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“Africa’s Food Future on the Brink”, Ogheneovo Ugbebor Warns at DIniti8tive-Agropedia Webinar

Declaring the event open, Sharon Ayeni, a member of the Board of Trustees (BOT) of DIniti8tive, who spoke through the Co-Founder and Managing Partner Dr Fidelis Ekom noted said despite the dim hope caused by unannounced floods, overstretched droughts and harvest loss “because the climate has changed faster than our systems have adapted”, that “across the continent, innovators, researchers, policymakers and agripreneurs are building AI tools that predict climate shocks, developing drought-resistant systems, strengthening seed value chains, restoring degraded land and designing market structures that help farmers not just survive but thrive.”

This she said was the reason for the webinar.

Beyond the insightful keynote address by Ogheneovo Ugbebor of Ikore International which Techeconomy has written on the webinar featuring a robust panel session that explored practical, scalable solutions for mitigating climate risks and strengthening food security in Nigeria and across Africa.

The discussants included Munir Ahmed, project coordinator at IITA and the Islamic Development Bank; Nazeer Ahmad, Thematic Coordinator Rural Structure Formation at Extension Africa; Ronke Adeniyi, programme manager at the Environmental and Economic Resource Centre; Chief Bassey Archibong, CEO of Agropedia; Dr. Rufus Idris, country director of AGRA;  and Daniel Udeme-Joseph, the Founder of Farm Monitor Africa who are experts across technology, agronomy, rural development, and market systems, examined how farmers and agribusinesses can adapt to increasingly volatile climate conditions.

Ronke Adeniyi who has worked with farmers in various regions picked out water harvesting, solar irrigation, organic soil amendment, early warning systems and improved seed varieties as scalable methods that work best in helping farmers manage floods, droughts and declining soil health.

She also encouraged that “we should create waterways so that water can always find its level. We can also build water dikes that can be a form of embankment for water, so it does not wash away our farmlands.”

Discussions also centered on climate financing, as Munir Ahmed of the IITA/IsDB informed various farmer groups present such as the Association of Rice Farmers of Nigeria, Cocoa Farmers Association of Nigeria and Fish Farmers Association of Nigeria of the climate insurance schemes tailored to smallholder farmers.

He emphasized that money must be put in the upstream (production stage) of agriculture and not just in the downstream (processing) sectors of agricultural production, “channel more monies into research and seed development to enhance derisking mechanisms, lower production cost and increase output/harvest.”

Agropedia’s Chief Bassey Archibong shared the unique challenges of women and youth-led agric enterprises and noted that most farmers lack financial buffers to recover from climate shocks, leading to massive income losses, reduced planting seasons, and worsening poverty cycles.

“We work in a number of communities in Adamawa, Gombe and Borno States and what we see is a lot of light harvest. A lot of women lost their crops just because there was a dry spell for more than 3 weeks”, he said.

He said women involvement in the design and management of agric tools and application is germane for effectiveness.

He and others called for innovative insurance solutions, public-private partnerships, and supportive policies that de-risk climate investments.

Mr Nazeer Ahmad of Extension Africa demonstrated how data driven tools and digital platforms enhance small -holder farmers’ resistance to climate shock especially in regions with poor connectivity and no extension.

“Digital extension services provide farmers with accurate, timely and personalized information via mobile application, via IPI calls”.

He however added that connectivity and digital literacy remains very low, limiting the adoption of these digital services, “so there is a need for collaboration between partners. There’s a need for the government to come in and set up internet infrastructure to enable farmers to utilize all those digital services.”

He mentioned Extension Africa’s Precision Development that promotes climate advisory services and the Intelligent Agriculture Systems Tool, the Plantic disease diagnosis application and how they give pre-season and inseason prompts to farmers on  flood, drought, when to apply fertilizer etc. all of which “translate to increase in yield for farmers”.

This is as Dr. Rufus Idris dissected the socio-economic implications of climate risks, noting that unpredictable weather patterns have made traditional knowledge insufficient for modern farming.

Drawing from AGRA’s current intervention in Africa, Idris noted key lessons that stand out in building climate resilience at scale, he emphasized that access to real-time climate information, improved resilience planning, regenerative agriculture and community-level capacity building must take precedence.

Likewise Daniel Udeme-Joseph, CEO of Farm Monitor Africa during his much anticipated experiential sharing spoke on interventions at Farm Monitor such as the Automated Climate-Smart Ai-Powered Crop Calendar, (seed, fertilizer) Input Advisory and Alternative Credit Score, Crop Yield Predictor and Monitoring; “so we essentially act as bank within the bank to reach farmers on the ground, and then with the use of farm monitor, they’re able to get credit to buy inputs, improve seedlings and pay for services like mechanisation.”

