ZAMBIA’S PROPOSAL FOR MOBILISING FINANCE
FROM DOMESTIC FINANCIAL MARKET FOR CLIMATE
RESILIENT PROGRAMMES TO SUPPORT
VULNER...
Overview
 Since independence in 1964, Zambia is still
exporting unprocessed copper
 Rampant unemployment
 Serious imbal...
CONSEQUENCES OF RURAL
POVERTY
POVERTY RELATED
SITUATIONS
HOW DO WE TRANSFORM
PEOPLE TO THESE?
Livestock induced siltation
Shifting cultivation
POVERTY RELATED SITUATIONS HOW DO WE GET PEOPLE TO
CHANGE TOTHESE?
Biofuels/Essential
Oils Programmes
expected to
minimize
deforestation and
would engender
economic
empowerment
among the ru...
Economically empowered Rural
poor will conserve Wildlife
POVERTY RELATED SITUATION ALTERNATIVE ECONOMIC
ENGAGEMENTS
VISION AND TRANSFORMATION PROGRAMMES
• Set up a National Catalytic Fund.
• Building a Catalytic Private Sector Financing
M...
BIOFUELS AND ESSENTIAL OILS
PRODUCTION VALUE CHAIN
IMPORTANCE OF BIOFUELS AND ESSENTIAL OILS TO
ZAMBIA’S RURAL DEVELOPMENT
• It is an “All-Included” Economic Empowerment Ind...
GROUND-BREAKING FEEDSTOCK
PRODUCTION
AGRO-ECOLOGICAL MAP AND CROPS
SUITABILITY
FROM: Agriculture Sector Profile 2011
Sweet sorghum
4 – 4.3 months
All Zones
Cassava
10 - 12 months
Mainly Zone III
Molasses
Available
Moringa
24 - 36 months
Al...
PROVINCIAL COOPERATIVE UNIONS
FEEDSTOCK SUPPLY NETWORK
POPUs
PGPGPG PG
FF F F
GBNLPCU
DISTRICT COOPERATIVE UNIONS
Integrat...
PROPOSED FINANCING FRAMEWORK
FOR BIOFULES AND ESSENTIAL OILS
PROGRAMMES
PILLARS OF THE PROPOSED FINANCING STRATEGY
The Proposed Financial and Investment Framework is
anchored into five (5) inter...
Investors | Lenders
Money
Bonds,
Instruments,
etc.
CATALYTIC AND RISK MITIGATING FINANCING FRAMEWORK
Government
Funding
Gr...
FEATURES OF THE FUND
• Innovative domestic funds mobilisation framework
• Structured to pool and blend different sources o...
KEY FEATURES OF THE FUND, Cont/…
• Flexible and “continuously growing” pool of funds
• The Fund is capable of:
●
Lending
●...
PRODUCTS AND SERVICES
• Agricultural Value Chain Financing
• Credit Enhancements
• Credit Guarantee
• Loans
• Share Acquis...
RISK MITIGATING FEATURES OF THE FUND
• Government Programmes (PPP)
• Guaranteed Market
 Government Off-take Agreement
• P...
MANAGED PERFORMANCE AND RISKS INSTITUTIONAL
COLLABORATION
Specialized /Professional Services
1. Operational
2. Technical
3...
CONTACT DETAILS
Africa Carbon Credit Exchange
4th Floor, Godfrey House. Kabelenga
Road.
P.O. Box 390035
Lusaka. Zambia
lch...
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Zambia's proposal for mobilising finance from domestic financial market for climate resilient programmes to support vulnerable communities

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Presentation Fin4Ag S50 by Lloyd Chingambo

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  • Zambia's proposal for mobilising finance from domestic financial market for climate resilient programmes to support vulnerable communities

