Ghana, known for its lush landscapes and rich natural resources, has long been a major player in the global cocoa industry. The West African country is the second-largest producer of cocoa in the world, after Ivory Coast. Cocoa supports millions of livelihoods and contributes significantly to the national economy. According to the UN Development Programme, Ghana supplies around 20% of the world’s coca and cocoa accounts for the country’s 15% of GDP. Furthermore, most cocoa farmers are smallholders who lack the skills and resources to improve their farms and their productivity remains low and poverty high and the next generation of farmers are increasingly looking elsewhere for income opportunities. As previously reported about the ongoing devastating tree disease, skyrocketing cocoa futures. However, another threat farmers in Ghana are facing increasingly is illegal gold mining.

Illegal gold mining, often referred to as “galamsey” (a term derived from “gather them and sell”), has risen across Ghana’s rural regions. The consequences for affected farmers are destruction. Cocoa farms, especially in the western and Ashanti regions, have become hotspots for these activities. According to a study conducted four years ago by Ghana’s cocoa marketing board Cocobod, around 20,000 hectares of land has been lost to galamsey. According to documents obtained exclusively by Reuters, Cocobod estimated that 590,000 hectares of cocoa plantations since 2018 have been infected with swollen shoot, a virus which ultimately kills the tree. Today, Ghana has some 1.38 million hectares of land under cocoa cultivation, a figure which also includes infected trees that are still producing cocoa. “If you consider the number of farms that have been destroyed, clearly the impact is one that has been enormous,” said Fifi Boufour, Cocobod communications director. Many farmers are giving up ground to gold miners. “If you have all these farms being lost, productivity being lost as a result of illegal mining, then its impact on the industry is one we are really struggling to deal with,” said Boufour.

In recent years, these illegal miners have sourced their machinery from China which has accelerated the destruction of forests and farms, as well as polluting the waterways in northern and eastern Ghana. “I [came] here to find gold. First we cut down the trees, then we burn them. Then we start digging the soil to open the pit,” says a young man in the middle of a cocoa plantation in Ghana’s Ashanti Region. He told Mongabay, “We have to open the pit, then once the soil has been turned, we use electric pumps [of] water with heavy speed to spray water over the land to reach where the gold is.” The individual aged 25 years old, who requested anonymity, has spent 10 years since he started working in artisanal and illegal mining.

A recent Reuters investigation highlighted how serious this problem is, telling a story of Janet Gyamfi who last year had 6,000 coca trees on a 27-hectare plot in western Ghana but today less than a 12 remain. “This farm was my only means of survival,” the 52-year-old divorcee told Reuters, tears streaming down her cheeks. “I planned to pass it on to my children.”

Because the process of illegal gold mining involves the extensive clearing of land, the use of heavy machinery, and the application of toxic chemicals such as mercury and cyanide do great damage to the soil. This devastates the local ecosystem but also contaminates water sources, leading to long-term health hazards for the communities. Once fertile cocoa farms are left barren and unproductive, undermining the country’s agricultural foundation. With the biggest impact on farmers and their livelihoods.

The environmental impact of illegal gold mining is catastrophic. The deforestation and soil degradation caused by mining operations result in the loss of biodiversity, farms, and the disruption of natural habitats. Cocoa farming is a sustainable livelihood that supports long-term economic stability. In contrast, illegal mining comes at the cost of environmental destruction and the loss of arable land. It takes about five years (from seed) for a cocoa tree to grow and mature and start to produce cacao beans. Since it takes around five years, this problem undermines Ghana’s position in the global cocoa market and threatens farmers’ ability to recover and grow cocoa trees again.

The Need for EUDR Regulation

I think addressing the issue of illegal gold mining on cocoa farms requires serious robust government intervention to hold those responsible to account because protecting farmers and their properties should be paramount which would encourage young people to engage in farming, knowing they will not be chased out from their farms by illegal miners. There is also a need for effective regulatory frameworks. One such potential solution is the implementation of the European Union Deforestation Regulation (EUDR).

The EUDR aims to ensure that products entering the EU market do not contribute to deforestation and forest degradation, which is directly relevant to the cocoa industry. The EUDR applies to wood, rubber, palm oil, soy, beef, coffee, and cacao. Wood products which are connected to harvesting, have additional ‘degradation-free’ requirements. But, the EUDR does not apply to gold or precious metals. This means illegal gold miners can force out a farmer from their land, cut down cocoa trees, mine gold and export it to the EU without issues.

Over $30 billion worth of gold, or more than 435 metric tons, was illegally smuggled out of Africa in 2022, according to a report by Swissaid, an aid and development group based in Switzerland. The report found that between 32% and 41% of the gold produced in Africa was not declared and in 2022, Ghana was the largest gold producer in Africa, followed by Mali and South Africa. The destination for the illegal gold was the UAE, where 405 metric tons of gold ended up.

In short, illegal gold mining endangers Ghana’s cocoa industry, the livelihoods of its farmers, nature and also poses a serious danger to the economic stability. This is significant for the central government. If one has regard to the extent of damage caused to cocoa trees and forests by gold mining, it becomes obvious that including gold in EUDR is key. Additionally, stopping illegal trade would require cooperation on a global scale. By doing so both domestically and internationally, it guarantees that Ghana’s cocoa industry remains a source of prosperity and sustainability for generations to come without requiring farmers, their farms or nature to suffer.

By Atak Ngor

Impact of the floods (as of 16 May 2024):
➊ A total of 57,120 households have been displaced affecting around 285,600 people.
➋ 187 camps were set up across 25 Counties.
➌ 65,493 people have been integrated into the community following the Nairobi River evacuation exercise.
➍ 291 people have lost their lives due to severe weather conditions.
➎ 188 people have been reported injured, while 75 people are currently missing.
➏ 412,763 people have been affected throughout the country (16th May, govt. press release).

Education and health
➊ 64 health facilities damaged in 12 Counties.
➋ 53 reported cases of cholera.
➌ A total of 1,967 schools have been affected by floods.

Agriculture and livestock
➊ The damage to agriculture spans 168,092 acres of land.
➋ Around 8,722 livestock were reported dead (14th May, govt. press release).
➌ 1.2 million livestock have been vaccinated against the Rift Valley Fever and an additional 450 sheep vaccinated against the blue tongue disease.

