Climate Change

Climate change represents a significant obstacle to sustained economic growth and poverty eradication. In sub-Saharan Africa, poor people are disproportionately exposed and vulnerable to climate change shocks such as floods, droughts and heat waves which destroy livelihoods and assets. At Genesis, our agriculture and infrastructure teams work together to help increase the resilience of individuals and communities to these climate shocks.

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Projects

Early flood forecasting system for Incomati Basin

Project name:
Lower Incomati Flood Risk Management

Service:
Project preparation

Sector:
Water
Infrastructure
Climate Change

Area of Expertise:
Climate resilience

Client:
Climate Resilience Infrastructure Development Facility (CRIDF), DFID

Date:
2013 – 2017

Country:
Mozambique


The Incomati River Basin comprises 46 000 km² spanning South Africa, Swaziland and Mozambique and is home to more than 500 000 people. 

The basin, particularly downstream in Mozambique, experiences frequent flooding. This results in considerable loss to the formal and informal economies. The impact of flooding is aggravated by a lack of resources to cope with disaster and a history of limited coordination in flood control and management.

As part of the Climate Resilient Infrastructure Development Facility (CRIDF), Genesis was engaged in the basin for three years to support holistic flood mitigation as the financial and economic adviser on the project. Specifically, our work in the final year was to evaluate various flood mitigation responses (FMRs) and recommend a way to proceed with the choice and financing of the infrastructure. Our work was integral in establishing the need for an early warning flood forecasting system (EWFFS) and its requirements for financial sustainability.

                                                                                                                                     © CRIDF

Genesis’s capping involvement on the project was a comprehensive economic analysis of the FMRs, which had emerged through a consultative process with stakeholders. These infrastructure interventions (dykes, bridges, etc.) involve the diversion of water away from key risk areas. As a result, some areas are better off, while others are worse off. An understanding of which areas are better and worse, as well as their associated economic values, is an important consideration in continuing with an intervention. 

Genesis carried out a cost-benefit analysis (CBA) to assess whether investing in infrastructure was justified from a social-welfare perspective and to understand the distribution of benefits to stakeholders, the output of which led to a discussion on potential financing for the chosen investments. Genesis designed, championed and carried out an innovative and rigorous approach to this work, which is unique to any CBA we have carried out before. 

As a first step, a thorough land-use map of the flood area was carried out. The land was categorised in formal and subsistence agriculture, residential areas and roads, among others. By comparing the flood-hazard rating, generated by the hydraulic model of the “do-nothing” scenario, with that under the FRM, a picture of the potential cost savings under various FMR strategies was established. Assigning an economic value to the potential cost savings for each land-type was then compared with the actual costs of the intervention to assess whether the FMR was an efficient use of funds. 

The EWFFS has gone live and is available online and in real-time as a resource for decision-makers. The key project stakeholders include local government, the impacted community, the water utility and key private sector companies who are located in the areas impacted by flooding. The project is a case study for successful public-private partnership and collaboration to reduce the negative impact of flooding. 

Genesis aided this value being unlocked through detailing the “value chain” (users and processes) of the system (from forecasting to mobilisation), understating its costs and demonstrating the expected tangible benefits that can be unlocked through providing decision-makers with an early warning system that can inform their disaster mitigation response. This galvanised stakeholder coordination and support for its operational costs

For more information on the project

TOP PHOTOGRAPH: The site on the lower Incomati that floods frequently and has been the focus of one of the project's flood mitigation strategies.

Cases show way for climate-smart farming in Zimbabwe

Project name:
Documenting cases of Climate Smart Agriculture in Zimbabwe

Sector:
Agriculture and Agribusiness
Climate Change

Client:
VUNA/Government of Zimbabwe

Date:
2017

Country:
Zimbabwe


Seven successful cases of climate-smart agriculture (CSA) in Zimbabwe, documented by Genesis, are to be included in a manual being written for the country’s eight agricultural colleges. Genesis was contracted by VUNA, a regional DFID-funded programme on CSA to document these cases. 

CSA is foremost among the approaches in the agricultural sector to tackle the threats from a changing climate and a number of Zimbabwean governmental and non-governmental entities have adopted it as their main approach to tackling climate change. This project was intended to improve the understanding of this concept by documenting practical examples of its application in Zimbabwe, particularly among smallholder farmers. 