    1. 1. ZAMBIA’S PROPOSAL FOR MOBILISING FINANCE FROM DOMESTIC FINANCIAL MARKET FOR CLIMATE RESILIENT PROGRAMMES TO SUPPORT VULNERABLE COMMUNITIES By Lloyd Chingambo Revolutionalising Finance for Agri-Value Chains Nairobi, Kenya July 14-18, 2014
    2. 2. Overview  Since independence in 1964, Zambia is still exporting unprocessed copper  Rampant unemployment  Serious imbalance in wealth distribution  Rampant rural poverty with only urban pockets of development while the rest of the rest of Zambia has been left behind. Government is seeking to remedy this situation
    3. 3. CONSEQUENCES OF RURAL POVERTY
    4. 4. POVERTY RELATED SITUATIONS HOW DO WE TRANSFORM PEOPLE TO THESE?
    5. 5. Livestock induced siltation Shifting cultivation POVERTY RELATED SITUATIONS HOW DO WE GET PEOPLE TO CHANGE TOTHESE?
    6. 6. Biofuels/Essential Oils Programmes expected to minimize deforestation and would engender economic empowerment among the rural poor. POVERTY RELATED SITUATION ALTERNATIVE ECONOMIC ENGAGEMENTS
    7. 7. Economically empowered Rural poor will conserve Wildlife POVERTY RELATED SITUATION ALTERNATIVE ECONOMIC ENGAGEMENTS
    8. 8. VISION AND TRANSFORMATION PROGRAMMES • Set up a National Catalytic Fund. • Building a Catalytic Private Sector Financing Mechanism through and use it to:  Unlock the domestic financial market and private sector  Proactively “grow” the private sector to spur growth and development in the country  Financing as a vehicle for rural economic empowerment of citizens ● Essential Oils Value Chain Programme ● Biofuels Value Chain Programme.
    9. 9. BIOFUELS AND ESSENTIAL OILS PRODUCTION VALUE CHAIN
    10. 10. IMPORTANCE OF BIOFUELS AND ESSENTIAL OILS TO ZAMBIA’S RURAL DEVELOPMENT • It is an “All-Included” Economic Empowerment Industry capable of creating jobs and wealth for All in the long run • Improves Climate Resilience and Security, • Promote Rural Development, • Promote Agriculture Development and enhance food security, • Create jobs and alleviate poverty, • Economic Empowerment among citizens, • Enhance Environmental Conservation and mitigate climate change, • Foster technological development, etc.
    11. 11. GROUND-BREAKING FEEDSTOCK PRODUCTION
    12. 12. AGRO-ECOLOGICAL MAP AND CROPS SUITABILITY FROM: Agriculture Sector Profile 2011
    13. 13. Sweet sorghum 4 – 4.3 months All Zones Cassava 10 - 12 months Mainly Zone III Molasses Available Moringa 24 - 36 months All Zones Soybeans 4.5 - 5 months Mainly Zones IIa & III EXAMPLE 1 – BIOETHANOL FEEDSTOCKS EXAMPLE 2 - BIODIESEL FEEDSTOCKS 13 Jatropha 24 - 36 months All Zones
    14. 14. PROVINCIAL COOPERATIVE UNIONS FEEDSTOCK SUPPLY NETWORK POPUs PGPGPG PG FF F F GBNLPCU DISTRICT COOPERATIVE UNIONS IntegratedandCertifiedMarketStructure anchoredinto:PPCR,ZABS,NTBC,NISIRand HerbariumNDO CatalyzingCottageIndustries (DevelopmentofValueAddition Infrastructure)
    15. 15. PROPOSED FINANCING FRAMEWORK FOR BIOFULES AND ESSENTIAL OILS PROGRAMMES
    16. 16. PILLARS OF THE PROPOSED FINANCING STRATEGY The Proposed Financial and Investment Framework is anchored into five (5) interlinking Strategies, namely: • Based on an “Off-Balance Sheet” Funding Strategy” • Incorporates a robust Risk Mitigating Framework • Creation of a Liquid Fund as the vehicle through which projects are processed • Deployment of the Liquid Fund to leverage domestic financial sources • Adopted the Pooling and Blending Strategy.
    17. 17. Investors | Lenders Money Bonds, Instruments, etc. CATALYTIC AND RISK MITIGATING FINANCING FRAMEWORK Government Funding Grant Financing Sources Concessional, Commercial, etc. CATALYTIC Fund Programmes &Projects Treasury Management Specialized Service Providers
    18. 18. FEATURES OF THE FUND • Innovative domestic funds mobilisation framework • Structured to pool and blend different sources of funds • Permanent Liquid Fund capable of mobilizing finance from both “donors” and domestic financial sources, at any scale • Capable of facilitating or supporting investment opportunities with different risk profiles • Embodies venture capital characteristics • Capable of supporting: ● Projects ● Programmes ● Companies ● Local Authorities ● Central Government (Sovereign Fund). Africa Carbon Credit Exchange Telephone: +260-1-238473/2 www.africACCE.com
    19. 19. KEY FEATURES OF THE FUND, Cont/… • Flexible and “continuously growing” pool of funds • The Fund is capable of: ● Lending ● Borrowing ● Creating its own money through treasury management of the pooled funds ● Extending grants:- ● Productive Social programmes and projects ● Smallholder projects and programmes. • Risk mitigation vehicle capable of: ● Extending credit enhancement ● Extending credit guarantees. Africa Carbon Credit Exchange Telephone: +260-1-238473/2 www.africACCE.com
    20. 20. PRODUCTS AND SERVICES • Agricultural Value Chain Financing • Credit Enhancements • Credit Guarantee • Loans • Share Acquisition • Bridge Financing • Trade and Supply Chain Finance • Leasing of Equipment • Blended Finance • Structured Finance • Underwriting Business Support • Infrastructure Financing • Etc.
    21. 21. RISK MITIGATING FEATURES OF THE FUND • Government Programmes (PPP) • Guaranteed Market  Government Off-take Agreement • Product is Measurable • Specified Standards  Meets Specific Standards • Supported by a Liquid Fund • Inputs are specified and quantified • Supported by necessary specialized service providers • Etc.
    22. 22. MANAGED PERFORMANCE AND RISKS INSTITUTIONAL COLLABORATION Specialized /Professional Services 1. Operational 2. Technical 3. Financial Planning 4. Management 5. Strategy support 6. Risk management 7. Marketing 8.Out-grower Systems 9. Infrastructure 10. Governance 11. Standards 12.Asset Management 7. Etc.
    23. 23. CONTACT DETAILS Africa Carbon Credit Exchange 4th Floor, Godfrey House. Kabelenga Road. P.O. Box 390035 Lusaka. Zambia lchingambo@africacce.com

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