, Oluyede Ajayi 4, Wole Fatunbi 5, Afton Halloran 6, Inga Jacobs-Mata 7, Rahwa Kidane 8, Ruwa Matsika 9, Mercy Nyambura 10, Jacob Nyirongo 11, Steve Prager 12, Dawit Solomon 13, Ishmael Sunga 14, Edmond Totin 15, Portia Adade Williams 16, Paul Winters 17, Robert Zougmore 18 A farmer tends her field of cassava in northern Tanzania. ©2012 CIAT / Neil Palmer Executive summary Climate impacts in Sub-Saharan Africa are severe likelihood of not achieving SDG2 on zero hunger, and and will increase. Agriculture is a cornerstone of the the large numbers requiring humanitarian assistance economies of most countries and yet is dominated by because of climate change-related extreme events. climate-vulnerable rainfed systems. Meeting the food demands of the growing African population will require Adaptation finance and funding are lacking, with significant adjustments in food production systems international climate funding failing to reach the and unfortunately, current adaptation efforts across agreed targets and being dominated by indirect the continent are insufficient to meet the climate access. Private sector finance is limited but represents challenge. This is demonstrated by lack of progress on a massive opportunity. However, enabling policies and National Adaptation Planning (NAP) processes, the governance for adaptation need to improve. The following seven key priorities are discussed in this Discussion Starter: 2 • DISCUSSION STARTER | SEPTEMBER 2023 Introduction Climate change impacts on African food systems are The final list of seven includes four related to investment, already evident and will increase in severity in the given the current investments being deployed for years ahead. This is particularly concerning given the adaptation are woefully inadequate. These four dominance of rainfed systems and the slow pace of investment priorities cover private (Priority 1) and public adaptation actions. sector investment (Priority 2), financial governance (Priority 3), and access to international climate funds This paper distils a handful of key investment and (Priority 4). Two priorities cover game-changing action priorities. It was developed by a diverse group technologies: the digitalisation of the food system of stakeholders that came together to discuss and (Priority 5) and sustainable irrigation (Priority 6), the latter analyse the key priorities for adaptation action in Africa, to reduce the level of reliance on rainfed agriculture. focusing on Sub-Saharan Africa (SSA). This included The final priority is social protection (Priority 7), given individuals from farming organisations; local, regional the climate vulnerability and lack of opportunities for the and international research organisations and universities; poorest of the rural poor. foundations; international agricultural, development, environmental or climate organisations; and the private This paper sets out the background and justification for sector. stepped-up action, a vision for what needs to happen, and then describes each of the seven investment and action priorities. 3 • DISCUSSION STARTER | SEPTEMBER 2023 The case for advancing climate change adaptation Adaptation must go hand-in-hand with a reductions in emissions by high-emitting countries and Africa developing on a low emissions trajectory. Emissions from Africa in 2019 were only 11% of the global total, and it is thus essential that the big emitters from other conti- nents make significant progress on emission reductions; something not seen to date. This especially includes Chi- na, the United States, Europe, India, Russia, Japan, Brazil and Indonesia. However, with Africa's growing population and projected development, business-as-usual develop- ment should not be the norm; a low emissions develop- ment trajectory is needed. There are many co-benefits between adaptation and mitigation in the food system (Bezner Kerr et al., 2022). Climate impacts are severe and will increase. The sixth assessment report of the Intergovernmental Panel on Climate Change (IPCC) establishes that Africa has experienced a more pronounced increase in surface temperature and mean sea level than the global average A market in Northern Uganda. ©2017 CCAFS / Georgina Smith (IPCC, 2021). The report projects an escalation in the fre- quency and intensity of heavy rainfall across most African anticipatory adaptation measures at scale are implement- nations during the forthcoming decades. Climate change ed (see for example Faye et al., 2018). Many stressors, is already impacting, and will increasingly impact, food including rapid population growth, urbanization, and systems and broader rural livelihoods negatively. For food unsustainable land use practices, compound loss and systems, this means reduced yields, rising livestock mor- damage related to climate change. Some farming chal- tality, increased pests and disease, heat stress on animals lenges are rooted in historical processes, such as colo- and workers, loss of agricultural assets and infrastructure nial legacies, neoliberal policies, and social inequities in through floods and cyclones, areas going out of produc- access and control over land and other resources (Bezner tion and rising food prices and price shocks. This could Kerr et al., 2022). lead to lower and more variable incomes, increased un- certainty associated with rural livelihoods, increased food Meeting food demands of the growing African pop- insecurity and malnutrition, reduced economic growth, ulation will require significant adjustments in food as well as increased migration and conflict (IPCC, 2022; production systems. Ambitious adaptation plans and Trisos et al., 2022; Campbell, 2022). That climate change action are fundamental to secure rural livelihoods and impacts diverse livelihood components underscores the transformational food systems, but what predominates need to address climate change cross-sectorally. now is autonomous adaptation—responses implemented at the local level by households or individuals leading to Agriculture is a cornerstone of the economies of incremental change(for example shifting crop planting most countries in SSA and yet is dominated by rain- calendar or using early maturing varieties to respond fed systems. On average, agriculture contributes about to change climate) (Ziervogel and Parnell, 2014; Jiri et 17% to the gross domestic product of SSA—compared to al., 2017). This autonomous adaptation attempts to deal an estimated 4% globally (World Bank, 2022)—with most with short-term challenges—or coping—which is highly cropland remaining rainfed. Rainfed systems are particu- unlikely to reduce vulnerability in the longer term and has larly