Phiri Junior, a farmer in Zvishavane, describes the benefits of water harvesting

Phiri Junior, a farmer in Zvishavane, describes the benefits of water harvesting

The seven detailed case studies from six provinces were documented, showcasing CSA practices such as conservation agriculture, solar-powered drip irrigation, low-cost aquaculture, production and preservation of supplementary fodder for livestock, local crop variety testing, and integrated renewable energy (biogas, solar) in crop/livestock systems. 

Following a presentation of these studies to key officials in the ministries of Agriculture and of Environment, Water and Climate, a decision was taken to integrate the cases into a Climate Smart Agriculture Manual for use in Zimbabwe’s eight agricultural colleges. 

In these cases key technical elements of these interventions were described, including farmers’ sentiments of their suitability to smallholder systems as well as their impact on productivity, incomes and climate resilience. Each case study was also analysed for its ‘climate smartness’ in line with the three CSA pillars: sustainable increase in productivity and incomes; greater resilience and adaptive capacity; and contribution to reducing emission of greenhouse gases (mitigation). The ‘scalability’ and sustainability of each intervention was assessed to determine potential for wider application and impact on people’s livelihoods. 

The seven cases that were documented: 1. Solar-powered drip irrigation: Zinkondweni irrigation scheme 2. Rain-water harvesting: The story of Mr Zephaniah Phiri Maseko 3. Conservation agriculture: A widow’s success story 4. Transformational adaptation: From crops to fish farming 5. Fodder production and preservation for livestock feeding: Guyu fodder project 6. A systems approach to CSA: Integrating renewable energy into crop/livestock systems 7. Towards a Climate Smart Village: Hezekiah Village, Gokwe North District.

Top photo: Mr Makwala, a farmer in Guyu Communal areas, shows off some of his fodder crop

Case for private sector, climate-smart smallholder farming

Project name:
Business case for engaging the Private Sector in Climate Smart Solutions for smallholder farmers

Service:
Market systems development

Sector:
Agriculture and Agribusiness
Climate Change

Area of Expertise:
Making markets work for the poor (M4P) in agriculture

Client:
Technical Centre for Agricultural and Rural Cooperation (CTA)

Date:
2016

Country:
Malawi
Mozambique
South Africa
Zambia
Zimbabwe


Genesis was engaged by the Technical Centre for Agricultural and Rural Cooperation (CTA) to research a business case for engaging the private sector in designing and delivering climate-smart solutions.  

The research was to inform the design and implementation of the CTA’s new flagship project on climate change, Promoting Climate-Resilient Agrifood Solutions for Cereals and Livestock Farmers in Southern Africa. 

The project aims to scale up four proven climate-resilient agrifood solutions (CRS) to increase food security, nutrition and income for smallholder farm households under changing climate conditions. It identified successful agribusiness models for private-sector engagement in the four CRS. Implementation will focus on Botswana, Malawi, Namibia, South Africa, Zambia and Zimbabwe.

The findings presented compelling evidence of win-win outcomes from private-sector investments that unlocked access to technology (e.g. drought-tolerant seed varieties and livestock breeds), finance, markets, information, insurance and other risk-management tools that build resilience of smallholder farmers. 

By helping farmers increase productivity, stabilise yields, improve quality, reduce production costs and transfer risk (through insurance), such investments are helping businesses stabilise supply (or demand in the case of suppliers), increase trade volumes and capacity use, access better products, lower transaction costs and minimise contractual defaults while building trust and a better understanding of the smallholder context. Governments and aid agencies also benefit from reduced need for safety nets and disaster recovery costs. Such partnerships create new commercial opportunities for service providers.         

Following our report and presentation at the programme’s regional conference in May 2016, the CTA and its partners resolved that their interventions would be anchored in inclusive private private-sector partnerships with farmers on a sustainable basis for deliver climate-smart solutions. 

One of CTA’s implementing partners in this project, the International Livestock Research Institute (ILRI), is discussing long-term cooperation (beyond the current CTA-funded project) with Genesis to support the design and implementation of climate-smart solutions anchored in private-sector/farmer partnerships.

The implementation of CTA’s flagship project is expected to start some time this year. It is expected to incorporate significant elements from our research. This should result in more sustainable climate-smart solutions that unlock value for farmers, agribusinesses, governments, the development community and service providers. 

