Facilitating Climate Action Investment Markets for Agri-food, Housing and Manufacturing in Tanzania – Global Center on Adaptation

BUILDING A PRAISE TO BECOME AN AFRICAN
Africa faces a major adaptation and financial sustainability gap, needs an estimated $70Bn annually by 2030[1]. However, the latest adjusted budget for sub-Saharan Africa reached only $12.96 billion in 2023.[2]. This continues in spite of adaptive investments that generate returns of 2 to 15 times the initial investment.

Private debt remains an underutilized tool for adaptation: while 51% of climate finance pursued in Africa comes as debt[3]the contribution from private sources towards adaptation is negligible. For example, in Tanzania, climate finance from private sources is estimated to account for only 5% of total flows[4].

For commercial banks and other providers of inclusive financial services, adaptive finance is about reducing risk and opportunity. Climate change is a growing business risk – from agri-food systems to housing and manufacturing, weather conditions threaten the ability of borrowers to service and deepen financial exclusion. Banks and investors who act now will reduce climate risk, open new markets, and boost long-term profitability.

LITTLE CHOICE
Under the Africa Adaptation Acceleration Program (AAAP), GCA is increasing its support to financial systems across Africa to strengthen sustainable economies. This integrated support combines market opportunity analyses, targeted assistance to local banks, capacity building, and support for national policy reforms.

In collaboration with CGAP and CGIAR, GCA conducted two market assessments to demonstrate that climate adaptation systems and services in Tanzania, Kenya and Zambia are bankable. The studies identify and measure the national market size and financial returns for nine business adaptation solutions across sectors: five in agri-food systems, and four in housing, energy, solutions and natural solutions.

INVITATION TO ONLINE WEBINAR
GCA, FSD Tanzania and the World Economic Forum (the Forum) under their Africa Platformcordially invite you to an online webinar to unlock Climate Adaptation Investment Markets in Tanzania.

The aim is to highlight specific climate lending opportunities across the agriculture and food systems, housing and manufacturing sectors. The webinar recording will accompany the GCA–Bank of Tanzania Climate Adaptation Finance Masterclass for Tanzanian financial institutions, which will be held soon on the Bank of Tanzania Academy website.

The Webinar is led by GCA and FSD Tanzania and will bring together the key actors in terms of advanced lending in Tanzania: from the regulator to the banking association, to enablers, and representatives of adapters, with the aim of informing. solutions for increasing Credit Adaptation & Resilience Resilience in Africa. The meeting will be opened with high-level remarks by the Bank of Tanzania. Discussion topics will include:
* A macro-economic perspective on climate-related financial risks and opportunities in Tanzania
* The need for adaptation funds
* Business development of obvious market opportunities: solar irrigation, hermetic storage solutions, cold storage of milk, home improvements for adaptation and effective climate cooling in factories.
* Helpful information for larger loans: financial products and de-risking methods
* Establishing linkages to help financial institutions support the bank’s adaptation projects.

Panelists and participating organizations will include GCA partners and collaborating institutions such as Bank of Tanzania, Tanzania Bankers Association, CGAP and CGIAR.

[1] CPI. 2024. Status of Climate Finance in Africa 2024. https://www.climatepolicyinitiative. org/publication/landscape-of-climate-finance-in-africa-2024/
[2] CPI, Global Climate Finance Data, https://www.climatepolicyinitiative.org/resources/data-visualizations/global-landscape-of-climate-finance-data-dashboard/
[3] CPI. Global Climate Finance Notes.
[4] Ibidem.