Unlocking climate finance for sustainable livestock: Reflections from the Second Climate Change Global Business Summit on Africa

The Second Climate Change Global Business Summit on Africa was held in Nairobi, Kenya, 19-20 March 2025. The summit focused on the challenges and opportunities in climate change in Africa and aimed to promote closer cooperation between the public and private sectors to address climate change in the continent.

‘Unlocking climate finance in Africa’ was a core topic and discussions explored ways of mobilizing resources to fund climate change initiatives in Africa. To understand the nuances of this issue, particularly within the livestock sector, we interviewed Lennart Hientz, global livestock value chain investment development specialist for the Sustainable Investments for Large Scale Rangeland Restoration (STELARR) project at the International Livestock Research Institute (ILRI), who represented the institute at this high-level event.

Interview with Lennart Hientz, global livestock value chain investment development specialist, ILRI.

Question: Following your attendance at the Second Climate Change Global Business Summit on Africa, what were your key observations regarding the overall focus and engagement?
Lennart Hientz: Thank you for the opportunity. My observation was that while climate finance was a central theme, mobilizing capital from the private sector remains a significant challenge. The summit provided a valuable platform to raise awareness and to exchange ideas on potential solutions.

Question: The summit aimed to promote closer public-private cooperation to address climate challenges. In your opinion, how effectively did the event achieve this goal?  
Hientz: While there were certainly interactions between public and private sector representatives, there is still room to deepen collaborations. The focus tended to remain on outlining challenges rather than forging concrete, joint initiatives to unlock finance.

Question: What were the most significant insights you gleaned concerning the challenges and opportunities in mobilizing climate finance for Africa?
Hientz: A primary takeaway was the persistent challenge of translating discussions into tangible financial flows. While the substantial funding deficit was consistently acknowledged, practical and economically viable strategies for bridging this gap need further development and emphasis, including the strategic use of nature-based solutions. It is clear that current funding levels are insufficient to meet climate goals, yet creating compelling investment cases for the private sector remains a hurdle.

Question: Considering ILRI’s expertise, how was the role of agriculture and livestock addressed within the broader context of energy and infrastructure-focused discussions?
Hientz: The significance of agriculture, encompassing both emissions and the potential of rangelands as critical carbon sinks, was acknowledged. However, the discussions centered on energy and infrastructure, despite agriculture being a vital sector in sub-Saharan Africa that employs around 42% of the workforce in the region.

Question: As a representative of ILRI, how did the institute’s research and expertise in livestock value chains contribute to the dialogues?
Hientz: My role involved actively engaging in discussions, disseminating information regarding ILRI’s work in sustainable livestock development, and exploring synergies with stakeholders who expressed interest in our areas of expertise.

Question: Could you elaborate on the alignment between ILRI’s projects, such as The Sustainable Investments for Large-Scale Rangeland Restoration and ILRI’s Index-Based Livestock Insurance (IBLI), and the needs identified for climate finance?
Hientz: Certainly. The STELARR project directly addresses climate mitigation by aiming to attract private sector investment in rangeland restoration, recognizing the significant carbon sequestration potential of these ecosystems and their importance in the fight against climate change. Discussions also highlighted the relevance of insurance services such as IBLI as a mechanism for de-risking investments within the livestock sector, an area in which they are looking to become more active within sub-Saharan Africa.

Question: Based on your participation, what specific opportunities do you see for ILRI to further contribute to building climate resilience within the agricultural sector in the region?
Hientz: Opportunities include enhancing the climate resilience of livestock production systems, developing robust and financially viable investment proposals for rangeland restoration, strategically leveraging IBLI to mitigate investment risks and fostering stronger engagement with private sector stakeholders to understand their specific requirements.

Question: What are the main barriers you observed in unlocking climate finance specifically for the livestock sector in Africa?
Hientz: Several barriers persist. There is a high perceived risk associated with investments in this sector due to the lack of data, coupled with uncertain returns and a general lack of familiarity among investors. Other significant challenges are structuring viable investment vehicles and addressing the often-small scale of individual projects, which can lead to high transaction costs.

Question: How can ILRI effectively bridge the gap between available climate finance and the needs of smallholder farmers and small and medium-sized enterprises?
Hientz: ILRI can contribute through capacity-building initiatives focused on climate-smart agricultural practices, facilitating the co-design of investment-ready projects with private sector partners, developing robust monitoring, reporting, and verification frameworks, and supporting policymakers in creating enabling regulatory environments. There is a clear need to demonstrate the profitability of climate finance for these actors.

Question: What strategic steps should ILRI prioritize to advocate for increased climate finance within the livestock sector?
Hientz: We need to prioritize compelling investment cases that articulate potential financial returns alongside environmental and social benefits. At the same time, we need to demonstrate the cost-effectiveness of ILRI’s nature-based solutions, disseminate research findings in a way that serves the interests of diverse readers, and foster strategic collaborations with financial institutions and other research organizations.

Question: Finally, based on your experience at the summit, what message would you like to convey to policymakers and investors regarding the critical role of climate finance in the livestock sector of sub-Saharan Africa?
Hientz: For policymakers, it is imperative to establish stable and predictable investment climates underpinned by clear regulatory frameworks and strategic incentives. Recognizing the substantial contribution of the agricultural sector to the region’s economies is paramount. We need to show investors the opportunities inherent in climate-smart livestock value chains and get past conceptual discussions to active engagement and investment. The time for decisive action is now, especially considering the limited climate finance currently directed towards sub-Saharan Africa, despite the urgent need.

Acknowledgment
The Global Environment Facility-funded STELARR project is implemented by the International Union for Conservation (IUCN) and executed by ILRI in partnership with the Alliance of Bioversity International and CIAT, the International Center for Agricultural Research in the Dry Areas (ICARDA) the Center for International and World Agroforestry Centre Forestry Research, and the Sustainable Fibre Alliance. Additional support is provided by the CGIAR Science Program on Multifunctional Landscapes. We thank all donors who contribute to the CGIAR Trust Fund.