EPAR TECHNICAL REPORT #411
Publication Date: 09/09/2022
Type: Research Brief
Abstract

Climate change is predicted to have increasingly dire effects on the largely rainfed agriculture of sub-Saharan agriculture, a livelihood that also contributes to climate change. Within this context, multilateral funding institutions are increasingly funding projects devoted to the adaptation to or mitigation of climate change. Data from the Organisation for Economic Development (OECD) provide an overview of climate-related project data, but the intersection of climate-related projects and projects intended to develop rural and agricultural economies is less explored. This paper focuses on climate-related projects in sub-Saharan Africa in the context of rural and agricultural project funding. We use a custom dataset from three separate multilaterals (the World Bank, African Development Bank, and International Fund for Agricultural Development) to answer the following research questions:

  1. What proportion of agriculture-related lending across the three multilaterals of interest has a climate component?
  2. Which countries are borrowing most for climate-related agricultural projects? Is the amount of borrowing correlated with a country’s climate risk?

 

Of all financing projects in our dataset (N = 1,846), we identified 203 as being climate-related (11%) and 505 as being related to rural agricultural economies (27%). Of the $26.5 billion annualized project funding, rural and agricultural financing accounts for $6.5 billion (24.6%) while climate projects receive $1.97 billion (7.4%). The World Bank funds approximately half of all agriculture projects in the dataset, with the AfDB funding just under 30% and IFAD just over 20%.

Annual average borrowing amounts from multilaterals for climate-related rural/agricultural economies projects varies widely across sub-Saharan Africa. The major borrowers include Ethiopia ($150 million), Nigeria ($105 million), and Kenya ($102 million). The proportion of multilateral borrowing for climate-related projects among all rural agricultural borrowing also varies substantially across sub-Saharan Africa; the Seychelles and Eswatini devote the largest proportions of rural agricultural borrowing toward climate work (100% and 69.8%, respectively). Fourteen SSA countries devote between 15% and 30% of rural agricultural borrowing to climate-related projects and fifteen have not received any multilateral financing for climate-related rural/agricultural economies projects.

We do not find a statistically significant relationship between a country’s Climate Risk Index and the proportion of annual rural/agricultural economies borrowing focused on climate.

 

Suggested Citation:

Financing for Climate Change in Africa: A View of Sovereign Borrowing in Agriculture from Multilateral Funding Institutions . EPAR Technical Report #411 (2022). Evans School of Public Policy & Governance, University of Washington. Retrieved <Day Month Year> from https://epar.evans.uw.edu/research

EPAR Research Brief #360
Publication Date: 02/05/2018
Type: Research Brief
Abstract

In this brief, we report on measures of economic growth, poverty and agricultural activity in Ethiopia. For each category of measure, we first describe different measurement approaches and present available time series data on selected indicators. We then use data from the sources listed below to discuss associations within and between these categories between 1994 and 2017. 

EPAR Technical Report #349
Publication Date: 11/30/2017
Type: Literature Review
Abstract

Donor countries and multilateral organizations may pursue multiple goals with foreign aid, including supporting low-income country development for strategic/security purposes (national security, regional political stability) and for short-and long-term economic interests (market development and access, local and regional market stability). While the literature on the effectiveness of aid in supporting progress on different indicators of country development is inconclusive, donors are interested in evidence that aid funding is not permanent but rather contributes to a process by which recipient countries develop to a point that they are economically self-sufficient. In this report, we review the literature on measures of country self-sufficiency and descriptive evidence from illustrative case studies to explore conditions associated with transitions toward self-sufficiency in certain contexts.