vulnerable to droughts, which are frequently increas- limited potential for transformational outcomes. ing under climate change. Irrigation is poorly developed in Africa despite research showing that the irrigated area Current adaptation efforts across the continent are can be greatly expanded (Xie et al., 2018). IPCC (2022) insufficient to meet the climate challenge. There is a and various studies project significant declines in the need for more anticipatory adaptation mechanisms that performance of the most common crops in Africa, unless enable strategic investments in improved infrastructure 4 • DISCUSSION STARTER | SEPTEMBER 2023 and wider access to finance for small-scale farmers. multiple and severe food security challenges (UNFPA, African farmers already implement varied strategies to 2023). Millions of livestock have died, destroying impor- deal with climate hazards, but many institutional challeng- tant livelihoods and ways of life. Many of the countries es limit them to incremental changes. This is partly due with the largest numbers of internally displaced people to resource and governance constraints beyond climate also face crisis levels of food insecurity. Climate-related policies that prevent farmers from accessing remunerative crises are likely to trigger further displacement and put markets, credit facilities, infrastructure, and information. additional pressure on already strained communities and There is widespread recognition of the necessity for am- resources (IDMC, 2023). In these cases, it is children and bitious planned or policy-driven adaptation measures to pregnant women who experience disproportionately support farmers. Implementing such policies into planned greater adverse impacts (IFPRI, 2023). By 2050, SSA adaptation action is falling behind schedule (Totin et al, could see as many as 86 million internal climate migrants 2015; Adenle et al., 2017; Kidane et al., 2022). Currently, (IDMP, 2023). there are many fragmented pilot schemes rather than large-scale implementation, and there is limited technol- Adaptation finance and funding is lacking. Annual ogy scaling and private sector involvement, with women monetary flows to adaptation in Africa are billions of particularly negatively impacted (Ogisi and Begho, 2023). dollars lower than the lowest cost estimates for near-term Based on the present trajectory of adaptation planning climate change. More of the commitments that were and execution, the adaptation gap is anticipated to ex- made in the 2014-2018 period were loans rather than pand significantly (IPCC, 2022). grants. This adds to the debt burden of countries (Trisos et al., 2022), which raises ethical concerns given the climate The National Adaptation Planning (NAP) process crisis is not African-driven. The total external debt servic- is not on track. By 2020, only three African countries ing payments for 44 African countries in 2019 was USD appeared to have implemented a monitoring and re- 75 billion, far exceeding the amounts going to climate porting system for their NAPs, indicating that adaptation action (< 4 billion to all sectors, for both adaptation and efforts are not on track (Leiter, 2021). The translation of mitigation). In addition, only 3.8% of research grant funds national adaptation policies and strategies into concerted on climate change worldwide focus on Africa—a number adaptation efforts is constrained by several interlinked not in line with population numbers or vulnerability to barriers, including financial, institutional, technical, and climate change (Overland et al., 2022). informational challenges, which are observed across several African countries (Ampaire et al., 2017; Basson et International climate funding has failed to reach the al, 2020; Kidane et al., 2022). agreed targets and is dominated by indirect access. During the 2010 United Nations Framework Convention Based on current adaptation implementation, SDG2 on Climate Change (UNFCCC) negotiations, developed on zero hunger will not be achieved. African countries countries pledged to channel US$100 billion per year by are not on track to achieve their own targets because of 2020 for climate change actions in developing coun- limited adaptive capacities and non-climatic compound- tries (UNFCCC, 2011). That target has not been achieved ing drivers of food insecurity that limit the possibility of (Bhattacharya et al., 2020). There are also controversies meeting SDG2 (Bezner Kerr et al., 2022). Only a single over what counts as climate funding, which is weakening country, Rwanda, is on track to achieve the Malabo trust among states (Pauw et al., 2022). Self-reporting by targets (African Union, 2022a). The continent is failing developed countries of funding provided to developing to achieve any of the seven Malabo commitments, with countries is often biased, exaggerated, and inaccurate scores on "Enhancing Investment Finance in Agricul- (Weikmans and Roberts, 2019). It will be important to not ture" (four countries on track) and "Ending Hunger by re-label existing development funds as adaptation funds 2025" (one country on track) particularly poor. Only four or loss and damage finance. In addition, indirect access countries spent at least ten percent of public funds on remains the dominant approach for funding adaptation agriculture. measures (Manuamorn and Biesbroek, 2020). For in- stance, a 2018 study revealed that over 61% of the Green Lack of resilience is indicated by the large numbers Climate Fund's African projects were managed by inter- requiring humanitarian assistance. Between 2015 and nationally accredited entities (IAEs) through the indirect 2019, an estimated 100 million people in the Horn of access modality (Fonta et al., 2018). Evidence suggests Africa and eastern and southern Africa required assis- that direct access to multi-lateral funds actually enhances tance due to climate-related food emergencies (Trisos et country ownership in climate policy formulation and im- al., 2022). Recently 36 million in the Horn of Africa faced plementation, reduces transaction costs associated with 5 • DISCUSSION STARTER | SEPTEMBER 2023 Farmers harvest okra in Mali. ©2012 CCAFS / Francesco Fiondella IAE management and execution fees, and builds national working to bring private finance into securing sustaina- capacity for successful adaptation outcomes (Masullo et ble and resilient value chains, especially those linked to al., 2015; Omari-Motsumi and Schalatek, 2019; Manua- smallholders. morn and Biesbroek, 2020). A key driver of change in Africa is the growing popu- Access and use climate funds is constrained. It is not lation numbers in urban areas, with an estimated 250 only total