This archive report was first published on 3 November 2021.
Nairobi, Kenya, November 1, 2021, marked the launch of Africa's first climate adaptation credit facility for agriculture, ADAPTA, with a funding of USD 1.5 million from the Bill & Melinda Gates Foundation for Phase I.
ADAPTA aims to develop and test an innovative loan underwriting platform that incorporates agricultural technologies and climate-smart agriculture. The facility plans to use climate scoring algorithms to transform how banks and investors assess agricultural risk, unlocking financing for farmers and Agri-SMEs.
ADAPTA is partnering with the Alliance of Bioversity International and CIAT, part of the CGIAR, to develop and test a Climate-Smart Module (CSM) and an agriculture risk management framework. The CSM will leverage satellite-derived and other data sets to assess risk and identify adaptation options within value chains.
ADAPTA's Principals, German Vegarra and Madleine Mwithiga, bring deep knowledge in agribusiness finance and years of experience developing and launching innovative initiatives. Vegarra stated, 'We hope ADAPTA's CSM can transform sustainable finance the same way credit scores and credit ratings transformed consumer and corporate finance.'
ADAPTA plans a global Phase II in 2023 focusing on Africa, Asia, and Latin America. The facility is also partnering with USAID's Kenya Investment Mechanism to mobilize local financial advisors and strengthen their sustainable finance expertise.
Read the original article on Capital FM.