Sources: Press release published on 14th and 16th May 2024 by Sen Dr. Isaac Maigua Mwaura (Government Spokesman of Kenya).

Save the Children’s report paints a concerning picture for Kenyan education. At least 62 primary schools have been submerged or destroyed by flood waters, leaving more than 15,000 children with nowhere to learn as the schools reopened this week. The damage to schools will likely have some long-term consequences, as it may take time to rebuild. Furthermore, over 20,000 toilets have been damaged or destroyed, posing serious health risks like the spread of waterborne diseases to over 1.5 million school children already facing educational setbacks, as a result of the floods. The floods affected a total of 1,967 schools and the government is assessing the status of all of the schools and fast-tracking the repair, according to a government spokesperson.

Save the Children is calling for coordinated action to swiftly help children and families affected by the crisis. These efforts include cash transfers, distributing hygiene kits, and household kits to affected families. Save the Children’s Acting Country Director for Kenya and Madagascar, Mohamed Abdiladif, said: “The impact of the floods on children is disastrous and threatens their rights. As a child rights organisation, we recognise the importance of coordination of efforts to ensure that children’s lives and those of their families are restored to normalcy. We are working round the clock to deliver lifesaving interventions such as cash transfers to affected households in Nairobi and Garissa Counties and are calling for support from [the] private sector, development partners and well-wishers to scale up our response. We also advise parents and caregivers to exercise caution as schools re-open.”

The World Health Organization (WHO) has also recently issued a concerning report of a cholera outbreak in Eastern Kenya, one of the areas hardest hit by the flooding. According to Dr Pius Mutuku, medical epidemiologist in the Ministry of Health, 14 health facilities have closed and a major water treatment plant has been affected by flooding, leading to a shortage of potable water for 3,000 people.

According to the latest report by government spokesman Hon. Dr. Isaac Maigua Mwaura, the floods have also impacted a total of 64 health facilities in 12 Counties and damaged 419 Water Sanitation and Hygiene (WASH) facilities in 20 Counties, according to the 13th May report for the latter. Furthermore, 53 cholera cases have been reported so far with the Ministry of Health together with the Kenya Red Cross, conducting medical outreach programmes for cholera control and other waterborne diseases in Tana River and Marsabit Counties. According to Hon. Mwaura, on the 13th of May, 30 public health officials were deployed for a risk assessment of all 157 internally displaced camps and for the evaluation of nutrition, as well as the safe drinking water, sanitation and hygiene (WASH) points.

Essential food supplies of rice and beans totalling 1.2 million kilogram have been distributed to support affected communities in Busia, Homabay, Kisumu, Machakos, Makueni, Tana River, Kilifi, Nakuru, Garissa, Turkana, Isiolo, Migori, Kajiado, Nairobi, Nyandarua, Kiambu and Muranga Counties. The government expressed need for more food, medical kits and non-food items to affected Counties and where search and rescue operations are still ongoing including Narok, West Pokot, Nyeri, Siaya and Kirinyaga Counties. This highlights the challenges facing so many people in the country and the urgent need for further assistance.

The Kenyan government is facilitating logistical support, temporary shelter and essential supplies to individuals and households affected throughout the country. The government has also allocated over $3.7 billion KES and has already issued $20,000 KES to 40,000 affected households. Their local partners have included KEPSA Foundation, MPESA Foundation and the Kenya Red Cross who have distributed food and non-food items. Team Pankaj also donated 16,000 mattresses, 4,000 hampers, 16,000 cups and plates and 1,600 blanks to affected households. Other corporations, industry players, and public servants have also contributed to goods.

Support has also come from international organisations and countries, the government has received $7 million USD from the UN, 75 tonnes of food items from UAE to those affected households. The UK government has also provided support worth $150 million KES which was channelled through UNICEF who provided cash assistance to around 6,900 households. 40 tonnes of relief food was also recently delivered by a plane for those affected from the Government of India. The Kenya Red Cross remains a key partner of the government during this situation.

Furthermore, the Kenyan government has implemented evacuations for people living in high-risk areas near rivers, dams, and other flood prone areas. This has unfortunately caused friction, with some residents feeling the government is not providing adequate support for relocation. The demolition of homes built in flood zones has further strained relations. However, President William Ruto has pledged financial assistance to affect families and vowed to rebuild essential infrastructure. The long-term success of these measures will depend on effective collaboration with the local communities and ensuring their needs are met throughout the recovery process is paramount.

From March to May, flooding and landslides in East Africa are affecting almost a million people in Burundi, Kenya, Somalia and Tanzania. As unusually heavy rains have continued in the region, exacerbated by the 2023–24 El Niño climate phenomenon which resulted in higher than average rainfall in the region. According to United Nations’ climate crisis coordinator Reena Ghelani, who has been visiting affected communities, “People are coming into this situation of flooding having just survived flooding late last year that affected 5 million people in the region, and before that, drought for five consecutive years,” Ghelani says. “It’s estimated that by 2030, we could have 10 disasters a week happening because of climate change. These regions are going to face the brunt of the climate crisis first.”

The Kenya Conference of Catholic Bishops has called for “swift action” and “generous acts of charity” to mitigate effects of flooding that has so far left more than 250 people dead and a trail of property damage and called the ongoing events as “catastrophic.” The bishops call on both county and national governments to mobilise their disaster management resources with “great urgency” to prevent further death and destruction. This includes not only immediate relief efforts but also long-term strategies to mitigate the effects of climate change and prevent future disasters of this scale.

Kenya faces a long and challenging road to recovery. Ensuring transparent and inclusive relocation efforts, and prioritising public health measures are crucial steps towards a more secure future. However, the government is working to improve the situation and support those affected by the floods, alongside aid organisations and the international community. Kenya will certainly come out stronger, but there is urgency for the government to invest heavily in climate-resilient infrastructure.

Government emergency contact details:

1. Kenya Meteorological Department (Website) (Twitter)
2. Kenya Government Spokesperson: Hon. Dr Isaac Mwaura (Facebook)
3. Kenya Red Cross (Website) (Facebook)

About the author
Atak Ngor

Get ready for a bittersweet reality: chocolate lovers. The price of your favourite chocolate treat is about to take a bite out of your wallet. Cocoa futures, which are contracts predicting future prices, have skyrocketed in recent months to a record-breaking US$12,800 per metric ton. This surge is largely due to a confluence of factors wreaking havoc on cocoa production in West Africa, the world’s dominant producer.

For decades, West Africa, particularly Côte d’Ivoire and Ghana, has been the chocolate kings, supplying 60 percent of the world’s cocoa output. However, their reign is facing some serious challenges. The first culprit is unfavourable weather. Due to unpredictable rainfall patterns and extreme temperatures have stressed cocoa trees, leading to lower yields and even crop failure in some areas. These extremes are likely due to climate change, a trend expected to worsen in the coming years.

Secondly, a devastating tree disease known as cocoa swollen shoot virus (CSSV) is spreading like wildfire through West African plantations. This virus weakens and stunts cocoa trees, ultimately leading to their death. The virus is transmitted by mealybugs, which feed on the leaves, buds, and flowers of the trees. Farmers are struggling to contain the outbreak, further diminishing their output. This outbreak is having devastating effects on farmers in West Africa where thousands of cocoa farmers earn just $1 per day.

What is causing this virus?
Rising temperatures and erratic rainfall are becoming the norm, disrupting traditional growing seasons and creating ideal conditions for diseases like CSSV to thrive. Additionally, decades of intensive cocoa farming practices may have depleted the soil’s nutrients, making trees more susceptible to disease. The impact of these challenges is undeniable. So, as the world faces a global cocoa shortage, it has pushed futures prices higher and higher. This will inevitably trickle down to consumers, with chocolate manufacturers forced to raise prices to maintain their profit margins. So, buckle up for potentially high prices for chocolate bars and cocoa treats in the near future.

Are there any hopes? Yes!
The only cure for CSSVD is to cut out visibly infected trees and the government eradication campaign in Ghana has cut out more than 200 million trees since 1946 to try and stop the disease from spreading (Dzahini-Obiatey, H, Akumfi Ameyaw, G, Ollennu, L. A 2006). Scientists have been trying to fight CSSV for decades, mainly focusing on creating disease-resistant cocoa plants and weakening the virus itself by using a milder version, and trying to control the mealybug that spreads the disease.

Some researchers have explored using regenerative practices such as growing other plants alongside cocoa trees for shade or as a barrier but this has not been studied much. Even though these methods show promising results. Studies comparing these methods show that traditional approaches such as breeding resistant plants or using a mild strain of the virus may only reduce infections by 30 percent. However, growing other trees alongside cocoa trees seems much more effective with studies suggesting that “potential of diversification measures (shading/agroforestry and barrier (strip) cropping) seems to be considerably higher (40 and 85 percent, respectively),” (Andres, C, Gattinger, A, Dzahini-Obiatey, H. K, Blaser, W. J, Offei, S. K, Six, J 2017). Agroforestry is not simply about farming practices but it combines respect for nature with productive agriculture. It encourages sustainable land use, forest conservation, and restoration of degraded land due to intensive cocoa production (Damala, H 2022).

Commodities Insights
Given the surge in the prices of cocoa futures as a result of the drop in supply, it is imperative for commodity traders to keep track of supply chains and forecast shortfalls in production. The use of Earth Observation data can help traders keep track of agricultural commodities right from the farm. Through the tracking of cocoa production regions, for example, and yield prediction from satellite data, it is possible for traders and others to predict production shortfalls and attendant rises in cocoa futures prices. The adoption of satellite-based tools to better understand ecological conditions across farmlands and how these impact supply is one of the ways businesses can manage risks more effectively whether that be from crop disease, climate change or other factors. The digital measurement, reporting, and verification (dMRV) solutions developed by Shamba Network are a great example of the tools available to market players in this regard.

Conclusion
As the cocoa swollen shoot virus continues to negatively affect farmers in West Africa, governments in the regions and different stakeholders should engage to improve the sector, farmers livelihoods, and create awareness. There is certainly a need to improve farmers’ compensation, offer affordable insurance and incentivising farmers to adopt regenerative practices to increase their diversification measures. As the future of chocolate remains uncertain, one thing is clear: the world’s demand on sweets is putting a strain on cocoa production.

Data source: Business Insider

About the author
Atak Ngor

END…

In this blog post, we will explore the need to shift climate financing away from solely supporting governments and instead invest directly into small-to-medium-scale grassroots initiatives through collaborating with non-governmental organisations (NGOs), businesses, community groups, and local governments across Africa to deliver specific initiatives. Public goods platforms such as Gitcoin can further empower this shift by fostering transparent and efficient financing allocation with the use of blockchain technology.

There have been documented cases where financing intended for climate adaptation or community development initiatives disappears unaccounted for or very little reaches the intended beneficiaries. Grants and loans designated for these purposes never materialise on the ground. Therefore, it requires a paradigm shift towards a grassroots approach, moving away from the current top-down model that often funnels resources into personal bank accounts or inflates government budgets. This change could not only address corruption but also enhance transparency and ensure funds are efficiently utilised for impactful climate initiatives, particularly during this critical time when financing is desperately needed.

Empowering local solutions
1. Regional Grant Management Organizations: Establish organisations in key African regions to vet and distribute financing to successful applications. These applications could come from on-the-ground projects, NGOs, businesses, community groups, or local governments.

2. Collaborative Project Design: Facilitate collaboration among stakeholders such as community groups, NGOs, businesses, and local governments. Working together, they can design, implement, and deliver projects that best address specific community needs. Proposals from these collaborations could be made public, allowing the public to vote and determine which grassroots initiatives should receive financing. Taking inspiration from the Gitcoin model (more on this shortly). Requiring mandatory project updates and reporting is also key.

3. Direct Partnerships: International organisations with the funds can directly partner with relevant stakeholders to deliver projects. For commercially-focused projects, ensure the community has a stake in the project alongside the partnering NGO, local business or local governments. This fosters skill transfer and ensures the project’s long-term sustainability.

Case study 1: Gitcoin Grants and Quadratic Funding
Traditionally, climate financing has channelled through national governments and multinational NGOs. While this approach aims to support overarching climate policies and strategies, concerns regarding corruption, misallocation of funds, and high administrative costs remain significant. The centralised, top-down approach often hinders effective project implementations, as funds may not fully reach their intended stakeholders which are often vulnerable communities.

