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 Ginneries Limited aims to provide support with this in Zambia and Malawi – with funding from DEG Impulse.

Source of funding
Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)
develoPPP Classic

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 Ginneries Limited aims to provide support with this in Zambia and Malawi. The aim of their initiative is to teach sustainable agricultural practices and promote the use of improved seeds, thereby making the supply chains for both companies more resilient. The small farmers also benefit from larger crop yields. 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 Ginneries 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 in Zambia are being established as carbon sinks. These enable significant carbon storage and provide an additional source of income for small farmers from the proceeds of selling the carbon credits generated.

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.

DEG Impulse

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E-Mail: info@degimpulse.de

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