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Design and financing for crop drying and storage technologies to strengthen food security in the face of climate change

Mali_agriculture_UNAMID
This technical assistance advances the following Sustainable Development Goals: 

Zero hunger

Goal2
Zero hunger

Decent work and economic growth

Goal 8: Decent work and economic growth
Goal8
Decent work and economic growth

Climate action

Goal 13: Climate action
Goal13
Climate action

This Technology Transfer Advances Mali's

Context

In Mali, climate variability threatens agricultural productivity and farmer livelihoods. Current methods of crop conservation lead to significant waste in the value chain, and weaken farmers' access to markets, reducing their revenues. Local entrepreneurs seek to install solar photovoltaic-powered processing and storage technologies to improve productivity and resilience, yet lack financial means to do so. The Action Group for Modernisation of Agriculture (GAMA), in Southern Mali aims to improve farming stability in the face of increasing vulnerability of crop production due to climate change. A key piece of their strategy is to use renewable energy source for drying, processing and storage technologies for mangoes, potatoes and gombo. Used at sufficient scale, these technologies increase shelf life and availability of the product to the market, thereby increasing resilience to change and food security. The project has considerable potential to attract private sector financing, but the upfront investment constitutes the main obstacle, and investors are not convinced of its bankability.

Technology Request

The Action Group for Modernisation of Agriculture (GAMA) in Southern Mali together with the Mali Folk Center; Ministry of Agriculture and Ministry of Environment requested support to address the technical and financial barriers faced in implementing the ambitious project of using renewable energy sources for drying, processing and storing technologies for mangoes, potatoes and gombo, as well as to showcase the bankability of such initiatives.

CTCN Support

The CTCN and partners, the Private Financing Advisory Network (PFAN) of the Climate Technology Initiative (CTI), in collaboration with Environment and Development Action in the Third World, provided the following technology assistance in Mali:

  • Review of the local project aiming at installing technologies using solar potential, to store and dry mangos, potatoes and gombos
  • Finalization of the business plan and related documents
  • Development of a cash flow model
  • Production of an independent feasibility audit to support investment decisions
  • Provided coaching and support of project members such as training on investor negotiations and facilitation of investor meetings
  • Design of a scaling up and communication strategy
  • Recommendations on appropriate technology options

For further details, please see Documents section below.

Key technology addressed

Expected Results

Short term

  • Local stakeholders will gain the capacity to make a compelling case for investment from national or international financiers
  • A showcase of the bankability of such initiatives
  • Development of financial and business model for project 

Long term 

  • Removal of technical and financial barriers faced in implementation of the project
  • Deployment of simple semi-industrial drying and storage facilities enabling off-season availability of mangoes, potatoes and okra
  • Access to higher margin markets at national and international level for dried fruits and vegetables is increased
  • More than 500,000 USD injected every year in local economy, creating a multiply effect in the economy
  • Increased food security for household throughout the year