Green Bond for Sustainable Rice in Africa

Impact Goal: Boost food security and farmer incomes through climate-smart, sustainable rice production Description: iGravity and Helvetas have joined forces to develop and introduce the world’s first Green Rice Bond, a pioneering financial market instrument designed to mobilize investment capital and provide essential financing to stakeholders in the rice production value chain across Sub-Saharan Africa. Rice is a critical daily source of energy for half of the world's population. While most rice production is concentrated in Asia, the cultivation of rice in Sub-Saharan Africa has expanded by 40% over the past decade. This growth is driven by factors such as rapid population increases, urbanization, migration from rural areas to cities, rising incomes, and shifting dietary preferences. As a result, demand for rice in Africa is projected to grow by 3 to 4% annually.

Despite this rising demand, local production has not kept pace due to persistently low productivity, resulting in costly rice imports from Asia and limited access to the financing needed to boost production capacity. The Green Bond for Sustainable Rice in Africa seeks to bridge this financing gap and advance the development of local rice value chains in Sub-Saharan Africa, while promoting sustainable agricultural practices to meet the continent’s growing needs. The bond aims to raise USD 50 million and will provide indirect financing through local micro- and SME finance institutions, benefiting key actors throughout the rice production chain.