The news:
- ThriveAgric, a Nigerian agritech startup, has announced a partnership with Acorn Rabobank to provide carbon credit to over 30,000 smallholder farmers.
- The initiative, which targets sustainable agroforestry practices and global carbon market development, is expected to generate $56 million in revenue for these Nigerian farmers and eliminate 1.3 million metric tonnes of carbon emissions.
- The project will cut across nine Nigerian states: Kaduna, Gombe, Adamawa, Taraba, Bauchi, Jigawa, Niger, Nassarawa, and Kano.
The project, when completed, will further reinforce the agritech company’s mission to promote sustainable agriculture practices while providing adequate assistance for farmers and impacting rural communities.
“The carbon market is such a big market that we believe African farmers shouldn’t left behind,” emphasised Ayo Arikwe, Chief Technology Officer at Thrive Agric.
As of October 2023, the carbon credit market was valued at $103 billion and is projected to see an average yearly growth rate of 14.8% through 2032. Despite this global market and Africa’s immense potential for carbon credits, the continent only accounts for 2% of its capacity.
While the specialised financial market where carbon credits are sold and bought provides farmers globally with an alternative and additional revenue stream, low-income countries, particularly those in Africa, have found it challenging to participate fairly.
Farmers in Africa who could have otherwise benefited from these credits lose out due to a lack of awareness to apply and secure access.
ThriveAgric’s ambition, however, is to change this reality. Samirah Bello, Head of Partnerships at ThriveAgric, noted that all the farmers they would be working with would get the opportunity to expand their revenue stream to include carbon credits.
“For example, a farmer with one hectare of land can make as much as $1,700 in revenue from carbon credits in a year. For farms with newly planted trees, carbon credit revenue typically increases after the third year as the trees mature, capturing more carbon and generating additional credits.” Bello added.
The partnership will combat climate change by improving soil health, boosting productivity, and increasing carbon capture. Farmers, on the other hand, are expected to enjoy enhanced crop productivity, reduced post-harvest losses, and an extra income source (carbon credits) alongside other climate-smart programmes.
ThriveAgric, which works with more than 800,000 smallholder farmers across Nigeria, Ghana, Kenya and Uganda, is also building a platform, Dorewa, a solution to help other climate-focused startups in Africa kickstart their own carbon journey.
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“The idea behind Dorewa is to help other farmers across Africa get started on offsetting carbon credits,” Arikwe said.
Acorn Rabobank is the climate-focused subsidiary of the Dutch bank Rabobank. They are tackling climate change in Ghana, Kenya, Zambia, Rwanda, and Tanzania.