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Experts Sound Alarm on Food Security at DIniti8tive–Agropedia Webinar

Reeling out results, Udeme-Joseph declared that Farm Monitor works with 350,000 farmers across four States of Nigeria, as well as in Uganda, and have helped to increase their average yield by 35%, household income by 31%, input cost reduction by 21% and adoption of climate-smart practices

that interventions and funding in agriculture should go beyond the upstream processing sector to the downstream production sector. He called for an organised farmer credit information management system to ensure equitable distribution of loan facilities.

These experts warned that technology must be accompanied by training, infrastructure, and affordability mechanisms to ensure broad adoption.

They stressed that climate-smart agriculture cannot be optional; it is a necessity for long-term food sustainability.

The panel session further underscored the importance of market access and strengthening value chains. Climate risk management, they argued, must include strategies that ensure farmers can profitably sell their produce despite environmental challenges. Interventions such as cold-chain logistics, storage technologies, and stable aggregation systems were recommended.

Qestions were taken from participants who needed support with research, funding and mentorship.

Panelists listed opportunities in severance research institutes, built connections and promised to share data and collaborate in projects and sustainability.

The next steps session was led by  Udeme-Joseph of Farm Monitor while Emeka Nwankwo, the Managing Partner and Co Founder of DIniti8tive expressed the organisation’s readiness to continue in the quest for tech inclusion in agriculture, finance, education, health etc.

Throughout the panel, DIniti8tive’s role in convening multi-sector stakeholders was repeatedly acknowledged as crucial for bridging the knowledge gap and promoting collaborative action. The discussion concluded with a call for sustained engagement and the implementation of insights shared during the webinar.

In fact, per the ITC Agri-food Export and Climate Change Report 2024, trade in agricultural goods contributes substantially to the export performance of developing countries and generates significant employment opportunities.

However, agriculture is both a major emitter of greenhouses gases (GHGs) and a driver for land-use change while also sensitive to the impact of climate change.

The Climate Impact of Agriculture

Agriculture activities emit several GHGs, carbon dioxide (CO2), nitrogen dioxide, and methane.

According to FAO Greenhouse Gas Emissions from Agri-food System Report 2022, agri-food sector emissions contributed 31% of emissions across all sectors in 2020.

The most important contributors to global agri-food systems emissions were C02 from deforestation and methane from livestock, which together represented almost 40% of total emissions from the agri-food sector.

Trade-Related Climate Measures in Agriculture

• Emission trading systems

Emission trading systems (ETS) is a system where emitters can trade emission to meet their emissions target.

Polluters who would find it costly to reduce their emission are allowed to buy emission allowances from polluters that can abate at lower costs.

There are two main types of trading systems: “Cap-and-trade systems” and “baseline-and-credit systems”. In a cap-and-trade system, an upper limit on emissions is fixed, and emission permits are either auctioned out or distributed for free according specific criteria.

Under a baseline-and-credit system, there is no fixed limit on emissions, but polluters that reduce their emissions more than they otherwise are obliged to can earn ‘credits’ that they sell to others who need them in order to comply with regulations they are subject to.

Agriculture is not included in most ETS. There are concerns about how complicated it could be to expand ETS to include agriculture and how to deal with carbon removals in the sector.

The complexity arises from the diverse and diffuse nature of agriculture emissions. Additionally, addressing carbon removals through practices such as soil carbon sequestration and reforestation presents challenges in verification and permanence, complicating their inclusion in the trading system. However, there are plans to include the sector in the New Zealand ETS in 2025.

• Border carbon adjustments

Border carbon adjustments (BCAs), border tax adjustments (BTAs), and carbon border adjustment mechanisms (CBAMs) all refer to this notion of imposing a duty on imports based on the amount of carbon emissions resulting from the production of the item in question.

A border carbon adjustment mechanism can economically disadvantage exporters of carbon-intensive products. Additionally, its implementation presents practical challenges, including accurately measuring the carbon footprint of traded goods, determining appropriate country and sector coverage, and managing the complexities of supply chains.

Example is the EU’s carbon border adjustment mechanism (CBAM). Starting 2026, high carbon-generating companies importing goods to the EU will have to pay a carbon border tax, estimated at €75 per ton of C02 emissions.

• Carbon Tax

A carbon tax directly sets a price on carbon by defining a tax rate on greenhouse gas emissions. Each year, emitters are to pay for very ton of GHG emissions they discharge into the atmosphere.

Agriculture, forestry and other land use is estimated to account for 22% of global GHG emissions in 2019, being the third largest emitting sector after industry, electricity and heat production.

While the agricultural sector has so far been largely exempted from emissions mitigation policies such as carbon taxes and emissions trading schemes across the world, some countries are contemplating including agricultural activities in comprehensive climate packages.

Applying a carbon tax to agricultural activities would raise the cost of fertilizer, rendering marginal land cultivation unprofitable.

• Removing agricultural subsidies

The introduction of policies to decarbonize supply chains will eventually pressure governments to reduce financial support for intensive farming systems.

According to ITC, eliminating agriculture related subsidies would reduce 11.3 million tons of C02 equivalent globally by 2030.

However, the loss of agricultural subsidies would have a negative impact on producers. It would decrease crop production, livestock farming production and farm employment. It would also affect consumers due to lower output and higher prices.

[Featured Photo Credit: EqualStock | Pexels]

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KPMG has made key Insurance industry predictions for the year 2024. These are trends to watch out for:

1. Ramp up of strategic M&A activity

With the stabilization of interest rates, companies are expected to transition from a passive acquisition approach to a more strategic one.

Insurance companies likely will divest non-core businesses that are not generating returns and acquire businesses that offer new capabilities. In particular, the insurtech space has created tremendous innovation that larger companies may be interested in pursuing.

This will enable them to improve their competitive position and drive growth. KPMG’s CEO Outlook revealed that over half of insurance CEOs (55%) are likely to pursue acquisitions that will significantly impact their organization, indicating that insurance companies are recognizing the importance of M&A as a tool to achieve their strategic goals.

2. Generative AI to transform operations and cut costs

The insurance sector is poised for transformation with the integration of Generative AI. Business leaders anticipate that AI can revolutionize daily operations by enabling their professionals to enhance communication with policyholders, streamline claims processing, and reduce fraudulent activities.

Additionally, AI can automate underwriting and pricing processes, leading to more efficient and accurate decision-making. Every company has its differences and how they will implement AI to solve their unique problems will not be a one size fits all solution.

Despite the potential benefits of AI, there are risks associated with its utilization, such as algorithmic bias and privacy concerns. A significant barrier to the success of insurance organizations is the lack of regulatory guidance, which is perceived by approximately 64% of insurance CEOs.

However, recent regulatory developments, such as the White House’s first-ever executive order on AI and the EU’s creation of the AI Act, are expected to encourage insurance leaders to embrace AI within their organizations while providing guardrails to protect them.

3. Addressing the talent shortage

While larger companies have the advantage of a greater talent pool, smaller companies may face greater challenges in sourcing individuals with technology expertise.

Finding employees with tech capabilities is important for organizations seeking to build a customer centric business model that will help them compile valuable customer data.

To address the talent shortage, companies will need to focus on both attracting tech-savvy talent while also upskilling current employees with Generative AI skills for the changing work environment.

4. Mitigating risks: Climate, cyber, and social inflation

Extreme weather events this year have underscored the importance of obtaining insurance. The frequency and severity of natural disasters have resulted in higher insurance claims and losses for insurance companies.

Some major companies have withdrawn from states such as California that are prone to natural disasters, while others have increased premiums, leading to a reduction of capacity and a need to deploy capital in new and different insurable risks.

Companies are likely to continue offering services and solutions to help homeowners mitigate risk including investing in new technologies and tools such as satellite imagery and climate modeling to provide support and resources to homeowners in the event of a disaster.

The anticipated SEC Climate Disclosure rule is expected to have a significant impact on the way companies disclose their climate-related risks to investors.

In addition, with the recent adoption of climate disclosure rules in California and upcoming compliance deadlines in Europe, companies are already starting to take proactive measures to comply with existing and anticipated rules.

With the rise of automation and artificial intelligence introducing new cyber risks, insurance businesses will need to create mitigation strategies to minimize vulnerabilities and prevent attacks.

Furthermore, social inflation has impacted the sector with increased claims costs, particularly in litigation, forcing insurers to reassess risk models and pricing strategies.

5. Staying ahead of the curve

The insurance industry has a promising future, but it must remain agile and innovative in their approach. By embracing new technologies and meeting the changing needs of policyholders, insurance companies can remain competitive and relevant in a rapidly evolving landscape.

(Source) (Featured Image Credit)

Managing Partner Eghosa Omoigui noted the fund’s goal of providing startups with their initial institutional funding and assisting in subsequent fundraising efforts.

“We want to sponsor a pipeline of high-quality founders that create high-quality companies that can be supported later by the increasing number of climate and energy-focused funds,” said Eghosa Omoigui.

The launch of this pilot fund comes in response to the growing trend of VC firms establishing funds dedicated to Africa’s climate sector. EchoVC joins the ranks of those addressing the dearth of early-stage funding for climate-focused startups in the region.

