Climate risk to opportunity in East Africa: Scaling food system investment for nature and social impact
Climate risk is often treated as a barrier to agricultural investment, but it is actively reshaping where and how investment can succeed. Information asymmetry remains a core constraint with limited climate, productivity, and market data continuing to inflate perceived risk and restrict capital flows.
- Climate Action
- climate risk research
- food systems
- Ethiopia
Climate risk to opportunity in East Africa: Scaling food system investment for nature and social impact
Climate risk is often treated as a barrier to agricultural investment, but it is actively reshaping where and how investment can succeed. Information asymmetry remains a core constraint with limited climate, productivity, and market data continuing to inflate perceived risk and restrict capital flows.
Seeking to provide investors with clarity, Tetra Tech and ImpactSF analyzed climate risk and agricultural value chains in Ethiopia and Rwanda, revealing two very different realities for investment in agricultural risk management (ARM) solutions.
In Rwanda, climate-resilient investments often already have strong commercial potential. The priority is unlocking scale and reducing early-stage risk. While in Ethiopia, investment potential exists but requires building foundational systems first, including infrastructure, climate data, aggregation, and finance mechanisms.