Olu Ajayi Technical Centre for Agricultural and Rural Cooperation (CTA) Netherlands

1. Innovative approaches to promote finance and inclusive access to climate-resilient and sustainable food systems Olu Ajayi Technical Centre for Agricultural and Rural Cooperation (CTA) Netherlands Victoria Falls, Zimbabwe 25 April 2017

2. Outline • Challenges necessitating climate resilient food system • Case study in SA region • Key lessons from other initiatives in ACP

3. Mission: to advance food and nutrition security, increase prosperity & encourage sound NRM in ACP Approach: Promoting agriculture as a sustainablebusiness that can create value for smallholder producers, provide jobs for women and youth, produce nutritious and healthy foodfor people, and serve as an engine for inclusive growth.

4. Key challenges necessitating climate-resilient food systems • In rainfed and mono-modal rainfall regimes, agriculture is tied to weather leading to recurrent swings of food insecurity • Distribution of impacts- smallholder & female farmers have lower capacity to adapt, are disproportionally impacted • Climate change threaten agricultural transformation trajectory • Drought and weather extremes are the “new normal”? • Climate is changing and, the way agriculture is carried out will need to change

5. Single solution vs bundled solution approach • Single solution approach is often less effective, low cover • Bundles (multi-layers) of solutions to climate change • “Scaling-Up Climate-Smart Agricultural Solutions for Cereal and Livestock Farmers in Southern Africa” • The “bundled solutions” • Stress-tolerant seeds • ICT-enabled weather information service • Innovative weather-based insurance • Diversified livelihood through livestock

6. Single solution vs bundled solution approach • Partnership • Producer groups e.g. ZFU, NASFAM, • Private sector- Insurance companies, telcom, seed companies, agro-allied industries • Weather data companies • Public sector

7. Lessons learnt from other activities in ACP • Riskiness of agriculture and finance: perception or reality? • Climate change may increase the perceived risk of agriculture. • Assurance from public sector that agriculture is worth supporting • Policies to engage private sector and agro-industries • Initial investment for public goods e.g. weather stations & data quality • Clarity and stability of policies: private sector make calculated risks rather than a leap of faith • Internalizing externalities- conventional or climate-resilient? • Inclusive strategy for agriculture transformation • Farmers who have different adaptive capacity to cc e.g. women • Increasing the voice of the producers

8. Lessons learnt from other activities in ACP • Scenario of climate on food systems • Scenario building on climate change and agrifood systems e.g. Pacific region • Evidence base on climate change and agro-industries e.g. steady supply of raw materials for industries • Riskiness of agriculture: perception or reality? • Climate change may increase the perceived risk of agriculture. • Assurance from public sector that agriculture is worth supporting • Building partnership among players across different sectors is key

9. Thank you CTA operates under the framework of the Cotonou Agreement and is funded by the EU.