Development of investment framework to enhance the coffee sector resilience in Tanzania under ACT Programme

Country: Tanzania

The objective of this assignment was to support UNIDO in developing a structured investment framework study for the coffee sector in Tanzania under the Programme to Increase Coffee Value and Resilience of the Coffee Sector in East Africa. The study aimed at:

– Identifying and designing bankable climate adaptation investment solutions for the coffee sector, ensuring they are cost-effective, economically viable, and scalable.
– Developing financial mechanisms and business models to support the deployment of climate adaptation investments through national financial intermediaries.
– Proposing adaptation indicators, risk mitigation strategies, and monitoring mechanisms to ensure sustainability, creditworthiness, and long-term impact.
– Providing policy recommendations and advisory support for alignment with donor requirements and national regulations.

Description of activities performed:

– Conduct desk research and data collection, including review of CGIAR country-specific studies, financial sector reports, and policy frameworks.
– Carry out stakeholder mapping and consultations with government institutions, financial intermediaries, coffee cooperatives, development partners, and private sector actors.
– Design investment solutions tailored to Tanzania’s main coffee-growing regions (North, West, and South), ranking them by cost-effectiveness, scalability, and impact.
– Assess the demand side (investment needs, borrower accessibility, and absorption capacity) and the supply side (financial intermediaries, risk assessment, and deployment mechanisms) of potential financial instruments.
– Develop business models and financing structures detailing capital flows, on-lending mechanisms, and institutional roles.
– Propose adaptation impact indicators (e.g., number and type of beneficiaries, gender and youth disaggregation, reduction in exposure to climate hazards).
– Evaluate the replicability and scalability of financial mechanisms across coffee-growing regions and other agricultural value chains.
– Prepare budget allocations and total project cost estimations, including distribution of funds across instruments and provisions for technical assistance.
– Provide continuous technical advisory support to refine investment solutions, align with donor templates, and ensure regulatory compliance.
– Deliver a comprehensive final study with policy recommendations, facilitating the deployment of climate adaptation finance in Tanzania’s coffee sector.

Duration: 06/2025-04/2026

Client

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