Green Climate Finance Facility for fostering Climate-smart agriculture in Senegal

La Banque Agricole (LBA) is seeking US$ 646,600 from the Green Climate Fund's Project Preparation Facility to design a large-scale programme aimed at fostering climate-smart agriculture in Senegal. The proposed programme intends to establish a dedicated Line of Credit (LoC) to provide concessional loans to smallholder farmers, MSMEs, and cooperatives for the adoption of CSA practices, such as drip irrigation and biodigesters. The PPF will fund critical preparatory activities, including baseline and market studies, a feasibility study for a digital lending platform (Agricash), a gender assessment, and the development of a climate rationale. The ultimate goal of the full programme is to increase farm productivity and resilience while reducing greenhouse gas emissions by an estimated 3.42 million tCO2e over 20 years, benefiting approximately 307,000 direct beneficiaries.

• The Project Preparation Facility (PPF) request seeks US$ 646,600 from the GCF, with an additional US$ 45,000 in counterpart funding from La Banque Agricole (LBA), to complete the design of a full Funding Proposal within 9 to 12 months.
• The proposed programme aims to establish a Line of Credit (LoC) facility to provide concessional loans for climate-smart agricultural (CSA) practices, targeting 290,000 small-holder farmers, 16,000 medium-scale farmers, 700 SMEs, 300 service providers, and 50 corporates.
• The programme's estimated total cost is EUR 60.3 million, with EUR 31.2 million requested from the GCF (EUR 27 million as a senior loan and EUR 4 million as a grant), and EUR 29.1 million in co-financing from LBA and other local financial institutions (LFIs).
• The programme expects to sequester or avoid approximately 3.42 million tCO2e over its 20-year lifespan, with a calculated GCF cost of approximately EUR 9.12 per tCO2e.
• Key CSA interventions to be financed include drip irrigation, zero to minimum tillage, organic fertilizers, and the use of biodigesters to replace fuel wood and agrochemical fertilizers.
• The programme will pilot a digital mobile lending component using LBA's 'Agricash' platform to increase financial inclusion for rural farmers and reduce delivery costs for financial institutions.
• The project targets a gender-inclusive lending ratio, with 40% of loans intended for women-led MSMEs, 30% for youth-led MSMEs, and 30% for male-led MSMEs.
• Senegal's agricultural sector is highly vulnerable to climate change, with mean annual temperatures increasing by 1.6°C since 1950 and a 30% reduction in rainfall observed between 1950 and 2000.
• Financial barriers to CSA adoption include high delivery costs for banks, a perception of small-scale agriculture as too risky, and a lack of specialized loan officers capable of farm-level cash flow projections.

APA

Green Climate Fund (2022). Green Climate Finance Facility for fostering Climate-smart agriculture in Senegal. https://www.greenclimate.fund/sites/default/files/document/ppf052-lba-senegal.pdf

Chicago

Green Climate Fund. Green Climate Finance Facility for fostering Climate-smart agriculture in Senegal. 2022. https://www.greenclimate.fund/sites/default/files/document/ppf052-lba-senegal.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Green Climate Finance Facility for fostering Climate-smart agriculture in Senegal |date=2 June 2022 |url=https://www.greenclimate.fund/sites/default/files/document/ppf052-lba-senegal.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2022green, author = {{Green Climate Fund}}, title = {{Green Climate Finance Facility for fostering Climate-smart agriculture in Senegal}}, institution = {Green Climate Fund}, year = {2022}, month = jun, url = {https://www.greenclimate.fund/sites/default/files/document/ppf052-lba-senegal.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }