The 2019 Annual Meetings of the African Development Bank Group will be held from 11-14 June 2019, in Malabo, Republic of Equatorial Guinea. Find out more
Incidences of climate change (CC) in the Horn of Africa (HoA), as assessed in the AR-5 published by the United nations Intergovernmental Panel on Climate Change (IPCC, 2014) are: rising temperatures, rainfall variability, drought, desertification, deforestation and land degradation, floods and other extreme weather events (extreme precipitations, stronger El Niño, etc.) Additionally, pastoral livelihoods in the ASALs of the HoA have been negatively affected by political marginalization, social exclusion, and lack of good governance at all institutional levels, imbalanced power relations between the state and civil society, and gender inequality. These phenomena are the cradle for increasing vulnerability of rural pastoral and agro-pastoral communities in the region and, taking into account the weight of the pastoralist activities and populations, increasing their resilience to climate change represents a vital issue for the HoA countries' stability, economic recovery and future prospects.
As one of the most important multilateral institutions acting in the Africa, the AfDB has an extensive experience in supporting and financing community based initiatives and projects in the continent. Investing in areas like agriculture, natural resources management and improving livelihoods are crucial for reducing poverty and vulnerability to climate change. The Strengthening Climate Resilience in the Kafue Sub-Basin, in Zambia, or the Carla Climate Adaptation for Rural Livelihoods and Agriculture in Malawi are some examples of projects financed by the Bank and designed to respond to the climate change effects, reduce poverty and enhance food security in some of the most vulnerable communities in the continent. The success of these projects shows the Bank's competency and commitment with implementing climate change adaptation measures in the region.
The Multinational (Sudan and Somalia) rural livelihoods' adaptation to climate change in the Horn of Africa - Phase II (RLACC II) is another project in alignment with the Bank's priorities and strategies for the future, which includes bring growth that is not only environmentally sustainable, but also empowering. Therefore, the Bank will continue playing a lead role in supporting the governments of both countries in achieving its objectives and implementing important measures to fight climate change effects and reduce poverty in Sudan and Somalia.
Somalia and Sudan are both included in the second phase of DRSLP II. The implementation of these projects will first enable a better carbon sequestration. The improving of water resource mobilization, through the building of boreholes, haffirs and other water infrastructures, and the introduction of new climate resilient practices, such as drought resilient seeds, will benefit communities in having better crop productivity, and thus, boost their economic growth. This process will enable a reduction of conflicts, especially about resources availability. Moreover, the introduction of sustainable land management with activities of reseeding and re-plantation will also have an important impact to reduce natural resources scarcity and poverty, but also on reducing soil erosion and increasing soil fertility. Providing veterinary services and training for communities about new climate resilient practices will improve food security and benefit for the whole regions in reducing conflicts and migrations.
The financial internal rate of return (FIRR) of the Project is calculated at 21%, the net present value (VPV) is estimated at USD 1.71 millions. The economic internal rate of return (EIRR) to the project is estimated at 25% and the net present value (NPV) at 12% opportunity cost of capital is estimated at USD 2.19 millions.
The project will have both direct and indirect benefits. Improved livelihoods for the agro-pastoral communities will be the main direct benefit. The emphasis on a multi-level, integrated approach to pastoral development through support and funding for a range of initiatives will help pastoralist communities and households undertake livestock and no-livestock income generating activities, accompanied by awareness raising, information and capacity building.
A parallel dynamic of social inclusion and economic growth will help reintegrate the most vulnerable and marginalized population categories into the local economy and combat the social and economic marginalization in which many pastoral groups are trapped. For instance, the creation of new boreholes and water supply networks in villages will reduce periods of unemployment/inactivity due to lack of irrigation boosting economic growth at the village level and improving villagers' livelihoods. Farmers' income is expected to increase from better crop productivity as a result of sustainable irrigation schemes and the introduction of new adaptive practices and appropriate technological package into crop production.
Additional programme benefits include an increased value of livestock through the setting up of veterinarian services, thus further improving food security, and reducing vulnerability to external shocks such as animal disease outbreak. The efforts of the project to provide micro financing will benefit to pastoralists and agro-pastoralists to diversify their sources of livelihoods.
National economies and regional integration will also benefit from the program. Effective cooperation in the management of water resources and improved rangeland management would reduce conflicts and promote social stability and strengthen regional integration. The development of market infrastructures and the improvement of the delivery of animal health related services, mainly the prevention and control of TADs will contribute to an increase of intra- and extra-regional safe trade in livestock products.
The methodology used to estimate these project benefits is based on a costs benefits analysis. Indeed, assessing the costs and benefits of a program is of essential importance to meaningfully quantify its impacts. Following the GEF approach, a baseline model is required, in this case the DRSLP II and III project. The global environmental benefits and the incremental costs, and besides, the project impacts, are compared to the baseline project without the support of the GEF. This comes down to analysing the situation with and without the additional GEF funded project.
For each country, Somalia and Sudan, this comparison has been made, to assess the economic and financial performances of the country projects.
LOULSEGED Mekonnen Kifle - RDGE2