MaliBuluu (Blue Wealth) / MaliVerde (Green Wealth) is a large scale grant fund mechanism for climate adaptation and mitigation projects for smallholder farmers and fishers in African countries. The majority of this group is not investable in by the conventional banking system and so it aims to crowd in their not insignificant resources of land, time and money. The fund will help to support multiple community-managed revolving credit facilities for small-scale producers in land and seascapes. It has the potential to restore 50 million hectares of land and seascape in sub-Saharan Africa.
The target countries of Mozambique, Tanzania, Kenya, Ghana, Cameroon, DRC, and Burkina Faso set NDC mitigation targets and adaptation priorities with aggressive contributions from the agricultural sector. However, there is uncertainty how NDCs will be financed in these target countries because 80% of all small-scale farmers and fishers (and their value chains) are not commercially investable, meaning few opportunities for private investment in adaptation and mitigation activities. This is the “elephant in the room”: economies dominated by small scale farmers (and fishers), which are not structured for external capital investment.
This idea addresses the climate aspect of this problem by (i) creating a mechanism to crowd-in local financial/in-kind contributions to scale climate investment in otherwise unbankable communities, by the those communities themselves, and thereby (ii) ensuring small-scale farmers and fishers can contribute meaningfully and cost-effectively to NDC targets. It is a community managed revolving credit facility for small-scale producers who engage in sustainable land and marine resources management. It uses an eco-credit system to track financial and environmental impacts.
Over 10 years, a $2 billion fund will capitalise1,700,000 community eco-credit groups, with a total of 50,000,000 members and restore 50 million hectares of land and seascape. Target countries are Ghana, Cameroon, DRC, Burkina Faso, Mozambique, Tanzania and Kenya.
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Investor initiative chooses ideas that will mobilize investment for sustainable cities, energy access, blue carbon, and sustainable agriculture in developing countriesMarch 5, 2019
LONDON – The Global Innovation Lab for Climate Finance, an investor-led initiative that identifies, develops, and launches promising solutions to drive critical investment to action on climate change in developing countries, has selected its top six ideas for 2019. At a time when large-scale action on climate change is more urgent than ever before, the […]