SADC water and infrastructure projects

Project name:
Climate Resilience Infrastructure Development Facility (CRIDF)

Service:
Project preparation
Project finance advisory service

Sector:
Climate Change
Infrastructure
Water

Area of Expertise:
Project preparation

Client:
A DFID-funded facility managed by Adam Smith International

Date:
2013 – 2017

Country:
Malawi
Mozambique
Namibia
Tanzania
Zambia
Zimbabwe


The Climate Resilient Infrastructure Development Facility (CRIDF) is a DFID-funded facility that prepares water and infrastructure projects across SADC. It focuses on projects that build climate resilience, are pro-poor and are located in one of the SADC region’s 13 transboundary water basins. Under the CRIDF, Genesis is involved in the design and delivery of water infrastructure that fosters sustainable development of the region’s water, food and energy security.

Our work focuses on:    

Financial and economic appraisal of projects in order to assess a project’s impact, inform decision-making and to ensure financial, operational and social sustainability.

Leveraging and mobilising finance to support CRIDF in high-level engagement with donors and potential financiers to identify potential sources of financing, as well as in preparing projects for presentation and conducting the actual engagements.  

Genesis supports the programme across multiple individual water-preparation projects. For example, together with the African Development Bank, we are currently engaged in a project to assess the commercial viability of a hydro-electric plant on the border of Malawi and Tanzania. The project aims to develop an effective financing strategy and assess the potential for attracting private sector investors through public-private partnerships.

The Genesis project economist is leading the development of the financial and economic models, assessing the likely returns and benefits from the project and working to structure it in a way that is attractive to the private sector, while retaining important socio-economic development goals of the respective governments.

TOP and ABOVE: Building climate resilience in the Eastern Province, Zambia, through the construction of a dam and small-scale irrigation scheme.

TOP and ABOVE: Building climate resilience in the Eastern Province, Zambia, through the construction of a dam and small-scale irrigation scheme.

Climate-Smart Agriculture Programme

Project name:
Climate-Smart Agriculture Programme

Service:
Market systems development

Sector:
Climate Change
Agriculture and Agribusiness

Client:
A DFID programme managed by Adam Smith International

Date:
2015 – ongoing

Country:
Malawi
Mozambique
Tanzania
Zambia
Zimbabwe


The Climate-Smart Agriculture Programme (CSAP), funded by the UK’s Department for International Development (DFID), works to facilitate transformative change to the systems in which smallholder farmers operate in order to improve their livelihoods within the context of climate variability and change.

CSAP works across East and Southern Africa – initially in Malawi, Mozambique, Tanzania, Zambia and Zimbabwe – to increase the climate resilience of smallholder farmers by using targeted evidence, developing approaches for the uptake of sustainable and locally suited agricultural practices, and improving the wider enabling environment.

Climate-smart agriculture training

Climate-smart agriculture training

Genesis provides support for the programme’s agricultural development component. This seeks to pilot and, where appropriate, scale up ways of delivering information and services related to climate-smart agricultural practices that are tailored to the specific circumstances in which smallholder farmers operate.

Applying mulching and composting learnings

Applying mulching and composting learnings

In support of this component, the Genesis-appointed Zimbabwe country representative oversaw a rapid market systems analysis of key Zimbabwean agricultural value chains, including maize, sorghum, cotton, wheat, groundnuts and barley. 

The key objective of the analysis was to identify and present potential private-sector-driven projects that promote climate-smart agricultural practices among smallholder farmers in Zimbabwe to the CSAP regional programme team in order to assess funding requirements.

Building a climate-compatible development business case

Project name:
Building the business case for investment in climate-compatible development (CCD)

Service:
Project preparation
Monitoring and evaluation

Sector:
Climate Change
Water

Client:
Climate and Development Knowledge Network

Date:
2015

Country:
Rwanda


The Climate Development Knowledge Network (CDKN) in Rwanda wanted to develop a business case for climate-compatible development in Rwanda.

The Genesis team visited project sites and reviewed the documentation of multiple climate-compatible development projects in the country to select those best suited for impact evaluations and building the business case. 

The team then developed the impact evaluation and cost-benefit analysis approaches for a selected number of these projects.

Plan expands water supply to 25 000 Malawians

Project name:
Feasibility study on Illovo Nchalo Water Supply and Sanitation Project

Service:
Project preparation

Sector:
Water
Infrastructure
Climate Change

Client:
Climate Resilience Infrastructure Development Facility (CRIDF), DFID

Date:
2015 – ongoing

Country:
Malawi


Illovo Sugar Malawi wanted to improve the water supply for Nchalo town and the communities surrounding its sugar facility, which is an area characterised as very poor and lacking in clean water and sanitation.

Nchalo is in the Chikwawa district in the southern region of Malawi within which the Southern Region Water Board (SRWB) has jurisdiction over water supply infrastructure development and operations. A feasibility study was commissioned in response to the socio-economic challenges experienced in Chikwawa-Nchalo area.

