Equity to disburse Sh12.5 billion for climate-smart farming

Equity Bank Group is set to disburse more than 12.5 billion shillings to farmers and rural businesses in East Africa as part of a 25.9-billion-shilling climate finance fund aimed at helping them adapt to the effects of climate change. According to the Africa Rural Climate Adaptation Finance Mechanism, the 12-year initiative will operate in Kenya, Uganda, Tanzania and Rwanda, providing financing for climate-resilient investments across the agricultural sector. The programme, announced by the International Fund for Agricultural Development, IFAD, and Equity Group in Kigali, Rwanda, will combine about 23.3 billion shillings in lending capital with approximately 2.6 billion shillings for technical assistance. Equity Group will contribute half of the lending capital from its own balance sheet, matching concessional funding from development partners. The initiative aims to reach about 260,000 smallholder farmers and 500 rural businesses, with at least 80 percent of the beneficiaries expected to be women and youth, at a ratio of 50 to 30. The funds are aimed at ensuring farmers have access to financing and knowledge to invest in climate resilience.