EchoVC has a history of investments in mobility, agriculture, climate, and energy startups, including notable names like Shuttlers and Complete Farmer. The Eco Pilot Fund I, totalling $2.5 million, represents the culmination of over a year of study and aims to fill the gap in supporting pre-seed stage companies essential for creating climate-resilient economies.

“The continent needs these pre-seed stage companies to create and deploy the solutions necessary to meet market demand and enable climate-resilient economies,” explained Taiwo Kamson, Principal at EchoVC.

The Eco Pilot Fund I intends to invest in up to ten startups at the pre-seed stage. Its primary focus includes startups providing access to finance, insurance, and markets for smallholder farmers in Africa. Additionally, renewable energy solutions and innovative approaches to urban transportation will be considered. While the fund has an African mandate, the majority of investments are expected to go to startups from Kenya and Nigeria.

EchoVC’s mission to support under-represented founders aligns with its mission of being the Sequoia Capital for underestimated founders and markets. The firm remains sector-agnostic and operates from offices in Africa, the US, and the UK.

The EchoVC team, boasting over 80 years of combined experience, actively supports the portfolio it has built over the last decade. The newly launched fund, along with the ongoing development of the Center of Excellence project, points to EchoVC’s zeal for fostering innovation and sustainability in the technology sector.

As EchoVC forges ahead with its mission, it anticipates that the lessons learned from the Eco Pilot Fund I will inform investments from its larger 2024 Eco Fund, scheduled for unveiling in the coming years.

EchoVC’s contribution to the tech ecosystem is reflected in its impressive investment statistics: 36 companies, 2,000+ employees in portfolio companies, $41 million+ deployed, and operations across 12 countries, including Nigeria, Kenya, Brazil, India, and the United States.

The meeting also involved representatives from the United Nations (UN).

The participants agreed to collaborate in identifying priority actions to attract private climate investment in emerging markets and developing countries (EMDCs), with a focus on achieving tangible outcomes in the near term leading up to COP28.

They acknowledged that the current level of climate investment in EMDCs is insufficient to meet the objectives of the Paris Agreement.

Therefore, they emphasized the importance of leveraging MDBs and other development finance institutions to unlock local and international private finance.

Recognizing that private capital will play a crucial role in bridging the financing gap for achieving net-zero emissions, the COP28 President-Designate, Dr. Sultan Al Jaber, and the UN Special Envoy for Climate Action and Finance, Mark Carney, expressed their support for this initiative. Mark Carney also serves as the Co-Chair of the Glasgow Financial Alliance for Net Zero (GFANZ).

The participants highlighted the need to strengthen technical capacity to develop a pipeline of viable climate projects and implement public policies that create a favorable investment environment for the green transition.

They emphasized that achieving a just and global net-zero transition requires innovative and effective solutions, particularly for mobilizing catalytic private investment in EMDCs

This was revealed by Temilola Sonola, the IFC’s EDGE and Green Building Market Transformation Programme Contact for Lagos, during her presentation at the Knight Frank Nigeria Breakfast Roundtable in Lagos over the weekend, which had the theme “Real Estate, Construction, and Tech: The Future of Real Estate Services in Nigeria.”

This occurred at the same time when real estate experts and businesses were admonished to consider the demands of 85% of Nigerians under the age of 50 while creating new buildings.

Sonola, who discussed “Revolutionary Ideas in Real Estate,” claimed that a recent IFC research revealed that investments in climate change have a potential value of about $24.7 trillion, with Africa receiving a $1 trillion part of it.

She clarified that the World Bank and IFC base their financing decisions on climate change, which is currently the most important factor under consideration.

She claimed that the IFC and the World Bank were interested in talking about climate change because it was a significant issue and because they thought it would help them carry out their mission of assisting in the eradication of poverty.

“We also believe that it’s a good investment opportunity. So if you see climate change right now as not making money, you are wrong. The reason is that we recently did a report that said that generally, the opportunity in terms of climate change is over $24.7 trillion.

“And for Africa, that is over $1 trillion, and who do you think that a chunk of it is going to go to in Africa? Definitely in Nigeria. So Nigeria will most likely receive about 7% of the $1 trillion investment opportunity.

“So we see it as an opportunity, and going further, we have decided that we are going to tackle climate change head-on in different areas. This is why we think that we have to definitely do something about climate change because it’s pushing more people into poverty and it’s like regressing the work that we have been doing over the years. So we have to do something about it.

“So we believe there is an investment opportunity and these are the focus areas for us in terms of climate change for the World Bank Group. We are looking at clean energy. So the people who do the solar, windmills, and so on, are more likely to get a loan from IFC than if you were buying a diesel truck,” he added.