funding that is limited, but also the capacity million more mouths to feed in urban areas by 2030. to access and use funds. For example, an analysis in This will drive rising food demand and changing diets. Fu- 2017 showed that Africa has the highest percentage of ture demand will hopefully not be met by rising imports, rejected proposals going forward to the Green Climate which currently stand at about $40 billion per annum (Fox Fund (GCF) (Trisos et al., 2022). Of the overall climate and Jayne, 2020). Growth in urban demand represents a funding committed, only half has been disbursed, indicat- significant business and investment opportunity. The busi- ing capacity constraints in implementation while further ness-enabling environment needs to improve to attract increasing the funding gap for adaptation (Overland et al., private-sector investment, and public funding should aim 2022). Beyond capacity constraints, the ability of African to leverage private sector finance. countries to access international funding is complicated by complex and time-consuming fund structures and ap- Enabling policies and governance for adaptation plication processes (Omari-Motsumi and Schalatek, 2019; need to improve. Governance failures undermine the vi- Savvidou et al., 2021). In the 2017 analysis, much of the ability of local farming systems. The Working Group II re- funding received from the GCF went towards readiness port of the IPCC makes a strong case that enabling condi- preparation—this needs to shift to implementation. The tions and good governance of climate change adaptation GCF also made a commitment to fund NAPs. However, are crucial for success. Current governance in Africa has four years after the decision to support NAPs, only six been characterised by incoherent and fragmented; a lack African countries had completed their NAPs (Trisos et al., of community agency; gender inequalities; unaligned 2022). development and climate agendas; and elite capture of climate governance systems, among others (Trisos et Private sector finance is limited but represents a al., 2022). Maladaptation is another important theme in massive opportunity. Private sector finance is also prob- the IPCC report, with widespread cases of maladapta- lematic; only 17% of African mobilized private finance tion throughout the region (Simpson et al. 2023). Input is relevant for climate change (Trisos et al., 2020). The subsidies play an important role in food systems in many food economy already represents a substantial market countries in SSA, but farmers are, by and large, frustrated in Africa, projected to reach $1 trillion per annum by with the systems and the subsidies are often not contrib- 2030 (Byerlee et al. 2013; Balineau et al., 2021). Climate uting to climate change adaptation (JRT, 2022). There are and development funds are in the low billions and are opportunities to rethink how governments design and dwarfed by the private money in the food system. Thus, it deliver public support. Existing climate policies do not is essential to get local and national agricultural markets adequately consider risks of adverse effects across dif- 6 • DISCUSSION STARTER | SEPTEMBER 2023 Towards a vision for climate ferent stakeholder groups, trade-offs, adaptive limits and potential risks of maladaptation (Bezner Kerr et al., 2022). adaptation Financial governance can also be improved to better re- flect climate concerns. The Task Force on Climate-related Poverty is a cornerstone of climate vulnerability and Financial Disclosures (TCFD) is championing changes in climate change can trap households in a poverty the financial system (TCFD, 2019). cycle. Therefore, poverty reduction must be a fundamen- tal part of climate change adaptation efforts. Eighty-five Information availability, climate literacy and barriers percent of Africa's poor live in rural areas and mostly de- to track adaptation are limiting progress. Climate pend on agriculture for their livelihoods. There is massive literacy can shape the difference between coping and under-investment in rural areas; they need to be attractive informed adaptation. However, climate literacy remains at places to live and work, with good roads, schools, mar- very low levels in many countries (Simpson et al., 2022). kets, and internet accessibility. Information on many aspects of climate impacts and adaptation options is still missing—or if not missing—not African youth need to be a focus of action and en- reaching all stakeholders in useable forms. Continuing gagement. Seventy percent of the population of SSA is barriers have prevented developments in tracking adapta- under the age of 30. Including youth perspectives and tion and assessing adaptation actions and their outcomes engaging them in adaptation actions will be essential. (Berrang-Ford et al., 2019). If the ambition is to go beyond scoping and incremental adaptation to reach transfor- Visons for a climate-adapted future must recognize mational adaptation, it is crucial to better assess what ef- the differentiation of (rural) communities and food fective adaptation looks like. In addition, it is necessary to producers. Farming and other households in rural areas identify how unsuccessful adaptation policies and meas- have different assets, climate vulnerabilities and possi- ures might lead to various types of maladaptive outcomes bilities for adaptation. Women and men, young and old, such as: (1) increasing emissions of greenhouse gases, those close to and far from urban centers have different (2) disproportionately burdening the most vulnerable, (3) needs. For example, different adaptation visions are re- high opportunity costs, (4) reduce incentives to adapt, quired for (i) commercial farmers, (ii) emergent semi-com- and (5) path dependency (Reckien et al., 2023). mercial farmers, (iii) subsistence farmers, (iv) 'stepping-out' individuals and rural workers, including the landless, and Digitalisation is seen as a game-changer for African (v) urban and peri-urban farmers. Within these groups, food systems. The food system is characterized by many an additional diversity of livelihood strategies and needs inequalities in access to information, technologies and also exist. markets that digital agricultural innovations can help to solve (African Union, 2020; Ferdinand et al., 2021). The Commercial farmers are the group most likely to African Union (2022b) climate strategy places much have the resources to adapt. They number about 3 attention on digitalisation and climate-informed services. million in SSA (Steiner et al., 2019) and have greater However, many rural communities lack access to basic resource access than other groups. However, even for digital technologies (FAO, 2020). Still, access is not the them, extreme events and the slower term warming can only problem—farming households may have access to have major impacts. These can be countered through both digital devices and connectivity, but are not using climate-resilient infrastructure, enhanced early warning the available systems for a variety of reasons. systems, climate-informed advisories, and insurance mechanisms. Farm-level actions will include stress-tol- erant varieties, breeds and practices. Strong commodity groups with their own extension and research arms will be Dealing with structural barriers crucial for success. By innovatively linking the commercial sector with the semi-commercial sector—for example to poverty reduction is central through outgrower scheme—or with the subsistence to climate resilience and sector—through skills development and jobs—the soft and hard assets of the commercial sector can be harnessed to sustainable livelihoods enhance the climate resilience of the less endowed. 7 • DISCUSSION STARTER | SEPTEMBER 2023 For African agricultural ministries, a key stakeholder suggest that it will be exceptionally difficult to get the group will be the emergent semi-commercial farm- bulk out of poverty through agricultural development as ers, which can be an engine of growth. Households they lack the resources to produce surpluses (Harris et al., involved in semi-commercial activities number between 2021). In addition, any improvements in their situation will 10-20 million (Steiner et al., 2019). These farming house- be countered by the frequent extreme events that cause holds can change rural trajectories by being an engine loss of assets and a slide back into poverty. For these, of growth—growth that can drive increases in marketed social protection is crucial involving cross-sectoral collab- farm outputs and increases in employment opportunities. oration, including through health, education, agriculture, With an appropriate enabling environment and incentive and natural resources. If countries are successful in stim- system, private sector finance could be the engine of ulating investments in agricultural value chains, this will development. Needs will include those listed for com- create jobs: as input suppliers, infomediaries, commod- mercial farmers, but institutional reform and incentives are ity buyers, and insurance salespersons, among others. needed to get markets working for small farm sizes, for Social protection payouts can also be linked to achieving diversifying production, and for enhancing the availability climate action at scale. of credit and inputs. If markets can be sufficiently devel- oped, private sector commodity buyers and input provid- With rapid urbanization and changing diets, there ers will have incentives to ensure that resilient practices will be new opportunities for food system actors and and institutions are in place to secure their agricultural for farmers closer to urban areas. Urban and peri-ur- value chains. ban agriculture is an area of future growth. With the right urban governance and changes to urban land use policy, Social protection is crucial for subsistence farming subsistence farmers close to urban areas, even on small households while trying to transition households to plots of land, can transition into mass markets, like maize, semi-commercial farmers or to off-farm jobs. Subsist- or into new niche markets. For example, highly perishable ence farming households number between 30-40 million products such as milk and green leafy vegetables may be (Steiner et al., 2019) and are often remote from markets or best produced in peri-urban and urban areas. lack the resources to engage in markets. Several analysts A Kenyan farmer on her field. 8 • DISCUSSION STARTER | SEPTEMBER 2023 Investment and action priorities Accelerator Program will recruit the best companies and provide them the tools, networks and financial Priority 1: Driving private investment linked support for success. The Barka Fund identifies innovative to developing climate-resilient agrifood and impactful climate entrepreneurs, helps them build industries that source from smallholder sustainable ventures, and supports them to succeed. farmers Kickstart equips entrepreneurs with the irrigation tools to build climate-resilient businesses. In Rwanda, Africa Multiple dimensions related to investments in rural Improved Foods (AIF) provides an example of what development need changing, involving public and private is feasible, with massive investment in an agrifood sectors, and international and domestic funding. In this processing plant built on supply chains linked to first of four investment priorities, the focus is on what smallholders (Box 1). will be a trillion-dollar African food system by 2030, which will dwarf international climate and development Priority 2: Repurposing public support to funding flows. With rapid urbanisation and changing enhance resilience building diets, there will be new opportunities for food system actors—with the hope that the pathways are to vibrant The second investment priority focuses on national local and national markets, not imports from distant budgets and how they are deployed to incentivise food places. The next decade is a golden opportunity to system transformation and adaptation. In 2014 in Malabo, make this happen. If these pathways can focus on value African Heads of State adopted an agenda to accelerate chains with smallholder suppliers and can stimulate youth agricultural transformation. This included commitments entrepreneurship, this represents a massive opportunity to increase funding for agriculture, boost inter-regional for inclusive development. Governments can incentivize trade and enhance resilience. Unfortunately, targets will such development through, for example, repurposing not be met in most countries, given the current progress. public support (see Priority 2), providing good ease of At COP26, the Policy Action Agenda was launched, with doing business and promoting blended financing models. a number of African countries signing up. This includes Risks related to private sector investment, including land ‘repurposing public support’ under the narrative that, grabs and expropriation of smallholder lands, need to be in many countries, public support could be shifted to mitigated. achieve better outcomes for livelihoods and food systems (Gautum et al., 2022). It is positive that one of the four Early-stage investors have pumped more than $1 billion international axes in the African Union's (2022b) climate into African startups innovating for food systems in strategy focuses on