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

Context of the service

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

The Agricultural Bank (LBA), the leading financier 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 grant.

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

- Improve agricultural productivity and rural financial inclusion, especially of farmers groups and women groups;

- Supporting LBA in the implementation of its climate finance strategy;

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

Services provided

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

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 the potential for green and climate financing in the Senegalese agricultural sector for LBA;

- 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 green transition and climate of the Agricultural Bank of Senegal (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.