Consultancy to advance financing mechanisms for Climate Smart Agriculture (CSA) and Nature-based Solution (NbS) investments In Tanzania

The consultancy supported the SUSTAIN programme in identifying, developing and scaling sustainable and inclusive value chain investments across the Kilombero, Sumbawanga and Ihemi landscapes in Tanzania. The work focused on analysing existing financing mechanisms and identifying opportunities to strengthen access to finance for agricultural value chains, climate-smart agriculture (CSA), Nature-based Solutions (NbS), biodiversity conservation and freshwater ecosystem restoration.

The project included a review of existing literature, financial instruments and market conditions related to agricultural production and value chains, complemented by field research, stakeholder interviews and focus group discussions. This work provided an assessment of current financing barriers and opportunities for businesses, smallholder farmers and local communities within the target landscapes.

In addition, the consultancy developed business cases for selected value chains and assessed their financial viability, while exploring options for sustainable financing mechanisms, including grants, credit and loan facilities, and carbon market opportunities. The project concluded with stakeholder consultations and recommendations to support the design of financing mechanisms that promote resilient economies, improved land health, social inclusion and sustainable landscape management in Tanzania.