  

EPAR Technical Report #327
Publication Date: 03/22/2016
Type: Literature Review
Abstract

Common aid allocation formulas incorporate measures of income per capita but not measures of poverty, likely based on the assumption that rising average incomes are associated with reduced poverty. If declining poverty is the outcome of interest, however, the case of Nigeria illustrates that such aid allocation formulas could lead to poorly targeted or inefficient aid disbursements. Using data from the World Bank and the Nigerian National Bureau of Statistics, we find that while the relationship between economic growth and poverty in Nigeria varies depending on the time period studied, overall from 1992-2009 Nigeria’s poverty rate has only declined by 6% despite a 70% increase in per capita gross domestic product (GDP). A review of the literature indicates that income inequality, the prominence of the oil sector, unemployment, corruption, and poor education and health in Nigeria may help to explain the pattern of high ongoing poverty rates in the country even in the presence of economic growth. Our analysis is limited by substantial gaps in the availability of quality data on measures of poverty and economic growth in Nigeria, an issue also raised in the literature we reviewed, but our findings support arguments that economic growth should not be assumed to lead to poverty reduction and that the relationship between these outcomes likely depends on contextual factors.

EPAR Technical Report #300
Publication Date: 08/21/2015
Type: Literature Review
Abstract

This report reviews approaches to results measurement used by multilateral and bilateral donor organizations and highlights trends and gaps in how donors measure and report on their performance. Our review consists of assessing donor organizations in terms of their institutional design and levels of evaluation for results measurement, their organizational processes for measuring types of results including coordination and alignment with recipients, outputs and implementation, outcomes and impacts, and costs and effectiveness, and their processes for reporting and using results information. We collect evidence on 12 bilateral organizations and 10 multilateral organizations. The evidence review includes multi-country reviews of aid effectiveness, peer reviews by other donor organizations, donor evaluation plans and frameworks, and donor results and reporting documents. The report is based on an accompanying spreadsheet that contains the coded information from the 22 donor organizations. We find that donors report several types of results, but that there are challenges to measuring certain results at the aggregate donor level, due to challenges with funding and coordination for results measurement at the project, country, portfolio, and donor levels. Approaches to results measurement vary across donor organizations. We identify some trends and differences among groups of donors, notably between bilateral and multilateral donors, but overall there are no clear delineations in how donors approach results measurement. 

EPAR Technical Report #299
Publication Date: 04/22/2015
Type: Literature Review
Abstract

Aid results information is often not comparable, since monitoring and evaluation frameworks, information gathering processes, and definitions of “results” differ across donors and governments. This report reviews approaches to results monitoring and evaluation used by governments in developing countries, and highlights trends and gaps in national monitoring and evaluation (M&E) systems. We collect evidence on 42 separate government M&E systems in 23 developing countries, including 17 general national M&E systems and 25 sector-specific national M&E systems, with 14 focused on HIV/AIDS, 8 on health, and 3 on agriculture. The evidence review includes external case studies and evaluations of M&E systems, government M&E assessments, M&E plans, strategic plans with an M&E component, and multi-country reviews of M&E, accountability, and aid effectiveness. We evaluate harmonization of government and development partner M&E systems, coordination and institutionalization of government M&E, challenges in data collection and monitoring, and analysis and use of results information. We also report on key characteristics of M&E systems in different sectors. 

EPAR Research Brief #63
Publication Date: 02/05/2010
Type: Research Brief
Abstract

This research brief reports on full time equivalent (fte) positions devoted to research and development of major food and cash crops in Sub-Saharan Africa (SSA). Data on fte by country and crop were collected from individual Agricultural Science and Technology Indicator (ASTI) country briefs. ASTI data are obtained from unpublished surveys conducted by CGIAR centers. Our report includes 23 countries in SSA. 

EPAR Research Brief #48
Publication Date: 09/11/2009
Type: Research Brief
Abstract

On July 10, 2009 at the Italy G8 summit, attendees issued a joint statement pledging to contribute $20 billion towards agricultural development and food security in the developing world over the next three years. This research brief notes the status of the contributions made to the L’Aquila Food Security Initiative and whether any of the $20 billion will be allocated to agricultural research. We conclude that no declarations have been made as of September 2009 on how much of the $20 billion will be allocated to agricultural research, and which types of research will be funded by the initiative.