Financing adaptation to climate-driven agricultural risks in Zimbabwe

Purpose Climate-driven agricultural risks in Zimbabwe, particularly droughts, high dependence on rainfed production and low adaptive capacity, limit the agriculture sector from fully contributing to socio-economic development. The objective of the study was to assess the status of funding for climate change adaptation across all farming sectors. Design/methodology/approach The 2022 national budget was analyzed in terms of allocation for agricultural and climate change adaptation interventions. At the farm level, availability of funding was assessed for fully commercial (A2, large-scale and estates), semi-commercial (A1) and subsistence (communal and old resettlement) farmers in Mutasa District in eastern Zimbabwe using a mix of key informant interviews, focus group discussions and a household questionnaire. Findings According to the 2022 budget, the government contributed 92% of total agricultural funding and 72% of climate change adaptation financing. Bilateral and multilateral climate finance accounted for only 3% of total agricultural funding, underscoring the country's ranking of 156 out of 160 on the Global Climate Finance Vulnerability Index. Semi-commercial and subsistence-oriented farmers depended mainly on the government and donors for funding in the form of crop inputs. The commercial sector depended on state-owned and private banks. Over 80% of farmers viewed agricultural and climate funding, availed mostly as working capital and not capital expenditure, to be inadequate. Originality/value There is a need to develop a comprehensive investment framework that guides the design of sustainable financing mechanisms for effective adaptation.