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‘Carbon loans’ offer win-win for climate, farmers

12 Aug 2022
The upcoming Senegal summit is a follow-up to the 2015 inaugural edition during which the “Feed Africa” strategy for Agricultural Transformation (2016-2025) in Africa was proposed. Photo: Supplied/FoodForAfrika.com

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    The upcoming Senegal summit is a follow-up to the 2015 inaugural edition during which the “Feed Africa” strategy for Agricultural Transformation (2016-2025) in Africa was proposed. Photo: Supplied/FoodForAfrika.com

    Food production summit to open in Senegal

    Tomato losses: Solar-powered cold storage technology is of prime significance in Africa’s efforts to cut post-harvest tomato losses and attain food security, as outlined in the African Union Malabo Declaration. Photo: Supplied/FoodForAfrika.com

    Tanzania’s tomato harvest goes to waste

    Contextually, an average cow yields about 10 kilograms of dung per day, which corresponds to 1 000 litre biogas, equivalent to 2.14 kWh (electricity) while 1 000 litres of biomethane equals 10 kWh. Photo: Supplied/FoodForAfrika.com

    Biogas: ‘Cow dung can keep the lights on in SA’

    The Maputo Port is one of a number of harbours on the continent undergoing a changes to ready it for expansion. Photo: Wikicommons Media/Supplied

    ‘Ports race’ in Africa cuts both ways

    Mohamed Dhicis (19) started a beekeeping business in his hometown of Belet Weyne, in central Somalia. He is supported by an entrepreneurship develop programme of the United Nations Industrial Development Organization (UNIDO) in collaboration with the Somali Ministry of Commerce and Industries. Photo: Supplied/United Nations

    Bees and tractors: Agri leads the way in Somalia

    “EOS_SAT-1 is already fueled, configured for launch and integrated onto the upper stage of the rocket, waiting for the last remaining thing ¬– launch.” This notice and picture was posted on the Twitter page of aerospace start-up Dragonfly Aerospace. Photo: Twitter

    African agri satellite a world first

    Women attend a UNFPA-supported integrated community health outreach session on prevention and response to gender-based violence. Lokapararai village, Turkana county, Kenya. Photo: Supplied/UNFPA Kenya

    Drought puts Kenyan newborns at risk

    Child labour has increased exponentially over the course of the past four years, according to UNICEF and ILO. Photo: Wikkimedia Commons

    ‘Children exploited’ on Malawi tobacco farms

    5 ways tech is transforming agrifood systems

    5 ways tech is transforming agrifood systems

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    Namibia's Popular Democratic Movement party has tabled a motion of insurance for farmers, that will compensate for the loss of livestock due to conflict with wildlife. Photo: Supplied/Food For Mzansi

    Computer model to ease farmer-wildlife conflict

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    Meet Malawian chocolate maker Wezi Mzumara

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  • Home
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    The upcoming Senegal summit is a follow-up to the 2015 inaugural edition during which the “Feed Africa” strategy for Agricultural Transformation (2016-2025) in Africa was proposed. Photo: Supplied/FoodForAfrika.com

    Food production summit to open in Senegal

    Tomato losses: Solar-powered cold storage technology is of prime significance in Africa’s efforts to cut post-harvest tomato losses and attain food security, as outlined in the African Union Malabo Declaration. Photo: Supplied/FoodForAfrika.com

    Tanzania’s tomato harvest goes to waste

    Contextually, an average cow yields about 10 kilograms of dung per day, which corresponds to 1 000 litre biogas, equivalent to 2.14 kWh (electricity) while 1 000 litres of biomethane equals 10 kWh. Photo: Supplied/FoodForAfrika.com

    Biogas: ‘Cow dung can keep the lights on in SA’

    The Maputo Port is one of a number of harbours on the continent undergoing a changes to ready it for expansion. Photo: Wikicommons Media/Supplied

    ‘Ports race’ in Africa cuts both ways

    Mohamed Dhicis (19) started a beekeeping business in his hometown of Belet Weyne, in central Somalia. He is supported by an entrepreneurship develop programme of the United Nations Industrial Development Organization (UNIDO) in collaboration with the Somali Ministry of Commerce and Industries. Photo: Supplied/United Nations

    Bees and tractors: Agri leads the way in Somalia

    “EOS_SAT-1 is already fueled, configured for launch and integrated onto the upper stage of the rocket, waiting for the last remaining thing ¬– launch.” This notice and picture was posted on the Twitter page of aerospace start-up Dragonfly Aerospace. Photo: Twitter

    African agri satellite a world first

    Women attend a UNFPA-supported integrated community health outreach session on prevention and response to gender-based violence. Lokapararai village, Turkana county, Kenya. Photo: Supplied/UNFPA Kenya

    Drought puts Kenyan newborns at risk

    Child labour has increased exponentially over the course of the past four years, according to UNICEF and ILO. Photo: Wikkimedia Commons

