This webinar explores the role of Digital Finance Services (DFS) in addressing the pressing needs for climate resilience. We zoom in on climate finance flows and how agriculture, a major source of income for rural people in low- and medium-income countries is heavily affected by climate change.
Sonia Pietosi from GSMA said that smallholder farmers are among the most affected by climate change. It is estimated that by 2050, 44% of the Sub-Saharan Africa area will be exposed to severe drought and flooding. This ultimately will increase food insecurity and shortage if climate resilience is not implemented. Financial resources are urgently needed to increase climate finance flows.
New technology and digital advancements such as mobile money, data collection, API’s and remote technologies can help provide digital financial services that can support and build resilience for small holder farmers. Yapu a software solution company allows one to create a comprehensive picture of the financial situation of their client base by comparing their farming and business practices against local best and worse practices. These products use digital data sources, such as automated weather stations and remote sensing data address the needs of your customers and become their true partner.
SatSure tries to find opportunities by looking at data and how can they develop new inclusive solutions that can grow to work with government agencies, private and public communities in developing design better products. By using decision intelligence (collecting data) in the way DFS products are designed, administered and how they are created for the most vulnerable people is key in ensuring climate resilience.
Agri DFS also plays two roles – long term adaptation and short-term responses of agricultural credit and agricultural insurance. Short-term agricultural credit can be used to purchase products that can improve inputs, such as drought-resistant crop varieties and long-term credit as an investment in assets that enhance productivity, such as irrigation services. Access to insurance opens access to credit that can improve smallholder farmers livelihoods
There is willingness of donors to invest in green financing and also pressure on organisations to bring green products into their portfolio. This, along with regulation and policy change, is helping drive the green financing revolution that is much needed.