Gitcoin, a platform founded by Kevin Owocki in 2017 with the mission of building and sustaining digital public goods, offers a unique and powerful alternative for financing projects worldwide. Gitcoin’s innovative Quadratic Funding model leverages matching contributions to amplify the impact of individual donations. This approach has demonstrably helped communities deploy over $35 million towards public goods initiatives in the past four years, including projects across Africa in countries like Colombia, Uganda, Turkey, Kenya, Nigeria, and Tanzania. Some examples include KOKO DAO, a project working with rural Colombian communities to create viable economic models that serve as alternatives to small-scale deforestation. Another example is Atlantis, a project in India fostering resilience and regeneration for climate. Gitcoin has played a key role in this effort. “Gitcoin has played an important role in being the go-to place for us to raise funds for Atlantis,” said Irthu Suresh, Co-Founder and CEO of Atlantis.

Closer to home, Uganda’s Ayowecca Uganda is a community organisation that provides programs benefiting local communities, its Founder and CEO Jonathan Olwenyi told me, “If Gitcoin wasn’t there, the milestone we’ve achieved in the past years would have not [been] reached.” Olwenyi added, “It’s hard to get fundings through the government as the criteria is stressing and corruption in the system.” Other outstanding projects that Gitcoin has played an important role in supporting impactful projects in Africa, including Shamba Network, Kawagumba Village Project, ReFi Lagos, Treegens, and The Solar Foundation, just to name a few.

Case study 2: Anticipatory cash transfers for climate shocks in the Horn of Africa
In September 2023, a pilot program launched to test using blockchain-powered smart contracts for anticipatory cash transfers to pastoralist communities in Kenya. Led by Mercy Corps Ventures, the pilot works with Fortune Credit, Shamba Network, and DIVA Technologies. Focused on Laikipia and Kajiado counties, the program aims to deliver funds faster in times of drought. Donations were held securely in a smart contract. When predefined conditions, like low NDVI indicating drought stress, are met, the smart contract automatically disburses funds to enrolled pastoralists’ mobile money accounts, likely M-Pesa wallets.

Case study 3: Bridges to Prosperity
Bridges to Prosperity (B2P) is a non-profit organisation founded by Ken Frantz that partners with local governments to connect communities through pedestrian trail bridges. Since its creation, the non-profit has built 500 trail bridges, serving over 1.8 million community members throughout the world. B2P demonstrates what is possible with direct collaboration with local governments and communities.

Rwanda represents B2P’s first scaled program
Under a 5-year MoU with several national-level ministries, B2P works with district governments in a reimbursement model to construct trail bridges across the country.

Learn more here.

Conclusion
The current top-down approach to climate financing in Africa, relying on national governments, has proven susceptible to corruption and inefficiency. Therefore, it makes more sense to direct financing to small-to-medium scale, community-driven initiatives directly. These local projects possess a deep understanding of specific needs and challenges of each community, fostering impactful solutions. Furthermore, innovative blockchain platforms like Gitcoin offer a revolutionary path towards transparent and efficient financing allocation.

By prioritising transparency, collaboration, and local ownership, we can ensure resources reach the communities that need them most. This collaborative approach fosters trust and empowers communities to drive positive change. Ultimately, a shift towards grassroots initiatives, coupled with transparent financing mechanisms, can accelerate progress towards a more sustainable future for Africa, especially for those living in rural communities.

About the author
Atak Ngor

Introduction
COP28, held in Dubai from November 30th to December 13th, 2023, marked a historic milestone in the global fight against climate change. With over 85,000 attendees, including more than 150 Presidents and Prime Ministers, this summit became the largest climate gathering to date. Africa played a pivotal role in the discussions, advocating for increased financial support to address the continent’s climate challenges. In this blog, we explore the key outcomes of COP28, focusing on the funding commitments that hold the promise of a more resilient future for Africa.

At COP28, African nations sought to impress upon the global community the urgent need for more altruism in financially supporting targets to reduce global emissions. Despite being one of the lowest greenhouse gas emitters globally, the continent has borne the brunt of climate change’s harshest realities since 2010. The UNEP Adaptation Finance Gap Report 2023 highlighted an alarming annual shortfall of adaptation finance needs of climate-vulnerable developing countries, which stands at USD $194 to $366 billion per year, with adaptation finance needs in developing countries likely to be 10–18 times as great as finance flows — over 50 per cent higher than the previous range estimate according to the UNEP report. This poses a significant obstacle to translating climate plans into actionable initiatives.

From 2020 to 2030, the estimated funding required for African countries to meet their Nationally Determined Contributions (NDCs) is approximately $2.8 trillion, representing more than 93 percent of Africa’s GDP. Despite competing development priorities and high debt burdens, African governments have committed $264 billion of domestic public resources towards financing the implementation of their respective NDCs, amounting to 10 percent of the total estimated costs for implementation. The remaining $2.5 trillion needs to be sourced from the international donor community and the private sector. However, trust has been deeply undermined due to the failure of developed countries to deliver on an agreed climate finance target of $100 billion annually by 2020, made back in 2009.

Source: UN Environment Programme

Did You Know?
In 2020, 9 out of the 10 countries most affected by climate change were African countries, with extreme weather events only increasing in scale since then.

The lack of fair and equitable access to finance puts African countries most vulnerable to climate change at unprecedented risk. Without adequate support, the continent’s developmental aspirations, including industrialization and job creation, face significant challenges. This would extend the transitional period because African countries and the Global South want to develop their countries, industrialise and create jobs for their population. Ellen A. Wald, the author of ‘Saudi, Inc, The Arabian Kingdom’s Pursuit of Profit and Power’ told DW’s Business Beyond where demand for fossil fuels is headed: “I think demand is going to continue to rise. If you look at India, you look at China, you look at Africa, these are all developing areas that are seeking and will increase their consumption of fossil fuels. They’re not going to be able to do what they want to do developmentally just with renewables. Even if they do install a lot of renewables. It cannot replace that reliability and the efficiency that fossil fuels provide.”

Loss and Damage Fund
For the first time ever, a dedicated fund was established, the “Loss and Damage Fund,” to address the climate-related losses suffered by vulnerable nations. Pledges totalling $792 million were welcomed on the first day, offering hope to African nations grappling with rising sea levels, desertification, and extreme weather events. While the funds fall short of the actual funds needed, this marks a monumental step towards climate justice.

Green Climate Fund Gets a Boost
COP28 witnessed a boost to the Green Climate Fund’s second replenishment, with pledges totalling a record $12.8 billion from 31 countries. A substantial portion of this funding is earmarked for Africa, supporting crucial projects in renewable energy, climate-smart agriculture, and water management. This reaffirms the international community’s commitment to empowering Africa in its fight against climate change.

Beyond Pledges: Concrete Actions Taken
Beyond financial commitments, COP28 witnessed concrete actions like:

• Many African countries signed agreements for their development agenda to climate diplomacy.
• Alliance for Green Infrastructure in Africa (AGIA): The African Development Bank and its partners in Africa and internationally mobilised over $175 million for the AGIA.
• Bilateral and Multilateral Deals: Numerous agreements were inked, such as Nigeria’s energy deal with Germany and Rwanda also signed an innovative MoU with Singapore to enhance its carbon market.
• Kenya’s Green Projects: Kenya secured $4.48 billion for seven green projects, highlighting the continent’s proactive approach to sustainable development.

African Development Bank Group (AfDB)
On December 3rd, the African Development Bank Group (AfDB) presented its planned $1 billion facility to provide insurance to more than 40 million farmers across the continent against severe impacts of climate change. The facility was warmly praised by the World Food Programme (WFP), development agencies, insurance companies, and the private sector during a side event at COP28 in Dubai.

In the interlude between COP27 and COP28, the AfDB engaged in the global political discourse to contribute to shaping the COP28 narrative on key issues such as the Energy Transition, Nature-based solutions, Adaptation Finance, and Loss and Damage. At COP28, the Bank advocated for the delivery of the $100 billion per year climate finance pledge, the Bank took several concrete actions to mobilize climate resources, partnerships and solutions, with a strong focus on advancing adaptation and resilience across the continent.

It was only in September 2023 that the Bank announced a different $1 billion facility to accelerate climate financing for Africa’s youth businesses. The additional financing will boost YouthAdapt, a joint initiative between the Bank and the Global Centre on Adaptation. It invites young entrepreneurs and micro, small, and medium enterprises in Africa to submit innovative solutions and business ideas that have the potential to drive climate change adaptation and resilience across the continent.

Challenges Remain
Despite these encouraging strides, challenges persist. Africa needs between $290 billion and $440 billion between 2020 and 2030 to finance loss and damage needs, pointing to a significant gap between promises and on-the-ground reality. The establishment and progress of the Loss and Damage Fund’s 26-member board will be crucial, with an evaluation scheduled for 2027.

Conclusion
COP28 marks a pivotal milestone in the global battle against climate change, as Africa secures historic funding commitments that hold immense potential to reshape the continent’s climate resilience. While the funding and agreements signal a positive step forward, their swift and effective implementation is paramount. Accelerating impact on local communities in Africa not only addresses immediate needs but also sets the stage for showcasing progress in future COP events. As the world collectively confronts the challenges of climate change, continuous collaboration and sustained financial support for the African continent are imperative. This commitment is essential for ensuring a future that is both sustainable and equitable for all.

About the author
Atak Ngor

Shamba Network, in partnership with Mercy Corps Ventures, Fortune Credit and DIVA Technologies, has launched a pioneering pilot project to aid Kenyan pastoralists in the event of drought. This project aims to test the use of blockchain and smart contracts to deliver anticipatory cash transfers ahead of climate shocks to pastoralist communities in the Horn of Africa, which have long experienced recurring climate shocks, including droughts and floods — threatening the livelihoods and food security of millions. Responding quickly and effectively to these crises has always been a challenge. This pilot seeks to change that by introducing anticipatory cash transfers to vulnerable communities in two Kenyan counties: Laikipia and Kajiado.

At the heart of the pilot program lies a smart contract designed to ensure that donated funds are put to their best use. The smart contract holds donated funds in escrow and disburses them to enrolled pastoralists only if the pasture conditions are deemed distressful for pastoralists.

The way this works is the smart contract is fed data on pasture conditions in the pilot areas by an ecological data oracle. The oracle plugs into satellite data and provides an indicator called NDVI (Normalized Difference Vegetation Index). NDVI is a widely accepted metric used to measure the health and density of vegetation through remote sensing.

Why does this matter?
Traditional humanitarian aid delivery in the Horn of Africa faces numerous challenges, including recurring crises, security issues, bureaucratic obstacles, corruption, and logistical limitations, all of which hinder efficient aid distribution. This pilot program holds significant importance as it explores an innovative approach to humanitarian aid delivery. It not only promises to be faster and more cost-effective but also enhances transparency. This is achieved by leveraging the capabilities of satellite data and smart contracts to automate risk assessment and fund disbursements to pastoralists in need.

The role of ecological data oracle:
Shamba’s ecological data oracle plays a key role in assessing environmental conditions in the pilot counties of Kajiado and Laikipia. Shamba’s data oracle reports ecological state on-chain by tapping into satellite technology. In this pilot, Shamba’s oracle provides vital data on vegetation health through the computation of the Normalized Difference Vegetation Index (NDVI). Low NDVI values is a clear indicator of reduced vegetation density, signaling the onset of drought conditions. When the NDVI value falls below a certain threshold, it indicates that pastoralist communities are facing imminent challenges due to climate-induced stress.

Shamba’s ecological data oracle provides risk assessment and reporting to determine when pastoralist communities are affected by drought. It provides the smart contract with the data required to trigger anticipatory payouts to affected communities. This ensures timely financial support during challenging periods.

The funds, contributed by participants through the DIVA Donate platform are securely held within the smart contract on the Polygon blockchain. The use of blockchain technology and smart contracts brings transparency and automation to the donation process. The smart contract enables the automatic release of funds when predetermined environmental conditions, as indicated by the NDVI data, are met; eliminating the need for manual intervention both in risk assessment and payouts.

Participate now
To participate in the campaign, head over to DIVA Donate and deposit any amount of USDT to support pastoralists in Kenya in the event of drought.

Note: you will need a Metamask wallet, a small amount of MATIC to cover the transaction costs on Polygon (which are minimal), and some USDT.

Learn more about rewards here.

How does it work?
First, participants contribute funds in the form of USDT stablecoin via a user-friendly DIVA Donate. These funds are securely stored within the DIVA Protocol smart contract on the Polygon blockchain. Subsequently, these funds are released to the beneficiaries based on the average NDVI data for the Q4 2023 period, as reported by the Shamba Network data oracle. Fortune Credit handles the onboarding of pastoralists and facilitates the payout.