    ‘Children exploited’ on Malawi tobacco farms

    5 ways tech is transforming agrifood systems

    5 ways tech is transforming agrifood systems

  • Changemakers
    • All
    • Agribusiness
    • Agripreneurs
    • Farmers
    • Innovation
    Namibia's Popular Democratic Movement party has tabled a motion of insurance for farmers, that will compensate for the loss of livestock due to conflict with wildlife. Photo: Supplied/Food For Mzansi

    Computer model to ease farmer-wildlife conflict

    It started with a handful of trees on her family farm. Today Wezi Mzumara is breaking new ground as a woman chocolate maker in Malawi. Photo: Supplied/FoodForAfrika.com

    Meet Malawian chocolate maker Wezi Mzumara

    Nature-based biopesticides are now offering a safer alternative to locust control. ©FAO/Ismail Taxta/Arete

    Locusts: How Somalia became biopesticides leader

    The award-winning Nigerian farmer Samson Ogbole, who did not initially want to be a farmer, incorporates technology, science and agriculture to end hunger.

    Meet ‘Farmer Samson’, biochemist and soilless farmer

    What started as an informal Facebook group has become a vibrant online market community in East Africa called Mkulima Young.

    East Africa’s vibrant digital one-stop for farmers

    Greenify Global, a youth environmental conservation movement, works in schools in Zomba, Malawi, teaching children and creating food gardens according to permaculture principles. Photo: Supplied/FoodForAfrika.com

    Malawi permaculture project teaches earth care

    Woman Farmer Kerotse Lekabe (middle) with her workers in Pella, North West, where she farms with vegetables on six hectares of land. Photo- Supplied/FoodForAfrika.com

    Woman farmer’s drive builds family business

    Support to improve women land ownership delivers life-changing benefits for women farmers in Tanzania, like Mariam Tungu, from Singida’s Ikungi district in central Tanzania. Photo: Supplied/FoodForAfrika.com

    Women land ownership changes destinies

    Planting his first crops was like throwing dice for Lesotho small-scale farmer Leutsoa Khobotlo. He felt like he won that game of chance. Photo: Supplied/FoodForAfrika.com

    Luck and dedication lifts Lesotho farmer

  • Food Security
    • All
    • Climate Change
    • Crops
    • Food Trends
    • Logistics
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    Climate change ‘a daily reality’ for Africans

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    Cop27: Zambian farmer demands food systems change

    With heavier and unpredictable rainfall and tides encroaching on coastal cities, the risk of flooding is becoming more prevalent. Through an FAO project, local communities in Quelimane, Mozambique have restored 1.6 hectares of mangroves to prevent flooding and soil erosion. Photo: Supplied/Mani Tese/Leonel Raimo

    Green city living changes Africa’s urban landscape

    Perennial rice being harvested near Lake Victoria in Uganda. Photo: Supplied/FoodForAfrika.com

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    The global FoodTech Challenge is looking to reward 4 agritech or foodtech companies working to address food security challenges. Photo: Supplied/FoodForAfrika.com

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    Insect-rearing requires minimal access to land and feed, providing income and livelihood opportunities for many in rural and urban communities. Left/top: Photo: FAO/Giulio Napolitano

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    Hunger and malnutrition in the Lake Chad Basin have reached alarming levels this year, driven by Boko Haram terrorism and the effects of climate change.

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  • Lifestyle
    • All
    • Food Health
    • Trends
    A picture featuring George Chiwedzerero, who left Zimbabwe for South Africa and was not heard from for two decades.

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    The general impression of Zanzibar when approached from the mainland is of a long, low island with small ridges along its central north–south axis. Coconut palms and other vegetation cover the land surface. Photo: Supplied/FoodForAfrika.com

    Here’s how farming transformed Zanzibar’s coastline

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    There are a number of flowering plants that we do not often recognise the holistic health benefits of, such as okra, kalanchoe and periwinkle flowers. Photo: Supplied/FoodForAfrika.com

    Healing with the help of Africa’s indigenous plants

    Burger King is one of many fast food franchises that is introducing more plant-based meals. Photo: Supplied/FoodForAfrika.com

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    Cassava is one of the continent's food staples. Here is a history on the root veg and its humble beginnings. Photo: Supplied/FoodForAfrika.com

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    Herbal remedies are commonplace in Uganda; testing these scientifically is a good way to ensure they’re safe and effective. Photo: Supplied/FoodForAfrika.com

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    Researchers believe that Rwanda's soft drink tax can be better used to boost public health by targeting sugar content. Photo: Supplied/FoodForAfrika.com

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    Lebanese farmers have shirked using chemicals during the goring process and are realising their produce is healthy regardless. Photo: Supplied/FoodForAfrika.com

    Lebanese potato farmers find that less is more

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‘Carbon loans’ offer win-win for climate, farmers

by Staff Reporter
12 Aug 2022
in Agri News
Reading Time: 3 mins read
A A
Maurício Uchôa Bruttos

Agroforestry is a climate resilient and sustainable agricultural practice where woody perennials are planted in among fields and pastures. Photo: Maurício Uchôa Bruttos

A Dutch multinational banking services company and a UK-supported, Nairobi-based non-profit is teaming up to encourage farmers to adopt climate resilient farming practices. They are doing this by providing “carbon loans” and developing a new financial instrument that can give smallholders access to the international carbon market.

