The De-risking Agricultural Finance to Smallholder Farmers (DAFS) project is proposed to support activities that will facilitate access to credit by smallholder farmers and enhance their engagement with agricultural value chains. The initiative will pilot and upscale a climate insurance technology to facilitate the development of comprehensive de-risking financing mechanisms in 4 pilot countries (Tanzania, Ghana, Uganda and Zimbabwe). Four inter-linked components are proposed for the project: (i) research and development of the WINnERS computer technology, focusing on improving the accuracy of risk estimation; (ii) development of blended credit guarantee and insurance products in each country; (iii) capacity building of the key institutions partnering in each of the target countries to ensure adoption and up-scalability of the technology and products introduced; and (iv) management and coordination of project activities, stakeholders, technical experts. The initiative will support key financial institutions in target countries to integrate the new technology that will facilitate agricultural insurance and inputs credit to smallholder farmers whilst linking them to the market sustainably. DAFS will minimize disruptions in agricultural supply chains that are caused by climate-related events such as drought, and unlock investments at scale. It is to be implemented over three (3) years with co-financing of complementary activities by key partners. Total cost of implementing the pilot is USD 3.58 million, including USD 980,000 from FAPA Trust Fund.

International

African Development Bank Group

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Construction Agriculture-Food and Beverages Energy-Power and Electrical Computer Hardwares and Consumables Marine

04.06.2019

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