Learn more about this partnership from Mercy Corps Ventures here.

In December 2022, the first DIVA Donate pilot campaign was launched in a partnership between DIVA Protocol, Shamba Network, and Fortune Credit. The pilot came to an end in June 2023 and provided vital drought risk cover to approximately 150 herders in Kenya. See the results here for more details.

Conclusion
As climate shocks intensify in the Horn of Africa, the collaborative effort of the pilot partners is reshaping the humanitarian aid landscape for pastoralist communities in Kenya’s arid counties. This pilot, harnessing the power of blockchain technology, satellite data and fintech, promises a faster and more cost-effective response to ecological crises, extending a lifeline precisely when it is most needed.

About Shamba Network
Shamba Network is the developer of a data oracle that enables the collection and reporting of ecological data on-chain. Through the Shamba oracle, the Diva Donate platform gets updated on what is happening in the real world and this allows the smart contract to determine whether a risk has occurred or not.
Website | Twitter | LinkedIn

About Mercy Corps Ventures
Mercy Corps Ventures invests in and catalyzes venture-led solutions to increase the resilience of underserved individuals and communities. It funds back founders who are developing solutions across adaptive agriculture and food systems, frontier fintech, and climate smart systems.
Website | Twitter | LinkedIn

About Fortune Credit
Fortune Credit Limited is a microfinance institution in Kenya, providing credit, insurance and other non-financial services to 50,000+ customers in Kenya. Fortune Credit is responsible for onboarding pastoralists to the Diva Donate pilot.
Website | Twitter | LinkedIn

About DIVA Technologies
DIVA Technologies is the developer of DIVA Protocol, a web3 platform built on Polygon, that provides the smart contract underpinnings for the Diva Donate pilot. The Diva Donate pilot is launched through this protocol.
Website | Twitter | LinkedIn

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Providing vulnerable populations with social safety nets using conditional donations I Medium, Dec. 2022

Empowering Conditional Donations on the Blockchain: Insights from the DIVA Donate Pilot I Medium, July 2023

In June 2023, the DIVA Donate pilot campaign came to an end with no payouts being triggered through the platform. DIVA Donate operates as a blockchain-based platform that enables conditional donations using the DIVA Protocol. This pioneering initiative was a collaborative effort between DIVA Protocol, Fortune Connect, and Shamba Network, aiming to revolutionize the way donations are made and distributed.

DIVA Donate on Twitter: "+++ UPDATE +++The DIVA DONATE pilot campaign officially ended yesterday, and we wanted to inform you that no donation was triggered. The observed rain levels were sufficient, resulting in the actual value of the trigger metric (1 + Average NDVI) being approximately 1.34, ... https://t.co/5ZfHVy8AQt / Twitter"

UPDATE +++The DIVA DONATE pilot campaign officially ended yesterday, and we wanted to inform you that no donation was triggered. The observed rain levels were sufficient, resulting in the actual value of the trigger metric (1 + Average NDVI) being approximately 1.34, ... https://t.co/5ZfHVy8AQt

A key component of the DIVA Donate project was the utilization of Shamba’s ecological oracle within the blockchain layer. Shamba Network’s ecological data oracle reports ecological state on-chain for use by smart contracts such as web3 protocols. By leveraging Shamba’s oracle technology, the Diva Donate pilot provided vital drought risk cover to approximately 150 herders in Kenya. The smart contract securely held the allocated funds, and if a drought occurred, the funds would have been automatically released to assist the affected herders.

Celo Kenya 🇰🇪 on Twitter: "https://t.co/qjnPuP8jBC / Twitter"

https://t.co/qjnPuP8jBC

During a discussion on Celo Kenya’s Twitter Spaces, Kennedy Ng’ang’a, the Founder and CEO of Shamba Network, shed light on the operational mechanism of their ecological data oracle. Ng’ang’a explained that our oracle relied on satellite data to monitor vegetation levels in a given area. The oracle reported to Diva Protocol the amount of vegetation available at the end of the pilot, and if a specified threshold was crossed that would trigger the release of funds. However, in the case of the DIVA Donate pilot campaign, the predetermined threshold was not met, resulting in the funds not being disbursed.

Ng’ang’a emphasized the potential of such smart contracts powered by oracles, highlighting the versatility they offer in responding to various environmental conditions. He envisioned a future where smart contracts could be designed to address a range of ecological scenarios, such as wildfires, floods, and other natural disasters. By integrating oracle technology and bringing environmental data onto the blockchain, on-chain applications could be developed to deliver timely assistance to those affected by different ecological conditions. “So this is the real strength of an oracle, it allows all of this data to get on-chain and to be able to drive on-chain applications.” Ng’ang’a said.

The experience gained from the DIVA Donate pilot campaign provides valuable insights into the potential of blockchain, smart contracts, and oracles in facilitating conditional donations and driving on-chain applications to address critical societal needs. The lessons learned will inform future developments and advancements in the field, opening up new possibilities for leveraging technology for social impact and positive change.

END

Shamba Network and dClimate have signed a partnership to list a wide variety of ecological data from the Shamba oracle on the dClimate data marketplace.

Based in New York, dClimate is a chain-agnostic, decentralized climate information ecosystem that makes it easy for businesses and builders to find, access, and utilize essential information about our planet to better understand how weather and climate impacts our communities and build data-driven technology solutions for helping communities achieve climate resilience.

Based in Kenya, Shamba is a decentralized monitoring, reporting and verification (DMRV) network that allows the collection and reporting of ecological data. Leveraging satellite data, machine learning, geospatial modeling, crowdsourcing and validation experts, Shamba allows monitoring of the physical world and quantification of impact at scale. This data that Shamba provides can be used to drive a wide variety of web3 applications, and this new partnership lays the groundwork for that.

What is a data marketplace?
A data marketplace is a place where data can be listed and made available to a wide audience. It enables the discovery and access of data by a wide variety of users who need such data. By acting as a focus point, marketplaces connect buyers and sellers of data and therefore play a critical role in enabling the use of data. dClimate enables the discovery and use of climate data by people and projects working on climate action. In the web3 space, this is especially important given the number of ESG and climate action applications being developed that need climate data. The dClimate marketplace is an ideal place for Shamba to list its datasets to get them in front of more users.