strengthening national governance the last five years, but this represents less than 1% of and policy. global agrifood tech investment (AgFunder, 2022). There are many exciting new initiatives, also linked to Repurposing public support—which goes well beyond youth entrepreneurship. For example, Katapult's Africa purely climate-focussed policies—comes in many Box 1. Africa Improved Foods (AIF), Rwanda: stimulating smallholder production linked to agri- food industries One positive example of getting private sector finance into agricultural development is that of AIF in Rwanda. In collaboration with the Government, AIF addresses malnutrition and stunting in the country and the wider region by manufacturing high-quality, nutritious foods. These are produced with locally grown maize and soya beans, purchased from 130,000+ local smallholder farmers in Rwanda supplemented by imports of maize, soya and packaging from neighbouring countries, most importantly Uganda and Kenya. Production takes place in a factory in Kigali. The smallholder farmers are supported via technical assistance to increase their productivity and yield quality, and to access a secure market better. It is in the interest of the company to have climate-resilient supply chains, so it will work with the smallholder suppliers to ensure that. 9 • DISCUSSION STARTER | SEPTEMBER 2023 Box 2. Developing an approach to climate-smart agriculture in Zambia Improved Foods (Just Rural Transition, nd) Like other countries, Zambia is heavily impacted by climate change. Other challenges such as lack of finance, poor infrastructure, inadequate extension services and various policy measures have negatively impacted the food system and private sector investment. Farmers faced price disincentives, mainly from government market and trade interventions, in particular export bans. Set prices hindered producers from benefiting from price increases as the season progressed and blocked any opportunities to invest in storage. Public expenditure restrained crop diversification. The government is now trying to realign policies and programs and is implementing the Climate Smart Agriculture Programme, which focuses on diversification and climate-resilient crop varieties. The government has approved in principle the amendment of two pieces of legislation that look at sustainable agriculture related to plant varieties, and plant pests and diseases. Funds are being reallocated to increase irrigation. forms, for example: investing extensively in backbone Through this, OCP and MOFA are connecting farmers rural socio-economic public infrastructure and to financing and insurance, working with local extension services (roads, rail, transport, energy, water, health, agents to train them on, for example, proper fertilizer use. communication, education etc), giving greater attention Governments could also look to ways to incentivise green to public-private partnerships and blended finance; the fertilizer production and use. In Zambia, the government development of special processing zones to stimulate is in the process of policy change to incentivize climate- agrifood industries; incentivising agricultural finance smart agriculture (Box 2). and insurance, including credit guarantee schemes; developing mechanisms to provide more predictable Priority 3: Building climate-focussed markets; expanding climate-informed advisory systems; financial governance systems skills development with a special focus on women, youth and producer organisations; technical assistance for Climate change represents a massive risk to financial market development activities like digitization, training, systems, so this third investment priority focuses on and subsidies; improving tenure security. For example, financial governance. Investors and lenders need the African Development Bank is working in partnerships confidence in the banking system and companies that with governments to create Special Agro-Industrial climate-related risks are being assessed and managed. Processing Zones (SAPZs), aiming to provide world- Financial markets need high-quality information about class infrastructure that fosters competitive value chains financial risks and opportunities resulting from climate and transforms rural areas into zones of prosperity. The change, new climate-related technologies and emerging AIF example in Box 1 was developed in such a special policies. processing zone. The Task Force on Climate-related Financial Disclosures One key area where public support needs to be (TCFD) has played an important role in driving repurposed involves inorganic fertiliser subsidies. In governance changes. Disclosures are now recommended several countries, 50% or more of the Ministry of around (i) the company's governance around climate- Agriculture budgets go to input subsidies, mostly related risks and opportunities; (ii) how the company inorganic fertilisers. Still, without supplementary support identifies, assesses, and manages climate-related risks; to markets, extension, demand-driven research for and (iii) metrics and targets used to assess and manage development (R4D), fertiliser and seed quality control, relevant climate-related risks and opportunities (Carlin and irrigation this does little to improve farmer livelihoods, and Fischer, 2020; TCFD, 2017). Metrics could include national food security or climate resilience (Campbell the amount and extent of physical assets, or business et al., 2023). In Ghana, there is a joint initiative between activities vulnerable to physical risks, as well as the OCP and the Ministry of Food and Agriculture (MOFA) amount of capital expenditure, financing, or investment on the Agribooster Offer that provides farmers with deployed toward climate-related risks and opportunities, support for every aspect of the agricultural value chain. and towards emissions-linked targets. 