LONDON, CMC – The London-based Commonwealth Secretariat is working with the Antigua and Barbuda government to help build climate resilience in small and medium-sized businesses (SMEs) in the agriculture sector, focusing on enhancing their access to funding to support their growth.
It said the project aims to improve the livelihoods of local farmers and assist the country in delivering on its broader national climate commitments.
“Blended microfinance uses development funding to provide loans and grants, usually with an element of support – such as coaching and training- to help ensure businesses grow. The aim is to provide more accessible funding that can help to address social challenges and economic inequities.”
The Secretariat said that in collaboration with the administration in St. John’s, it recently hosted a stakeholder validation workshop to present the findings of a study on the feasibility of setting up a gender-responsive blended financing window under the Sustainable Island Resource Framework (SIRF) Fund for small, medium enterprises (SMEs).
The Commonwealth Secretariat’s Climate Section, in partnership with its Gender Section and Debt Management Unit, oversees the assignment with technical input from Future Earth Ltd, the consultancy firm contracted to provide support. It includes a gap analysis of barriers and opportunities facing small to medium-sized businesses when accessing finance and stakeholder consultations.
Climate change adviser at the Commonwealth Secretariat, Uzoamaka Nwamarah, said adequate climate finance is, by nature, inclusive, considering the needs and requirements of women, men, and young people.
“We are excited to deliver the assignment to build the country’s climate resilience and improve farmers’ livelihoods.”
Discussions at the workshop included whether the specific needs of farmers, including women-owned and women-led businesses, had been adequately considered.
Possible strategies, new partnerships, and action plans for successfully implementing the financing window were also explored. During the event, the participants also discussed how the Commonwealth Secretariat could further support operationalizing the financing window.
The workshop also explored whether in-kind financing, such as providing necessary equipment, would be helpful. Another innovative approach was including in-kind contributions, for example – produce, as a repayment option.
Director of the Department of Environment of Antigua and Barbuda and a member of the SIRF Fund, Ambassador Diann Black Layne, said, “We intend to have a fund that is fit-for-purpose and flexible enough to meet the needs and requirements of our beneficiaries, including small and medium enterprises.
“We appreciate the collaborative work of the Commonwealth Secretariat, the NDC Partnership, and Future Earth Ltd in walking with us on this journey.”
The Secretariat said that as a country member of the NDC Partnership, Antigua and Barbuda requested support to determine whether a blended financing initiative was feasible under the country’s SIRF Fund.
“The Commonwealth Secretariat, a member and implementing partner of the NDC Partnership, responded to this request with delivery under the Commonwealth NDC Programme. The NDC Partnership brings together countries and international institutions committed to fast-tracking climate and development action to the Paris Agreement and the Sustainable Development Goals (SDGs),” the Secretariat added.
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