With technical support from the Climate Resilient infrastructure Development Facility (CRIDF) in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), a PPP between Illovo and the SRWB was established in order to address the problem of access to safe water and improved sanitation in the area. Five options for the improvement of the water supply system and sanitation facilities in the area were considered.

The Genesis team did a cost-benefit analysis that determined a financial analysis of what would be the net return to the developer, and an economic analysis of what would be a net return to surrounding communities. Genesis’s analysis first resulted in the decision to proceed with the project. Secondly, and going beyond standard analysis and reverting to the engineers to help redesign the project to expand the water network to poorer communities not part of the original design, the Genesis team increased the economic impact of the project and its value for money.

The project is now expected to benefit an additional 12 000 people in the original target area. With the expansion to outlying villages, it is expected that 25 000 additional individuals in poorer, rural villages will also benefit from the project. Importantly, this will provide water for a growing population that would otherwise not have access to clean water. Formal access to water will have multiple benefits, primarily through improved sanitation and health and time savings, with the long-term benefits expected to be even larger.

Plan for safe water in 12 Zambian border towns

Project name:
12 Border Towns Project

Service:
Project preparation

Sector:
Water
Climate Change
Infrastructure
Public and Social

Client:
A DFID-funded facility managed by Adam Smith International

Date:
2014 - ongoing

Country:
Malawi
Zambia


Inadequate levels of water access and sanitation facilities can lead to the transmission of water-borne diseases across borders. This, in turn, stifles trade and other commercial and social activities within a sub-region and, at in extreme cases, can trigger cross-border conflict. 

The 12 Towns Project is an initiative aimed at providing a sustainable and equitable supply of safe water and appropriate sanitation to 12 border towns in Zambia, a country strategically and centrally located in the SADC region. Genesis was retained as the project economists for this suite of projects and carried out financial and economic appraisals for Kazungula, Chanida, Mwami, Chirundu and Siavonga border towns. Genesis provided recommendations of the appropriate allocation of the client's resources for the implementation for these projects.

By carrying out our project appraisal process, both the financial and economic justification of the separate projects was investigated. The particular focus of this project appraisal was in the project’s ability to provide climate-resilient infrastructure for the most vulnerable members of the border towns – with a particular focus on women and children. It also emphasised the project's ability to prevent transboundary conflict through better provisioning of infrastructure services. Input from our team resulted in the redesign of some of the projects to optimise their value for money and social impact in these strategic transboundary towns.

For more project information

TOP PHOTOGRAPH: Small traders at the Chirundu One-Stop Border Post. ABOVE: Trucks line up at the Chirundu One-Stop Border Post between Zambia and Zimbabwe

Securing water for Botswana

Project name:
Reconnaissance Study for the Chobe-Zambezi Water Transfer Scheme

Service:
Project preparation

Sector:
Infrastructure
Climate Change
Public and Social
Water

Client:
Botswanan Ministry of Minerals, Energy and Water Resources

Date:
2016 - ongoing

Country:
Botswana


The Chobe-Zambezi water transfer project assesses the viability and costs of constructing a scheme that will transfer additional water from the Chobe and Zambezi rivers on the northern border of Botswana to the large demand centres in south-eastern Botswana.

It is estimated that by 2025, water supply in Botswana will be inadequate to meet demand. This shortfall will be further exacerbated by the impact of climate change on drought cycles in Botswana.

Genesis is the lead for the financial work stream for the project. The scope of work includes a reconnaissance of work that has already been undertaken in pre-feasibility stage, financial modelling for the detailed costing of the project, transaction and project structuring as well as the development of a procurement strategy.

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Projects

Project

Early flood forecasting system for Incomati Basin

Genesis was engaged as the financial and economic adviser on a three-year project to support a holistic flood risk mitigation system in the Incomati Basin. Our work was integral in establishing the need for an early warning flood forecasting system (EWFFS) and its requirements for financial sustainability.

View Project
Project

Cases show way for climate-smart farming in Zimbabwe

Seven successful cases of climate-smart agriculture (CSA) in Zimbabwe, documented by Genesis, are to be included in a manual being written for the country’s eight agricultural colleges. Genesis was contracted by VUNA, a regional DFID-funded programme on CSA to document these cases. 

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Leading the team

Manyewu Mutamba

Senior Specialist (Climate Change)

Manyewu Mutamba
Senior Specialist (Climate Change)
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Kim Adonis

Manager

Kim Adonis
Manager
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