Agriculture-based small and medium enterprises (Agri-SMEs) in Sub-Saharan Africa and South-East Asia are facing a US$106 billion funding gap, according to a recent report published by ISF Advisors, a sector-specific strategy group. Elaborating further, ISF says around 220,000 Agri-SMEs across Southeast Asia and Sub-Saharan Africa currently need total funding of US$160 billion, out of which only US$54 billion is being met through formal channels. As countries in these regions contribute to 60% of greenhouse gas emissions, their Agri-SMEs must adopt more sustainable practices to reduce their footprint. Of the US$530 billion expenditure in global climate finance, a meager 1.7% is allocated to SMEs in the agriculture sector.
