The National Agricultural Development Fund (NADF) has entered into a partnership with German climate fintech company YAPU Solutions GmbH to strengthen climate-risk management and agricultural financing for smallholder farmers in Nigeria.

The two organisations formalised the partnership through a Memorandum of Understanding (MoU) focused on promoting climate-resilient agricultural finance, climate-risk assessment and greater use of data in agricultural lending, according to a statement issued by NADF.

The agreement was signed by NADF Executive Secretary and Chief Executive Officer, Mohammed Ibrahim, and YAPU Solutions Chief Executive Officer and Founder, Christoph Jungfleisch.

Under the agreement, NADF and YAPU Solutions will examine financial mechanisms aimed at helping smallholder farmers address climate-related risks affecting agricultural production.

The partnership will cover several areas, including climate-risk analytics, data infrastructure, operational frameworks, capacity building and pilot projects.

NADF said the collaboration will further enhance its ability to assess and manage climate risks within its agricultural finance portfolio.

YAPU Solutions is expected to contribute technical expertise and digital tools to the partnership, while NADF will support relevant operational engagement and take part in mutually agreed pilot initiatives.

The agreement also provides for the development of new or improved financial products for smallholder farmers, with particular focus on the growing risks climate change poses to agricultural production.

As part of the planned pilot projects and capacity-building activities, the organisations will bring together climate-risk data, digital tools and agricultural financing.

The collaboration is expected to establish a framework for incorporating climate-risk assessment into agricultural lending while supporting the creation of financing mechanisms that respond to the changing risks confronting farmers.

Source: msmeafricaonline