10 • DISCUSSION STARTER | SEPTEMBER 2023 Box 3. European Bank of Reconstruction and Development (EBDR): integrating climate-related decision-making in financial systems The EBDR is engaged with one of its clients—Louis Dreyfus Company (LDC)—in a US$ 100 million transaction which will facilitate the expansion of LDC in eight eastern European and north African countries (Carlin and Fischer, 2020). The aim is to connect many small and medium-sized grain farmers and cotton ginners with LDC’s value chains. The project will also facilitate LDC’s adoption of an enhanced climate corporate governance approach in line with TCFD guidelines. This will include, for example, new methodologies and processes for assessing carbon transition risks and physical climate risks and new ways of integrating climate risk management into decision-making, for example through using climate scenarios to improve understanding of how climate change may affect crop yields. Box 4. Climate Resilient Green Economy Facility in Ethiopia Since its establishment in 2011, the Climate Resilient Green Economy (CRGE) Facility in Ethiopia has been mandated with mobilizing and accessing international climate funds for the implementation of the CRGE Strategy in Ethiopia. Through this direct access modality, the CRGE facility has managed over U.S. $190 million in international climate funds, including from the Adaptation Fund, The Green Climate Fund, and some bilateral developed partners. More than 13 projects have been implemented through this facility. The Ethiopian government encourages funders to use this direct access modality (‘channel one’). However, most funders still prefer to use the indirect access modality (‘channel two’), in which funds go through an international intermediary, like UNDP. For disclosure to be meaningful, what constitutes adaptation must be clearly defined so that the appropriate tagging can take place, and appropriate technical expertise needs to be engaged. The European Bank of Reconstruction and Development (EBDR) was the first multilateral development bank (MDB) to sign up for the TCFD initiative and, in 2021, established a dedicated team to do climate-risk assessments (Box 3). Priority 4: Enhancing direct access to international climate funds The fourth investment priority focuses on climate funds and on the need to get direct flows to countries rather than through intermediaries. The direct access modality represents a novel, empowering approach to funding on-the-ground adaptation actions. The Adaptation Fund initially introduced it to enable accredited national, regional, and local entities in developing countries to directly mobilize and access international adaptation funds without relying on intermediaries such as U.N. agencies and multilateral development banks. Approximately 39 developing countries have established Soil of farm land in Mali. ©2012 CCAFS / Francesco Fiondella national climate funds to directly mobilize and manage 11 • DISCUSSION STARTER | SEPTEMBER 2023 climate funds (Bhandary, 2022) (Box 4). Simultaneously, evidence suggests that digital breakthroughs are potential African countries should create a supportive environment game changers in African agriculture, the evidence also by establishing a National Designated Authority (NDA) as points to structural, social, and systemic barriers that limit the focal point for accessing multi-lateral climate funds greater use (Kudama et al., 2021). through direct access modalities. The NDA should also facilitate the formation of Direct Access Entities (DAEs) Structural barriers include limited rural infrastructure, within the country and ensure that relevant actors at all sparse connectivity, and lack of supporting services to levels, from national to local, are informed about available facilitate climate-anticipatory action. On the social side, international adaptation funding opportunities accessible digital services are skewed towards larger producers, through direct access modalities. Concerns related to men and women have different levels of access while capacity constraints, transparency, and accountability digital services often lack gender specificity (Gumucio issues observed in recipient countries must also be et al., 2020), and the provided services may not be addressed to enhance direct access facilities (Schalatek, locally tailored, context-specific or translated into local 2012; Adenle et al., 2017; Omari-Motsumi & Schalatek, languages. Systemic issues include insufficient funding 2019). for digitalisation in agriculture, inadequate investment in research and innovation, and a lack of agricultural Priority 5: Digital climate-informed entrepreneurship (FAO, 2020). Kudama et al. (2021) advisories and services illustrate that inadequate digital public infrastructure is an overarching policy challenge that results in a We turn to more technical game changers in the fifth host of interconnected issues including a high cost of and sixth priority. But even here, for these to advance, connectivity, regressive tax structures for digital services, creative business models and investment (Priority 1-4) and limited availability of the required digital financial services, supportive public policies (which is part of Priority 2) are and limited digital literacy. While connectivity itself may needed. not be an impediment, the cost of connectivity may ‘price out’ many would-be users in a situation. The fifth priority focuses on the digitalisation of the food system, and in particular climate-related advisories to Many of these barriers are being tackled. For example, farmers and other stakeholders, and associated digital feature phones equipped with interactive voice response services like insurance, and market information. "The (IVR) or Unstructured Supplementary Service Data (USSD) growing use of digital technologies, tools and services can help bring customised digital services and potentially is widely visible, including in the agriculture sector, and create more inclusiveness for women and marginalised will play a key role for African countries in meeting their communities. Increasing use of artificial intelligence targets on poverty reduction, food security and nutrition" (AI) can help answer context specific questions and (Malabo Montpellier Panel, 2019) (Box 5). Whilst the translation to other languages. However, the technical Box 5. Advancing digital food systems in Rwanda Rwanda demonstrates the commitment and drive towards digitalising the food system which fits with Rwanda's ambitious plan to be a higher middle-income country (World Bank and Government of Rwanda. 2020). Connectivity is good, with more than 90% of the population having access to 3G networks, and there are affordable handset prices (Malabo Montpellier Panel, 2019). It is one of the most popular African countries in terms of tech investors and has well-developed and coordinated ICT and innovation policies. It has established an ‘open technology hub’, a national data center, a soil information system, and an agricultural land information system. It has developed a network of local meteorological stations. Digital platforms such as e-Soko are being used to enhance climate-informed advisories. Amongst other services, this provides information in local languages on market and price information. If farmers don't have access to phones, they can use village phones (through extension workers) or use one of the 92 ICT centers countrywide. Solar-powered charging stations have been established. There are digital solutions for accessing credit and even blockchain is being used to track coffee value chains. 