Tag: climate resilience

IMPACT ON CLIMATE

We like to share examples on how financial inclusion can advance climate-smart solutions and drive inclusive progress. A series of impactful projects of all shapes and sizes in emerging countries that address climate change, and help people adapt to and be more resilient to climate hazards. We at Incofin hope these stories of entrepreneurs, of financial institutions, of cooperatives, of impact organisations around the world can inspire how impact investors can contribute to a sustainable transition to a climate resilient economy.

Climate change is now. We must ensure that the most susceptible to the impacts of climate change – who are often already among the most vulnerable – are not left behind. Climate change is as much an environmental challenge as it is one of livelihood and social justice. Low-income communities (not the least women in those communities) are on the frontline of the dire effects of climate change. With the proper financial and technical solutions they are able to adapt, build resilience and mitigate climate change. Financial inclusion is well positioned to play a key role in empowering low-income vulnerable populations to adapt to climate change.

It brings us this time to Banco Pichincha in Ecuador, and especially to Maria. Enjoy her story.

 

Watch here the example of Mufin Green in India:

 

28/09/2023

Incofin invests EUR 2 million in PEBCo-Bethesda in Benin. The funding comes from the Agricultural Liquidity Fund (ALF) and is a testament to Incofin’s dedication to advancing sustainable agriculture and climate resilience through financial inclusion. This resonates deeply with Benin, a country where agriculture sustains livelihoods and contributes 30% to GDP.

With more than 70% of its population relying on agriculture, the importance in Benin of agriculture cannot be overstated. Established in 1996, microfinance institution PEBCo Bethesda Benin has emerged as a catalyst for change, with a core mission to empower low-income communities, particularly women, in this agrarian landscape.

It facilitates farmers to purchase seeds and other inputs and supports the necessary investments to ensure revenue generation. This approach not only enhances the financial prospects of individuals but also contributes to the broader economic development of the populations it serves.

 

Comprehensive financial services

PEBCo’s efforts encompass a range of financial and non-financial services, including savings, agricultural loans, education loans and green loans for the acquisition of solar panels, among others.

 

Confronting climate challenges

However, Benin, like many other countries, grapples with the adverse effects of climate change. In recent years, unpredictable and erratic weather patterns, marked by floods and droughts, have cast a long shadow over the agricultural sector in Benin. It has not only imperiled food security but also jeopardized the livelihoods of countless individuals.

PEBCo has enlisted the expertise of an agricultural specialist to assist the MFI and its client sin adapting to and mitigating climate risks. This proactive approach underscores its commitment to safeguarding the interests of its borrowers and promoting sustainable farming practices.

Incofin, committed to inclusive progress and sustainable agriculture

Incofin’s debt investment of EUR 2 million in PEBCo originates from the Agricultural Liquidity Fund. The fund seeks to support actors in the sustainable agrifood value chain. This investment reaffirms Incofin’s commitment to fostering agriculture in Africa and the belief in PEBCo’s pivotal role in this endeavor.