The National Agricultural Development Fund (NADF) has partnered with German climate fintech company, YAPU Solutions GmbH, to strengthen its capacity to identify, assess and manage climate-related risks within its agricultural finance portfolio.
The partnership was formalised through a Memorandum of Understanding (MoU) aimed at improving the integration of climate risk considerations into agricultural lending and developing financing approaches that can better address the challenges facing smallholder farmers.
According to a statement issued by NADF, the agreement provides a framework for collaboration in climate risk assessment, adaptation and resilience finance, data management and other areas relevant to strengthening agricultural financing.
The agreement was signed by the NADF Executive Secretary and Chief Executive Officer, Mohammed Ibrahim, and the Chief Executive Officer and Founder of YAPU Solutions, Christoph Jungfleisch.
Under the partnership, the two organisations will work to improve the use of climate and agricultural data in decision-making across NADF’s financing operations.
The collaboration is also expected to equip the Fund with digital tools and technical expertise to assess climate-related risks associated with its agricultural finance portfolio.
The partnership will cover climate risk analytics, data infrastructure, operational frameworks, capacity development and pilot initiatives. YAPU Solutions will provide technical expertise and digital tools, while NADF will support implementation through relevant operational engagements and agreed pilot projects.
According to the statement, the collaboration will create opportunities to design or improve financial products for smallholder farmers, with particular focus on the increasing risks posed by climate change to agricultural production.
It added that both organisations would explore financing mechanisms to help farmers strengthen their capacity to adapt to climate-related shocks while improving the resilience of agricultural investments.
NADF said the partnership would combine climate risk information, digital solutions and agricultural finance to strengthen institutional risk management and support more informed lending decisions.
Through the planned pilot projects and capacity-building activities, the Fund is expected to deepen its understanding of climate risks affecting agricultural borrowers and strengthen the systems used to manage those risks across its financing portfolio.