What paradigm will Shamba be listing data for?
Shamba will provide data both in web3 and web2 formats. It will list the web3 ready ecological data available through its oracle, as well as the underlying geospatial data that is used by the oracle. This will allow web3 developers to easily consume climate data in a format usable by their smart contracts. It will also allow data scientists to access the raw geospatial data that they need to build and improve machine learning algorithms. By providing data in both web3 and web2 formats Shamba enriches the dClimate ecosystem with data for all users and participants.

What are examples of the dataset that will be listed?
Shamba will be listing data on several thematic areas. From the local weather viz precipitation, temperature, wind speed, humidity and others, to soil moisture, vegetation density and drought indices. Shamba will be providing data to monitor various ecological phenomena. Shamba also provides data on wildfires which allows monitoring of such large scale hazards sustainably. Other thematic areas include greenhouse gas quantities and evapotranspiration rates.

Speaking on this new partnership, Kennedy Ng’ang’a, CEO of Shamba, had this to say: “Data is the lifeblood of the information economy. From driving financial applications to enabling impact projects, the modern world is powered by data. We are excited to partner with dClimate to make satellite data available on their marketplace. We believe this partnership will enable the development of new climate action applications and inspire innovation in the ecosystem.”

“We are excited to partner with Shamba to bring its critically important climate data onto the dClimate marketplace,” said Osho Jha, co-founder and CEO of dClimate. “Building an immutable and open ledger of Earth’s climate record requires collaboration with leading data providers across the globe. This integration with Shamba provides data consumers in the dClimate ecosystem access to valuable datasets to build towards meaningful and verifiable climate action.”

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About dClimate
dClimate is a chain-agnostic, decentralized climate information ecosystem that makes it easy for businesses and builders.
Website, Twitter, LinkedIn

About Shamba
Shamba’s mission is to enable regeneration of the planet and empowerment of farming communities. Shamba does this by providing ecological data on-chain to drive a variety of web3 applications.
Website, Twitter, LinkedIn

Shamba and Thallo have signed a partnership to explore the supply of farm based carbon credits on the Thallo platform. Thallo is a climate tech company developing a blockchain-based marketplace for the voluntary carbon market. Shamba is a decentralized monitoring, reporting and verification (DMRV) network that provides the data to underpin carbon and other ecological credits created by smallholders globally. Shamba is mobilizing smallholder farmers across Africa and providing them with the tools they need to create carbon credits through regenerative projects. This partnership with Thallo is a key step in providing the infrastructure for farming communities to create ecological assets and sell them on web3 marketplaces such as the Thallo platform.

What is the voluntary carbon market (VCM)?
Voluntary carbon markets are markets where carbon credits are purchased, usually by organizations, for voluntary use rather than to comply with legally binding emissions reduction obligations. Voluntary carbon markets are growing, driven in part by demand from businesses and governments looking to ‘offset’ their emissions. (Climate Change Committee)

Why are marketplaces important?
Carbon credit marketplaces like Thallo provide a one-stop solution for carbon project developers to bring their credits to the market. Developers can focus on creating credits with the knowledge that they have ready buyers so long as their credits meet a set criteria. Marketplaces make it that much easier to find buyers of these credits, as well as enabling the sale and retiring of these credits. Blockchain-based marketplaces have the potential to introduce a high level of trust to the VCM because they allow the transfer of credits to be transparent and traceable, and even more importantly they allow the retirement of credits to be recorded immutably. This helps avoid issues such as double-counting which have previously plagued the VCM.

What underpins carbon credits?
Measurement, reporting and verification (MRV) is a key ingredient of the VCM industry. MRV provides the data that is required to prove the credibility of credits generated by regenerative projects. A carbon credit project requires going through an MRV process before the credits can be certified and become eligible to be sold in marketplaces. Shamba is building infrastructure to enable MRV to happen affordably at scale even for small scale projects unable to afford traditional MRV.

What tools support carbon credits?
Carbon projects need to meet a strict criteria in order to achieve the requirements of the chosen methodology, which is typically created and verified by carbon credit registries. These can be large global organizations, like Gold Standard, or more regionally-focused or project type specific organizations, like BioCarbon Registry. Software tools can help carbon project developers to more intuitively navigate the requirements in a methodology and create high-quality carbon credits. They can also enable project developers to identify and quantify co-benefits that accrue from carbon projects. Shamba is developing the tools that project developers such as farmers can use to create carbon credits.

What’s next?
Starting in 2023 Shamba will deploy tools to help farmers create carbon credits under a traditional MRV paradigm which includes approval through a carbon registry.

Kennedy, CEO of Shamba had the following to say: “We are excited to be partnering with Thallo to increase the channels that farmers can use to sell their carbon credits. This partnership will allow us to help farmers to deliver carbon credits to markets and sell them internationally to drive ecological and social impact.”

Ryan Gledhill, Co-Founder and CEO of Thallo said: “Our platform is designed to empower project developers and ultimately support the scale-up of high quality carbon credits in the market. We are proud to partner with innovators like Shamba, working on the ground to deliver emissions reductions in an inclusive way.”

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About Thallo
Thallo uses first-of-its-kind blockchain technology to revolutionize and democratize the carbon markets, making it easier for buyers and sellers of high-quality carbon credits to find each other. Its team of veteran blockchain entrepreneurs and climate tech professionals combine technological expertise with deep sustainability knowledge to build the carbon marketplace of the future.
Website, Twitter, LinkedIn

About Shamba
Shamba’s mission is to enable regeneration of the planet and empowerment of smallholder farming communities. Shamba does this by providing ecological data on-chain to drive a variety of web3 applications, including carbon credit projects.
Website, Twitter, LinkedIn

GPT, or Generative Pre-training Transformer, is a powerful language model developed by OpenAI that has the ability to generate human-like text. In the realm of regenerative finance, GPT can be used in a variety of ways to assist with financial modeling, analysis, and communication. ChatGPT has been fine-tuned to perform chat-based conversation. It is designed to generate natural language text that is coherent and resembles human conversation like this entire blog.

One way GPT can be used in regenerative finance is to help generate clear and concise descriptions of financial products or information that align with the principles of regenerative agriculture. This could include generating descriptions of the social and environmental impacts of specific information or generating marketing materials.

