Coronavirus pandemic: financing deforestation-free supply chains in Africa
As of: September 2021
Communities in (sub-)tropical Africa dependent on forests for their livelihoods have been hard-hit financially by Covid-19. Investments in the value chains for speciality coffee and cocoa in western and eastern Africa can promote deforestation-free production while also supporting reforestation and economic growth. The Regeneration initiative supports the financing of sustainably produced coffee and cocoa in western and eastern Africa. The initiative is targeting distributors, who can purchase products from smallholders and agricultural cooperatives with the operating capital provided by IKI. The initiative brings together a network of distributors in many African countries that the two implementing organisations have set up in the course of various programmes conducted in recent years. The initiative’s model also has the potential to be expanded step by step to encompass other deforestation-free supply chains, countries and continents. /
State of implementation/results
- Regeneration – COVID-19 Africa Response & Rebuild (The Rebuild Facility) is a mechanism to support the rebuilding of value chains of speciality coffee and cocoa by increasing participation from producers/businesses following environmentally sustainable practices.
- The Rebuild Facility focuses on protecting at-risk value chains and safeguarding the forest-dependent communities and stakeholders. Returnable grants offered through the Rebuild Facility ensure the continued purchases of sustainable commodities from communities and community-based enterprises. As the products are successfully sold to end-markets, the grant is returned and reinvested to bolster and enlarge sustainable and fair value chains.
- The Rebuild Facility protects smallholder livelihoods and incomes by maintaining their access to international buyers and markets. Its interventions aim to protect and conserve tropical forests and other high value forested areas by delivering improved incomes to deforestation-free producers.
- The Rebuild Facility also strengthens the private sector markets by supporting market liquidity, transactional integrity and innovative business cases for deforestation-free production that delivers enhanced livelihoods and other benefits that have been threatened by COVID-19 market disruption.
- The Rebuild Facility started implementation in December 2020 and has already forged partnerships that aim to support over 6,000 smallholder farmers in Uganda and Ethiopia.
- The Rebuild Facility aims to reach out to 10,000 farmers through partnerships with market access players by mobilising (private and public) finance of over 14 million EUR and over 100,000 hectares of land under improved and sustainable land use management.
- Further information about the Rebuild Facility can be accessed through www.regeneration.io