Support for climate transformation in agriculture – increasing resilience
Small farmers in Africa often face major challenges such as deteriorating soil quality and the wide-ranging effects of climate change. A joint venture between DEG’s long-standing customer ETG and Parrogate aims to provide support with this in Zambia and Malawi – with funding from DEG Impulse.
Sustainable agricultural practices
Small farmers in Africa play a key role in food security and supply for the growing global population. However, they face major challenges such as deteriorating soil quality and the wide-ranging effects of climate change.
A joint venture between long-standing DEG customer ETG and Parrogate aims to tackle these challenges in Zambia and Malawi. The aim of their initiative is to promote sustainable agricultural practices and the use of improved seeds, thereby making the supply chains for both companies more resilient. The small farmers also benefit from improved crop yields and reliable offtake markets. DEG Impulse promotes this initiative via the develoPPP programme with BMZ funds, having previously supported a feasibility study by ETG via Business Support Services.
Supporting small farmers
Model farms are being built in the two countries to act as training centres on climate-friendly farming methods for over 50,000 farmers. In Malawi, DEG Impulse is helping to boost the organizational management of cooperatives in the supply chain through develoPPP in order to improve access to information, equipment and services for the agricultural businesses. This serves, among other things, to reduce the risk of disruptions in the supply chain.
A large part of Zambia is currently experiencing historic droughts that are caused by El Niño and climate change. ETG and Parrogate are responding to the situation by supporting small farmers through additional measures to improve the soil and thus enable it to retain more water. This greater water holding capacity should make small farmers more resilient.
Creation of carbon sinks
In addition, designated agroforestry areas using a mix of native and productive fruit trees are being established as carbon sinks in Zambia. These will enable significant carbon storage, and will provide additional sources of income through sale of related products, such as cashew. Further, farmers will profit from benefit-sharing agreements, through which they receive monetary or in-kind support by participating in agroforestry-based carbon projects.
Outcome
The project improves the opportunities for income generation for small local farmers through increased crop yields and from the proceeds of selling carbon credits. At the same time, the partner companies are able to increase the resilience of their supply chain – particularly in relation to climate risks.
