Transforming Capital for Agriculture Adaptation

Exhibitor

Tiserin Capital Management Ltd

https://www.tiserincapital.com/

https://www.adapta.earth/



Team

German Vegarra


Location

Nairobi | Kenya

Summary

ADAPTA.EARTH

Disrupting how capital assesses and manages climate change and sector risks is key to help producers adapt to climate change.  All support (i.e.; technology, capital, and capacity) given to farmers, while positive, hardly makes a dent on the actual need because access to finance remains the achilleas heel of the sector.  In Kenya, only 5% of total loans go to the sector.  The number in neighboring countries is worst.   A paradigm shift is required to transform the agriculture sector's risk-return profile and increase financing available for adaptation. Part of the solution lies in filling information gaps to support both the assessment and management of weather and climate risk in the sector. ADAPTA will become Africa’s first climate adaptation credit facility directed to the agriculture sector.  It seeks to transform the way lenders and investors assess the sector's risks by introducing weather and climate data, Ag-technologies, soil, and hydrology assessments, etc., to develop climate scores and adaptation plans that can help ADAPTA and other commercial banks make informed credit decisions and proactively manage agriculture portfolios for climate resilience.  The same way credit scoring algorithms transformed consumer and corporate finance globally, ADAPTA’s climate scoring algorithms, supported by these new technologies, may unlock millions of dollars for climate-smart agriculture.


In brief - What will we do? 

Tiserin Capital, One CGIAR, and USAID's Kenya Investment Mechanism (USAID-KIM) have joined forces to develop and launch ADAPTA, the region’s first climate adaptation credit facility directed to the agribusiness value chain.   This innovative credit facility seeks to strengthen producers’ and Agri-SMEs' financial standing and expansion plans but, just as importantly, enhance their climate resilience. ADAPTA plans to use an innovative structure that combines blended finance and a climate-smart model (CSM) to address adaptation finance barriers. A US$3Mn Phase I involves the following components, focused on development and testing of the climate-smart model, which will be central to a Phase 2 US$20Mn+ adaptation fund, and will become a global public good for wider benefit.  Phase I will target Kenya:

Component 1: Develop and test CSM with One CGIAR and other partners 

  1. Climate scorecard.
  2. Climate due diligence.
  3. Climate adaptation plan.
  4. Climate portfolio management.

Component 2: Structure ADAPTA's delivery models through three to six projects in collaboration with USAID Kenya-KIM.

Component 3: Test outcomes and develop recommendations.

  1. Test gender, SDGs, and climate-smart ag outcomes.
  2. Refine tools and recommendations for phase II.

Phase I will develop the CSM, support One CGIAR and TCA infrastructure, and test ADAPTA in 3-6 projects. Once tested, ADAPTA's CSM will be accessible to local commercial banks and investors to increase lending and investment into the agriculture supply chain. 

Presentation

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Videos


Further information

There is a longer word version.  Please contact german@tiserincapital.com

Partnerships

Clients / Target group

Who will benefit from this work?

The ADAPTA pilot will support smallholder farmers (<5 acres) and Agri-SMEs in Kenya by providing the right type of lending solutions together with climate adaptation solutions that reduce their risk profile and enable them to invest and raise their profitability. Women, youth, and vulnerable rural farming communities will be targeted to improve their farms' resilience and productivity.

Financial institutions will also benefit from ADAPTA's innovative credit assessment and climate scoring model. ADAPTA will make its novel climate and credit underwriting process publicly available to commercial banks and non-bank financial intermediaries so that they can proactively manage risks and lend more to the sector. If risks can be managed more effectively, the share of loans to the agriculture sector in East Africa should rise (currently less than 5% of total bank loans).

 

Established collaborations and partnerships

One CGIAR to co-develop Climate Smart Module and USAID-Kenya Investment Mechanism for credit due dilligence

A globally recognized foundation has approved US$1.5Mn to launch Phase I


Desired collaborations and partnerships

Foundations, development institutions or research centers interested in promoting innovation in climate adaptation for agriculture. We are looking for grant support of US$1.5Mn to expand Phase I.

 

Time for discussion (Video Chat)

During the indicated periods, one of the team members is available for a chat.


Stand NoTime zone+/-UTC

Date

Start local time (hh:mm)

Duration (hh:mm)Attendant

Video chat link

126
3





https://meet.lax.init7.net/4p1000stand126
126
3



https://meet.lax.init7.net/4p1000stand126
126
3



https://meet.lax.init7.net/4p1000stand126

Events


Stand NoTime zone+/-UTC

Date

Start local time (hh:mm)

Duration (hh:mm)Description

Video link

126CET3

 

10:0011:00ADAPTA.EARTHClick here to join the meeting
126CET3

 

10:0011:00ADAPTA.EARTHClick here to join the meeting


1 Comment

  1. The initiative is very good and attractive.  Please visit our stands number 058 and 059 and see where we can collaborate.