Coronavirus pandemic: financing deforestation-free supply chains in Africa

Communities in (sub-)tropical Africa dependent on forests for their livelihoods have been hard-hit financially by Covid-19. Investments in the value chains for speciality coffee and cocoa in western and eastern Africa can promote deforestation-free production while also supporting reforestation and economic growth. The Regeneration initiative supports the financing of sustainably produced coffee and cocoa in western and eastern Africa. The initiative is targeting distributors, who can purchase products from smallholders and agricultural cooperatives with the operating capital provided by IKI. The initiative brings together a network of distributors in many African countries that the two implementing organisations have set up in the course of various programmes conducted in recent years. The initiative’s model also has the potential to be expanded step by step to encompass other deforestation-free supply chains, countries and continents.

Project data

Countries: Ivory Coast, Ethiopia, Ghana, Kenya, Uganda
IKI funding: 10,000,000.00 €
Duration: 12/2020 till 11/2025
Status: open
Implementing organisation: The Palladium Group
Political Partner: Ministry of Agriculture, Animal Industry and Fisheries - Uganda

Ministry of Agriculture, Livestock and Fisheries - Kenya

Ministry of Agriculture and Natural Resources - Ethiopia

Ministry of Food and Agriculture - Ghana
Implementing Partner: SYSTEMIQ Ltd
Online: https://www.regeneration.io/rebuild-facility

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State of implementation/results

The Rebuild Facility is a finance facility of Regeneration that supports sustainable cocoa and coffee businesses in East and West Africa. They provide interest-free working capital and technical assistance to aggregators, off-takers, and buyers of specialty cocoa and coffee to protect at-risk value chains and to safeguard the incomes of forest-dependent communities.
The Rebuild Facility focuses on protecting at-risk value chains and safeguarding forest-dependent communities and stakeholders. Returnable grants and technical assistance offered through the Rebuild Facility ensure the continued purchase of sustainably produced commodities from communities and community-based enterprises. As the products are successfully sold to end-markets, the grant is returned and reinvested to bolster and enlarge sustainable and fair value chains.
The Rebuild Facility protects smallholder livelihoods and incomes by maintaining their access to international buyers and markets. Its interventions protect and conserve tropical forests and other high value forested areas by delivering improved incomes to deforestation free producers.
The Rebuild Facility also strengthens the private sector markets by supporting market liquidity, transactional integrity and innovative business cases for deforestation free production that delivers enhanced livelihoods and other benefits that have been threatened by COVID-19 market disruption.
The Rebuild Facility started implementation in December 2020 and aims to support over 65,000 smallholder farmers in Uganda, Ethiopia, Kenya, Cote D’Ivoire, and Ghana. To date, it has reached over 40,000 smallholder farmers.
The Rebuild Facility also aims to unlock (private and public) finance of over 25 million EUR and enable over 115,000 hectares of land under improved and sustainable land use management. To date, it has unlocked over €19M and enabled >78Ha under sustainable management.
Palladium International Limited and SYSTEMIQ Limited are the implementing partners for the Rebuild Facility. Further information can be accessed through www.regeneration.io.

Latest Update:
03/2025