CIF acknowledges that effective climate action begins at the grassroots level and recognizes the potential of young entrepreneurs in Africa to drive climate adaptation and resilience. To support this cause, CIF has partnered with the Global Center on Adaptation (GCA) and the African Development Bank (AfDB) in the Youth Adaptation Solutions Challenge (YouthADAPT), which incubates and accelerates climate adaptation businesses led by African entrepreneurs under the age of 35. Through this initiative, young people are empowered to create climate-related jobs and contribute to sustainable development in their communities.
On June 27, the world community recognizes micro-, small and medium-sized enterprises day (MSME day), with a focus on women and youth entrepreneurship. At the CIF, we chose to celebrate with three YouthADAPT entrepreneurs. We asked them to reflect on their journey, describe how they fight against climate change, and explain how climate finance can help.
Reham described the difficulties of starting a new business: “accessing finance, customers, and experience are some of the obstacles, especially when building a business with a goal to achieve impact. Reaching this point with Baramoda, my company, was not easy.” But the energy, passion, and resilience of youth can also provide an advantage. “With the right support and opportunities from entities such as Climate Investment Funds, young entrepreneurs can make a real impact,” she said.
Baramoda, recycles agricultural waste to produce organic fertilizers. This helps increase crop production, minimize costs for farmers, use water resources wisely, and preserve natural resources for future generations. This process prevents agricultural waste from ending up in landfills where it would emit greenhouse gases. It also helps reduce the use of chemicals, such as nitrogen or urea. In just 5 years, Baramoda has successfully recycled 170,000 tons of agricultural waste.
“Climate finance can support small businesses by offering below-market loans or grants. Technical support and training can build the capacity of small businesses to adopt sustainable solutions and access finance,” concluded Reham.
Maryanne grew up on a two-hectare farm and her parents were able to raise and educate her and seven siblings with the proceeds from the land. “Today, the same farm can hardly feed my parents due to decreased crop yields resulting from climate change, soil degradation and poor farming methods. My parents are not alone and together with over 7.5 million smallholder farmers in Kenya and 33 million in Africa, they face huge challenges,” explained Maryanne.
In Kenya, 80% of farmers own less than two hectares of land. These challenges motivated Maryanne to start AgriTech Analytics, a company using technology and data analysis to help smallholder farmers increase their crop yields, reduce costs, and minimize environmental impact. With a vision to end hunger in Africa, she gathered a team of experts in technology, agriculture, and business and started by conducting extensive research to understand the needs and challenges of farmers in the region.
“My company has faced several challenges, including funding, regulatory hurdles, and competition from other companies. However, we have remained focused on the vision and persevered,” she said. “Today, AgriTech Analytics is a successful smart agriculture company that has helped thousands of farmers improve their yields and increase their incomes. I hope to inspire young entrepreneurs, especially girls and women to use their skills and passion to make a positive impact in their communities.”
AgriTech Analytics supports climate action by guiding farmers on appropriate use of inputs to avoid waste and reduce the risk of soil degradation. Their technology monitors soil moisture levels, reducing water consumption by over 43%. It also helps farmers target their use of pesticides, a significant source of greenhouse gas emission. “We have found from the 3,875 farmers using precision pest management techniques that they reduce pesticide use by up to 80% with greenhouse gas emissions of up to 3 kg CO2 equivalent per kg of pesticide saved,” says Maryanne. AgriTech Analytics also monitors soil nutrient levels to avoid over-fertilization, which can lead to nutrient runoff and water pollution.
According to Maryanne, climate finance can support small businesses in adapting to the impacts of climate change, such as extreme weather events or sea-level rise. “This can include funding for infrastructure improvements, disaster preparedness planning, and insurance schemes,” she concluded.
“I have found entrepreneurship to be a lonely journey given that as entrepreneurs we attempt innovative and new things that might not yet have a large following,” said Noël, the founder of Lono. “The most rewarding part of building a business has been observing the impact of our actions on people. I have been especially struck by the effect that our waste management solutions have on the perception of many farmers who now treat biomass as less of a nuisance and more like an additional resource.”
Lono manages waste that would otherwise burn or rot and helps farmers increase the carbon storage and water retention capacity of their soil. Both are important to climate risk mitigation and adaptation. The company has created a solar powered bin that converts organic waste into compost and biogas. It is designed for low-income households, cooperatives and SMEs in rural areas of West Africa.
“Climate finance can support small businesses by financing the preliminary data needed to claim the emissions reductions or the carbon sequestered associated with the innovation. This baseline data is very costly to obtain,” he concluded.
To learn more about this initiative, visit the YouthADAPT website here. YouthADAPT provides business grants of up to $100,000 each and facilities an intensive 12-month business accelerator program. The program aims to deepen entrepreneurs’ understanding of climate adaptation and prepare them to access venture funding so they can make the necessary investments to scale up.