FP220

Africa Rural Climate Adaptation Finance Mechanism (ARCAFIM) for East Africa region

Africa Rural Climate Adaptation Finance Mechanism (ARCAFIM) for East Africa region

In East Africa, climate models predict a continual rise in average temperatures and an increase in the frequency and intensity of heavy rainfall events. This places significant pressure on the region's farmers, as they will grapple with worsening conditions for crop production and livestock keeping. However, progress in developing more sustainable agricultural processes has been slow, as farmers in Kenya, Uganda, Tanzania, and Rwanda lack access to the necessary funding for Climate Change Adaptation (CCA) investments. There is an urgent need for private sector CCA finance to spearhead long-term, market-driven change.  

The ARCAFIM programme strives to introduce a practical and widely applicable financing model to mobilise private sector investments for rural CCA initiatives in East African micro, small, and medium-sized enterprises (MSMEs) and smallholders involved in the food systems. These MSMEs and smallholders have the potential to drive sustainable, long-term changes in response to market needs. The programme supports climate adaptation for smallholders and MSME by crowding in international and local financing, including from regional commercial banks and local financial institutions. The programme model can serve as proof-of-concept to be replicated in other regions, offering potential to make a significant impact on private sector financing for rural CCA projects on a broader scale. 

Total project value

 

Beneficiaries

 

Direct
1,159,600
Indirect
267,600
Theme

Adaptation

Result areas

Project timeline

Pipeline

28 Mar 2022 - 577 days

Concept note received

28 Mar 2022

Funding proposal received

25 May 2023

Cleared by GCF Secretariat

10 Aug 2023

Cleared by iTAP

02 Oct 2023

Approved

25 Oct 2023 - 125 days so far

Approved by GCF Board

25 Oct 2023

Legal opinion on AE's Internal Approval

21 Feb 2024

Under implementation

Completed

One region

  • Africa

Four countries

Two priority groups

  • Least Developed Countries
  • African States
USD  
  • Financing
    • Private sector
    • Public sector
  • Size
    • Micro
    • Small
    • Medium
    • Large

GCF financing

InstrumentAmount
LoanUSD 45,000,000
GrantUSD 10,000,000
Total GCF Financing
USD 55,000,000

Co-financing

Co-financerInstrumentAmount
Co-FinancingLoanUSD 30,000,000
Co-FinancingLoanUSD 15,000,000
Co-FinancingLoanUSD 90,000,000
Co-FinancingGrantUSD 10,000,000
Total Co-Financing
USD 145,000,000

GCF Contacts

General media inquiries

GCF Communications
Send e-mail

Request for information

GCF Information Disclosure
Request information about this project

Project complaints and grievances

GCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6186 (KST)
File a complaint

Integrity issues

GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6714 (KST)
Send e-mail

Accredited Entity

International Fund for Agricultural Development
Dr. Jyotsna Puri
Primary

Associate Vice-President, Strategy and Knowledge Department (SKD)
Via Paolo di Dono, 44, Rome, Italy
Phone +39 06 5459 2109
j.puri@ifad.org
Mr. Pierre-Yves Guedez
Secondary

Senior Climate Finance Specialist, Environment, Climate, Gender and Social Inclusion Division (ECG)
Via Paolo di Dono, 44, Rome, Italy
More contacts

National Designated Authority

Kenya
The National Treasury
Dr Chris Kiptoo Primary
Principal Secretary
Treasury Building 12th Floor, Harambee Avenue, Nairobi, Kenya
Phone +254 20 224 0051
pstnt@treasury.go.ke
Mr. Malik Aman Secondary
Programme Manager, National Coordination (FLLoCA)
Phone +254 720 771774
malikaman@me.com
Mr. Peter Odhengo Secondary
Senior Policy Advisor, Climate Finance
Phone +254 722 984 992
podhengo@climatefinanceken.go.ke
Mr. Hillary Korir Secondary
Senior Economist
Phone +254 722 644736
hillary.korir@treasury.go.ke
Rwanda
Rwanda Environment Management Authority
Mrs. Juliet Kabera Primary
Director General
Tanzania
Vice President's Office
Ms. Mary Maganga Primary
Permanent Secretary
P.O.Box 2502, Dodoma, Tanzania
Freddy Manyika Secondary
Uganda
Ministry of Finance, Planning and Economic Development
Mr. Ramathan Ggoobi Primary
Permanent Secretary / Secretary to the Treasury
Phone +256414707135
ramathan.ggoobi@finance.go.ug
Mr. Andrew Masaba Secondary
Principal Economist / Climate Finance Desk Officer, Development Assistance and Regional Cooperation