The urgent need for farmers to adapt to the changing climate was a central theme during a panel discussion at the African Agri Investment Indaba recently held in Cape Town. Experts from across the agricultural and environmental sectors emphasized that effective climate adaptation strategies are critical for ensuring food and water security in Africa.
The Divide Between Climate Mitigation and Adaptation
A significant disparity exists in global climate finance allocation, with only 5% directed toward adaptation efforts, while the majority focuses on mitigation. Hayden Aldredge, senior manager at ISF Advisors in the US, noted that the private sector accounts for only 5-10% of adaptation funding for African smallholder farmers and agri-businesses.
Aldredge highlighted the economic urgency of adaptation, estimating the annual cost of addressing climate risks at $15 billion (R270 billion). Ignoring these risks could cost up to $200 billion (R3.6 trillion) annually. He stressed that improving data availability and leveraging technologies like remote sensing, analytic tools, and digital platforms can lower risks for private investors and commercial banks, enabling more funding for agriculture.
Tools for Climate Resilience
Data-driven tools, such as index insurance triggered by climate thresholds like rainfall levels, can significantly reduce risks for farmers. Digital training tools that teach climate-smart practices are also key to building resilience.
Aldredge emphasized the potential of digital platforms to create transaction histories for farmers in climate-affected regions, reducing perceived risks for lenders. Similarly, companies can assist farmers with resources and training on efficient agricultural practices to improve their adaptability.
Corporate Role in Climate Adaptation
Adithi Rooplall, general manager of ESG at Foskor Mines in South Africa, pointed out that many companies focus more on climate mitigation than adaptation. She suggested that businesses should integrate adaptation strategies into their climate policies and ESG frameworks.
This could include providing smallholder farmers with equipment to improve efficiency, access to climate change modeling data, and training on climate-resilient farming techniques. For example, companies could share weekly hazard forecasts, such as rainfall patterns, on their websites to help farmers plan their activities.
Addressing Water Risks
Stephen Walker, managing director of Ground to Tap Water Solutions in South Africa, highlighted the critical need to derisk water availability in Africa. Strategies include securing water supplies through dams and rivers, managing boreholes and aquifers with advanced technologies, and implementing water treatment solutions.
Improving water-use efficiency through drip irrigation, remote sensing, and soil monitoring can also enhance resilience. Additionally, recycling water in aquaponics and greenhouse systems reduces the overall water footprint.
Walker noted that while investments in water solutions may not directly increase profits, they add significant value by mitigating water-related risks.
The Way Forward
Farmers in Africa face mounting challenges due to climate change, but with adequate support and innovative solutions, they can build resilience and secure their livelihoods. Collaboration between governments, private investors, and companies is essential to bridge the climate finance gap and implement effective adaptation strategies.