Funding climate adaptation of smallholder farmers using e-vouchers in Kenya
Aligned SDGs
- Funding climate adaptation of smallholder farmers using e-vouchers in Kenya
- General overview
- Intervention
- Location
- Last data update
- Spreadsheet of data
- Funding climate adaptation of smallholder farmers using e-vouchers in Kenya
- General overview
- Intervention
- Location
- Last data update
- Spreadsheet of data
General overview
Stage of development: Late stage
Policy sectors: Environment and climate change
Type of instrument: Social Impact Incentives (SIINC)
Delivery locations: Kenya
Country classification: Lower-middle-income
Intervention
Social or environmental challenge
The program addresses several market failures that hinder the effective implementation of outcomes-based financing (OBF) for climate adaptation among smallholder farmers.
Firstly, traditional financial institutions often perceive smallholder farmers as high-risk borrowers, resulting in limited access to debt financing despite their critical role in food security and climate resilience. Secondly, inadequate data and metrics to measure and verify climate adaptation outcomes create uncertainty for investors, hampering funding opportunities. Thirdly, the absence of tailored financial products and risk-sharing mechanisms further discourages investment in climate-smart initiatives. Lastly, the lack of coordination and collaboration among stakeholders in the OBF ecosystem limits the scalability and impact of climate adaptation projects.
By addressing these market failures, the program aims to unlock funding and drive positive change in the agriculture sector, promoting climate resilience and sustainable development.
Description of the intervention
The Pepea Capital's climate adaptation project aims to revolutionize financing opportunities for 400 smallholder farmers in Kenya, fostering climate resilience in vulnerable communities. Through their Outcomes Accelerator platform, Pepea Capital collaborates with Ministry of Agriculture in Kenya, investors, and service providers, to address market barriers and unlock funds for outcomes-based financing initiatives. The project targets the pressing need for climate adaptation among 400 smallholder farmers, who face increasing challenges.
By leveraging debt financing, the project seeks to empower smallholder farmers with access to essential resources and technologies that enhance their ability to adapt to climatic uncertainties. The desired outcomes include increased climate resilience, improved agricultural productivity, and enhanced livelihood opportunities. The initiative aims to promote sustainable land management practices, encourage the adoption of climate-smart agricultural techniques, and strengthen local value chains and markets.
Through careful monitoring and evaluation, the project aims to demonstrate the positive impact of outcomes-based financing on climate adaptation and the potential for replication and scaling in other regions. By fostering collaboration among stakeholders, Pepea Capital's project strives to create lasting change, contributing significantly to the achievement of Sustainable Development Goals and ensuring a more sustainable and resilient future for smallholder farmers and the broader community.
Location
Country:
- Kenya
Locality:
- Kenya
Last data update
Data for this pipeline project was last updated in August 2023
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Spreadsheet of data
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