Technical assistance on climate issues at the Agricultural Bank of Senegal (LBA) Senegal

AGRICULTUREAGRICULTURE TRANSVERSALTRANSVERSAL

French Development AgencyLa Banque Agricole

Services: Technical assistance, Diagnostics and feasibility studies

Countries: Senegal

Dates of intervention: 2023/06 - 2023/11

Amount executed: 15 100 €
Total amount of the service: 71 825 €

Main backer: French Development Agency

Main beneficiary: La Banque Agricole - Client

Co-contractors:

Support provider: SalvaTerra

Experts: Anis CHAKIB

Context of the service

The agricultural sector represents 17% of Senegal's GDP and employs 70% of its working population.

The Agricultural Bank (LBA), the leading financer of Senegalese agriculture, aims to contribute to Senegal's sustainable and ecological transition as part of its 2023-2027 strategic plan. AFD, a long-standing partner of LBA, plans to support it in this direction through a credit line project coupled with an EU subsidy.

The planned project, co-financed by the European Union and AFD, will pursue three objectives:

- Improve agricultural productivity and rural financial inclusion, especially for producer groups and women;

- Supporting LBA in implementing its climate finance strategy;

- Strengthen LBA's monitoring, evaluation and risk management capabilities.

Services provided

The SalvaTerra - Horus Development Finance consortium was recruited to carry out the feasibility study for a line of credit and technical assistance for agricultural investment and the LBA's green and climate transition.

In particular, SalvaTerra carried out the following tasks:

- Rapid diagnosis of the Senegalese agricultural sector, vulnerabilities to climate change and initiatives for an agroecological transition;

- Diagnosis of LBA's agricultural portfolio and the main green and climate projects and partnerships;

- Diagnosis of the climate vulnerability of LBA's agricultural portfolio;

- Study of LBA's potential for green and climate financing in the Senegalese agricultural sector;

- Framing of the "climate" credit line (taxonomy proposal) and technical assistance.

Summary of the service

Feasibility study of a line of credit and technical assistance for agricultural investment and the green and climate transition of the Banque Agricole du Sénégal (LBA). Diagnosis of the Senegalese agricultural sector, LBA's agricultural portfolio and climate partnerships. Study of the potential for green/climate financing and climate risks in the main sectors supported. Framing of the credit line and climate technical assistance.