The project aims to encourage and fund small-scale farmers in Africa to adopt the sustainable and climate resilient farming practice of agroforestry, interspersing their fields and pastures with plantings of woody perennials. 

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Through remote sensing technology the project will monitor and catalogue the “carbon removal units” (CRUs) that result from the trees storing carbon as they grow. These units can then be traded in carbon credit markets.

Mark Napier, FSD Africa Chief Executive Officer
Mark Napier, FSD Africa Chief Executive Officer

The collaboration between FSD Africa and Rabobank ACORN / Rabo Foundation aims to benefit between 3000 and 5000 smallholders in Kenya, Nigeria and Tanzania. Acorn – Agroforestry Carbon removal units for the Organic Restoration of Nature – has the ambition to reach 1 million farmers all over the globe by 2025.

Via local implementation partners, Acorn supports the initiation and development of agroforestry projects and facilitates the subsequent trade of the CRUs that are generated from the sequestered carbon, earning farmers an extra source of income. 

The biomass created from CO2 as the trees grow will be measured on a smallholder farmer’s land with the help of remote sensing technology, such as satellite imagery.

Lending against future tree growth

FSD Africa together with Rabo Foundation will provide finance to the small-scale farmers to help them transition to sustainable agroforestry. The local implementation partners will collect the farmer data and onboard the farmers onto the Acorn platform. 

The farmers will then be able to sell CRUs to corporate off-takers through Acorn’s technology-enabled marketplace. The proceeds of the CRUs will be used to pay back the loan. For FSD Africa as the financier, testing this innovative finance structure will be an important outcome of this first scale phase.  

“The Acorn program has a great potential for improving farmers’ income through the sale of carbon credits and other income from the agroforestry project, commented FSD Africa chief executive officer, Mark Napier. “It will create green jobs, address vulnerability by improving food security and by all those means will lead to the poverty reduction.” 

The pilot projects will see the disbursement of carbon loans to allow smallholder farmers to invest in their farms and transition towards agroforestry. The loans will be repaid by the farmers using future income generated by the revenue generated by the sale of carbon credits. From the sales revenue, 80-90% will flow back to the farmer.

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In the second phase of the program will hopefully see a potential capital market instrument being set up based on the results of the pilot projects. This instrument could help the program expand and provide much-needed access to finance for small-scale farmers who want to invest in their farms to adopt sustainable agricultural practices. 

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“Using the proceeds of the carbon removal units for repaying the loan, we have introduced an innovative financial solution that has the potential to create a paradigm shift in financing rural development,” said Jelmer van de Mortel, Head of Acorn.

ALSO READ: Climate resilience found in African ‘orphan crops’

Tags: Climate ChangeFinancingKenyaNigeriaZambia
Staff Reporter

Staff Reporter

Researched and written by our team of writers and editors.

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Agri News

Food production summit to open in Senegal

by Staff Reporter
18 Jan 2023
0

African heads of state and government together with development partners will gather in Senegal to strategically map plans to unlock...

Read more
Tomato losses: Solar-powered cold storage technology is of prime significance in Africa’s efforts to cut post-harvest tomato losses and attain food security, as outlined in the African Union Malabo Declaration. Photo: Supplied/FoodForAfrika.com

Tanzania’s tomato harvest goes to waste

16 Jan 2023
Contextually, an average cow yields about 10 kilograms of dung per day, which corresponds to 1 000 litre biogas, equivalent to 2.14 kWh (electricity) while 1 000 litres of biomethane equals 10 kWh. Photo: Supplied/FoodForAfrika.com

Biogas: ‘Cow dung can keep the lights on in SA’

14 Jan 2023
The Maputo Port is one of a number of harbours on the continent undergoing a changes to ready it for expansion. Photo: Wikicommons Media/Supplied

‘Ports race’ in Africa cuts both ways

10 Jan 2023
Namibia's Popular Democratic Movement party has tabled a motion of insurance for farmers, that will compensate for the loss of livestock due to conflict with wildlife. Photo: Supplied/Food For Mzansi

Computer model to ease farmer-wildlife conflict

5 Jan 2023

Food production summit to open in Senegal

Tanzania’s tomato harvest goes to waste

Biogas: ‘Cow dung can keep the lights on in SA’

‘Ports race’ in Africa cuts both ways

Computer model to ease farmer-wildlife conflict

Bees and tractors: Agri leads the way in Somalia

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