12 • DISCUSSION STARTER | SEPTEMBER 2023 advances must be matched by developing a supportive Priority 6: Farmer-led sustainable irrigation policy and institutional environment, as many barriers are to reduce reliance on climate-vulnerable not technical. rainfed production The multifaceted role of digital technologies in the The sixth priority relates to reducing climate impacts on agriculture value chain is lauded by Smidt and Jokonya rainfed cropping systems. Various water management (2022). They highlight how small-scale producers should technologies, like rainwater capture, can be used, but the be involved in defining system requirements; at the same ultimate solution is irrigation. Africa is woefully under- time, they suggest that lack of digital literacy is one of the irrigated compared to other parts of the world. Currently, primary barriers impeding adoption. That said, evidence irrigation is applied to less than 10% of arable land— is mounting that user-centred design of digital farmer despite plenty of evidence that sustainable irrigation can field schools is showing promise and digital tools can be be expanded over millions of hectares. Irrigation plays ‘scalable participatory extension and training models’ a vital role in extending the growing season beyond the (Osumba et al., 2021). Youth engagement and youth rainy season. This enables farmers to cultivate multiple entrepreneurship can be important for dealing with digital crop cycles throughout the year, effectively utilizing their literacy. land and maximizing agricultural output. Particularly in regions prone to droughts, irrigation provides a Taking digital solutions to scale invariably involves a dependable water source that sustains crop growth set or network of complementary partners rather than during dry periods. As such, it acts as a buffer against the a single provider acting largely independently. There negative impacts of droughts and climate variability. This are often organisations with much greater potential becomes increasingly crucial in Africa, where droughts for positive impact in the areas of climate resilience, have been occurring with higher frequency and severity poverty reduction and food security but that lack (Simpson et al., 2023). access to financial opportunities and/or knowledge and experience with digital solutions. Through partnerships, To counter these threats, governments are setting these limitations can be overcome. Bundled services— ambitious goals to expand irrigation and enhance such as climate-informed advisories complemented by farm productivity, but these are often large-scale insurance, market, or input services—often have higher government schemes that have been mired by engagement and greater benefits, demonstrating the operational, governance and sustainability challenges need for partnerships (Ferdinand et al, 2021). In Ghana (Wiggins and Lankford, 2019). Farmers are taking matters and elsewhere, e-extension services are being expanded into their own hands by driving irrigated agriculture's by consortia of government agencies, diverse civil society establishment, improvement, and expansion (Izzi et organisations and the private sector. al., 2021). The significance of this approach, known Box 6. Ugandan smallholder farmers lead climate adaptation through irrigation The expansion of irrigation is a priority for Uganda. Less than 100.000 ha are irrigated while the National Irrigation Policy sets an ambitious target of 1.500.000 ha by 2040. A fifth of Ugandan farmers are keen to transition to market-orientated production, and water is one of the constraints that need to be dealt with. Transportation costs are high, with irrigation equipment costs being 30%- 50% higher than in neighbouring Kenya due to low sales volumes, importation tariffs, and logistical challenges. The government has created a more favourable enabling environment through partial subsidies and enhanced access to knowledge. A digital farmer registration and advisory system has also been established, with intensive online training for circa 1,000 government field personnel. Irrigated tomatoes, South Africa. ©2021 E.L.S.K.E Photography / IWMI 13 • DISCUSSION STARTER | SEPTEMBER 2023 as farmer-led irrigation development (FLID), has been by, for example, regulating water use and rights and recognized only in the last two decades. Governments conflict mediation. For success, irrigation needs to go and the development community have acknowledged hand-in-hand with greater availability and accessibility the extensive areas adopting this grassroots approach, to rural infrastructure, such as roads and storage, as well revealing numerous untapped opportunities for farmers as agricultural inputs. The first irrigators tend to be the to take the initiative in irrigation. better-off and male, and thus, social equity issues need to be addressed (Wiggins and Lankford, 2019). However, farmers' actions are constrained, particularly for smallholders, due to an unfavourable environment, Solar-based irrigation development is particularly especially when it comes to interacting with the private attractive given the falling prices of solar energy, its sector. Securing financial support from institutions to contribution to low-emissions development and its improve farming businesses and access suitable irrigation potential to alleviate energy poverty (Pavelic et al., 2021). technology is challenging. Additionally, weak market In India, some farmers now have an additional income linkages pose further difficulties. External actors can source through selling excess energy to the national facilitate development through i) innovative financing as grid, which also provides an incentive to use the excess upfront costs are high, ii) knowledge development in the energy as an income source rather than over-pumping form of awareness-raising, agricultural advisories and groundwater (Lefore et al., 2021). skills development, and iii) facilitating water governance A farmer collecting coffee cherries, East Africa. Box 7. Ethiopia's Productive Safety Net Program The Productive Safety Net Program in Ethiopia was launched in 2005 to provide food and financial support to beneficiaries in exchange for public works. This has benefitted nearly 10 million farming households, covering nearly a million hectares. A core part of the program is participatory integrated watershed management and rehabilitation of degraded ecosystems both on farms and in the broader landscape. It has had positive livelihood, ecosystem, and agricultural outcomes (Cochran and Tamiru, 2016). Apart from public sector schemes, there are also traditional social protection measures. For example, traditional social insurance mechanisms help communities cope with extremes and disasters. In Iddir in Ethiopia, a community-based voluntary association provides economic and social insurance during times of death and other misfortunes. Such mechanisms are built on widely acknowledged principles of moral responsibility, trust, and reciprocal relationships, placing a substantial obligation on community members to foster collective action (Aredo et al. 2010; Stavropoulou & Jones, 2017). The role of such traditional mechanisms needs to be recognized in adaptation policy-making and effectively utilized in conjunction with other public programs to enhance the adaptive capacity of smallholder farmers. 