Another potential use case for GPT in regenerative finance is to assist with financial modeling and analysis. For example, GPT could be used to generate financial projections or scenarios based on different assumptions about the performance of regenerative finance. In the context of regenerative finance, ChatGPT could potentially be used to assist with tasks such as customer service inquiries, providing information about financial products or services, and generating personalized financial recommendations. It could be incorporated into a chatbot or messaging platform to provide users with a more natural and human-like experience when interacting with financial systems.

In this blog, we will explore some of the ways that GPT can be effectively utilized in the realm of regenerative finance, and discuss the potential benefits and limitations of using this technology in this context. It’s important to note that while GPT may be able to assist with these tasks, it is ultimately up to human experts to make informed decisions.

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Regenerative agriculture is a type of farming that aims to regenerate soil health, improve water retention, and promote biodiversity, among other benefits. It is based on the principles of using farming practices that are sustainable and nourish the environment, rather than degrading it.

One way GPT could be used to learn about regenerative agriculture is by inputting specific questions or prompts related to this topic and having the model generate text that provides information or insights about regenerative agriculture practices. For example, a farmer could input the prompt “What are some ways to improve soil health in a regenerative agriculture system?” and GPT could generate a list of specific practices or strategies that could be used to achieve this goal. However, it’s important to note that while GPT may be able to generate useful information about regenerative agriculture, it is ultimately up to the farmer to carefully evaluate the relevance and accuracy of this information and to make informed decisions about how to apply it in their farming practices.

There are several ways that ChatGPT could be effectively used in the field of regenerative finance:

1. Customer service: ChatGPT could be integrated into a chatbot or messaging platform to handle customer inquiries and provide information about financial products or services. It could also be used to troubleshoot issues and provide assistance with account management.
2. Financial planning and advice: ChatGPT could be used to generate personalized financial recommendations for individuals based on their specific financial goals and circumstances. It could provide users with information about various financial products or strategies and help them make informed decisions about their finances.
3. Educational resources: ChatGPT could be used to create educational content about financial concepts and strategies, making it easier for individuals to learn about and understand important financial topics.
4. Fraud detection: ChatGPT could be used to analyze chat logs and identify potentially fraudulent activity, helping to protect individuals and financial institutions from financial crimes.

Overall, ChatGPT has the potential to be a valuable tool in the field of regenerative finance by providing users with convenient, personalized, and accurate financial assistance. Also, ChatGPT could potentially be used to assist smallholder farmers in Africa in a variety of ways. For example:

1. Providing information about best practices for farming and crop management: ChatGPT could be integrated into a chatbot or messaging platform to provide smallholder farmers with access to information about the most effective ways to manage their farms and crops.
2. Offering financial advice: ChatGPT could be used to provide smallholder farmers with personalized financial recommendations based on their specific financial goals and circumstances. It could also provide information about financial products or services that may be relevant to their needs.
3. Connecting farmers with resources and support: ChatGPT could be used to help smallholder farmers connect with organizations or individuals that can provide them with the resources and support they need to succeed.
4. Providing real-time weather updates and alerts: ChatGPT could be used to provide smallholder farmers with real-time weather updates and alerts, helping them to make informed decisions about when to plant and harvest their crops.

Overall, ChatGPT has the potential to be a valuable resource for smallholder farmers in Africa by providing them with access to information and support that can help them succeed in their farming endeavors. It is important that sometimes, it is difficult for ChatGPT to give certain precise information such as determining the best crop to grow in a specific location, as the system requires information about the specific conditions and resources available. Factors such as the climate, soil type, and access to water, as well as the market demand for different crops, can all impact which crops are most suitable for a given location.

Question: What is the best crop I can grow in Warrap, South Sudan?

ChatGPT answer: In general, some crops that may be well-suited to the climate and conditions in Warrap, South Sudan, could include:

• Sorghum: Sorghum is a drought-tolerant crop that is commonly grown in Africa. It is resistant to pests and diseases and can be used for food, feed, and fuel.
• Maize: Maize is another drought-tolerant crop that is widely grown in Africa. It is a staple food in many parts of the continent and can also be used for feed and biofuel.
• Cassava: Cassava is a root crop that is well-suited to warm, humid climates. It is a staple food in many parts of Africa and is relatively easy to grow.
• Cowpeas: Cowpeas are a legume crop that is well-suited to hot, dry climates. They can be used for food and feed, and are a good source of protein.

It is always advisable to consult with local extension agents or agricultural experts to get specific recommendations for crops that are well-suited to the local climate and conditions in Warrap, South Sudan. However, ChatGPT is able to give a more general information that a farmer may be seeking such as the example below.

Question: Where can I buy crop seeds in Kenya?

There are a number of places where you can buy crop seeds in Kenya, including:

1. Agricultural supply stores: There are many agricultural supply stores in Kenya that sell a wide variety of crop seeds. These stores can be found in both urban and rural areas, and often have a wide selection of seeds from different suppliers.
2. Online seed retailers: There are also several online retailers that sell crop seeds in Kenya. These retailers often have a wide selection of seeds available, and can offer competitive prices.
3. Seed companies: Many seed companies have a presence in Kenya and sell their seeds through a network of distributors or directly to farmers. Some of these companies may have their own retail outlets, or you may be able to purchase seeds from them through an agricultural supply store.
4. Agricultural cooperatives: Agricultural cooperatives are organizations that are owned and controlled by farmers. Many cooperatives sell seeds to their members at discounted prices, and may also offer other types of agricultural supplies and services.
5. Local markets: You may also be able to find crop seeds at local markets in Kenya. These markets may offer a variety of seeds from different sources, and prices may vary depending on the seller and the type of seed.

It is always advisable to purchase seeds from reputable sources to ensure that you are getting high-quality seeds that are well-suited to the local climate and conditions.

In conclusion, GPT could be used to learn about regenerative agriculture is by inputting specific questions or prompts related to this topic and having the model generate text that provides information or insights about regenerative agriculture practices.

This blog was written by ChatGPT, I guess who is better to ask what GPT is and its benefits to farmers other than ChatGPT. Although ChatGPT is not at human responses, I noticed it was confused with the “finance” part in “regenerative finance” so I had to remove a few words. Overall, it was important to leave most things as they are. It will be interesting to see how this technology can be used to assist farmers in learning about regenerative practices and ReFi solutions.

If you want to use ChatFPT, make sure not to use any person information.

Author
ChatGPT Dec 15 Version. (Jan. 2023)

Edits by Atak Ngor