Feasibility study of a project to support climate-smart agriculture Senegal

Context of the service

The Agricultural Bank (LBA) plays a key role in financing agriculture in Senegal, especially in the face of the challenges posed by the post-COVID crisis and the war in Ukraine. As an accredited entity of the Green Climate Fund (GCF), it develops innovative financing models to strengthen the resilience of agricultural value chains.

In 2022, LBA obtained the validation of a concept note for the "Green Climate Finance Facility" project, aimed at facilitating access to agricultural credit and encouraging sustainable practices. This project will directly benefit 307,000 farmers and will involve financial institutions, cooperatives and SMEs. A green credit line and a digital lending platform will be set up, accompanied by technical assistance and knowledge management.

In June 2022, LBA received support from the GCF through a Project Preparation Facility, under which it engaged a firm for a feasibility study and market analysis.

Services provided

The study made it possible to analyse the socio-economic and climatic context of Senegal and its impacts on agriculture. The following key value-chains were considered: rice, groundnut, local cereals, market gardening, banana, tree crops (mango, citrus), livestock.

The study integrates a characterization of good practices of bankable CSA as well as an assessment of vulnerability factors, barriers to the adoption of climate solutions and identifies the most resilient agricultural value chains. The target beneficiaries (producers, SMEs, vulnerable groups) were identified, as well as their financing needs. The study proposes bankable eligibility criteria and business models.

A specific section analyses the biogas sector, studying the technical and economic challenges of biodigesters, demand and existing business models. It assesses the funding available and the associated risks.

Summary of the service

Feasibility study of a project to support climate-smart agriculture: Situation analysis of the Senegalese agricultural sector and climate-smart practices relevant to key value-chains (rice, groundnut, local cereals, market gardening, banana, tree crops (mango, citrus), livestock); Characterization of these good practices that can be financed in the framework of a project of the Agricultural Bank of Senegal supported by the Green Climate Fund (GCF).