14 • DISCUSSION STARTER | SEPTEMBER 2023 Priority 7: Creative social protection to Social protection could include diverse activities, tailored transition households out of poverty and to context, such as weather-index insurance and other climate vulnerability insurance schemes; national school feeding programs; cash-based or asset-based safety net programs; public The seventh priority is an uncomfortable one for many works programs; labour market programs; and capacity of those in the development sector, as it recognises that strengthening. Anticipatory action is crucial, so these agriculture will not be a pathway out of poverty for many social protection activities should go together with smallholders and other rural dwellers. Several studies early warning systems and climate-informed advisories. indicate that farm sizes are too small, assets are limited Intermediate objectives could include the following: and/or farms are too distant from markets for agriculture to provide sustainable livelihoods to a large portion • Building community agricultural assets; for example of rural households (Marinus et al., 2023; Harris et al., through public works programs that protect catchments 2021). As poverty and vulnerability to climate change are and enhance soil health intricately connected (Thornton et al., 2019), this issue • Building individual agricultural assets; for example must be addressed. Social protection can help in this through in-kind transfers regard and is recognized as an important component • Reducing the sale of assets during droughts; for of the climate strategy of the African Union (2022b). example through insurance By building agricultural assets and capabilities, social • Diversifying livelihoods and/or production systems as protection can help in shifting households into resilient an adaptation strategy livelihood-sustaining agricultural production (stepping up) • Advancing rural entrepreneurship or, by building new skills, it can help shift households out • Increasing demand for smallholder produce; for of agriculture into other productive livelihoods (stepping example through school feeding programs that source out). Stepping out includes recognising that mobility and ingredients from smallholders migration are valid adaptation options (Zougmore et al., 2023). Conclusion and systemic levers to achieve impact The adaptation challenge is immense and current efforts There are several systemic levers to ensure impact. These are insufficient. We have proposed seven key areas for include: dealing with the structural challenges related investment and action. These are not mutually exclusive; to gender and social inclusion; building on Indigenous in fact, many need to be implemented together. Taking and local knowledge and promoting community- and sustainable irrigation as an example, almost all the other farmer-led approaches; ensuring youth engagement and priorities come into play. Those with few agricultural employment; facilitating multi-stakeholder innovation assets will need social protection in the same farming platforms; having demand-driven solid research; and, landscape where irrigation is implemented. For irrigation ensuring that high-quality data and information is easily to be economically sustainable, attention needs to be accessible so that adaptation can be science-based. given to strategic financial investments that help cover Achieving transformative adaptation action at scale will upfront costs and build markets for the outputs from require coordinated work and interventions in many irrigated production. Digital services to irrigators will dimensions. The seven priorities highlighted in this paper enhance production and marketing, and digital services provide a starting point. can also reduce the costs of social protection transfers. 15 • DISCUSSION STARTER | SEPTEMBER 2023 References Adenle, A. A., Ford, J. D., Morton, J., Twomlow, S., Alverson, $100 billion climate finance commitment and transforming K., Cattaneo, A., ... & Ebinger, J. O. (2017). Managing climate climate finance. Independent Group on Climate Financing change risks in Africa-A global perspective. 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Cambridge, UK, Cambridge University Press. 18 • DISCUSSION STARTER | SEPTEMBER 2023 CLIM-EAT.ORG SEPTEMBER 2023 About the authors 1 Clim-Eat, Global Center on Adaptation & University 13 International Livestock Management Institute of Copenhagen 14 Southern African Confederation of Agricultural 2 AGRA Unions 3 Farmerline, Ghana 15 World Vegetable Center and Université Nationale 4 Global Center on Adaptation d’Agriculture du Benin 5 Forum for Agricultural Research in Africa 16 CSIR - Science and Technology Policy Research 6 Novo Nordisk Foundation Institute, Ghana 7 International Water Management Institute 17 University of Notre Dame 8 Wageningen University and Research 18 Alliance of Bioversity International and CIAT 9 Quadrature Climate Foundation 10 Global Center on Adaptation 11 Farmers Union of Malawi The views in this article are those of the authors and do 12 Bill and Melinda Gates Foundation not reflect the views of the institutions they represent. Suggested citation Acknowledgements Campbell BM, Sene A, Attah A, Ajay O, Fatunbi Support to DS, RK and RZ was provided through W, Halloran A, Jacobs-Mata I, Kidane R, Matsika Accelerating Impacts of CGIAR Climate Research for R, Nyambura M, Nyirongo J, Prager S, Solomon D, Africa (AICCRA). It is supported by a grant from the Sunga I, Totin E, Williams PA, Winters P, Zougmore International Development Association (IDA) of the R (2023). Advancing climate change adaptation in World Bank. Thanks to Sharai Mpofu for comments on African food systems: Seven key priorities for action a draft. on adaptation. Discussion Starter: 5. Wageningen, the Netherlands: Clim-Eat. 19 • DISCUSSION STARTER | SEPTEMBER 2023