The world's most vulnerable communities, particularly smallholder farmers and informal businesses, are on the front lines of climate change. Erratic weather patterns, prolonged droughts, and unpredictable floods are no longer rare events but a new reality that threatens livelihoods and food security. Conventional micro-lending, while vital, often does not account for these specific climate risks, leaving clients with loans they cannot repay after a climate-related shock. Micro-lending for climate adaptation is a proactive and innovative approach that designs financial products to help clients invest in resilient practices, such as drought-resistant crops, efficient irrigation systems, or renewable energy. By integrating climate science with financial services, this model not only protects a microfinance institution's (MFI) loan portfolio but also empowers clients to build a more sustainable and secure future.

This course is designed to equip microfinance professionals with the knowledge and tools to develop and implement financial products that help clients adapt to climate variability. You will learn how to assess climate risks at the household and community level, structure loans that are flexible and risk-sharing, and build strategic partnerships with climate experts and technology providers. By mastering the principles of climate-resilient finance, you will be prepared to help your institution navigate the challenges of a changing climate, turning a risk into an opportunity for both social impact and financial growth. This program will provide a roadmap for a new generation of microfinance leaders dedicated to building a greener and more resilient world.

Duration: 5 days

Target Audience:

• Microfinance institution (MFI) managers and executives
• Financial inclusion and development practitioners
• Professionals in charge of product development
• Risk management and credit analysts
• Social entrepreneurs and startup founders
• Agribusiness professionals and consultants
• Government and policy advisors
• Climate finance specialists
• Researchers in climate science and development

Objectives:

• Master the core concepts of micro-lending for climate adaptation.
• Understand the specific climate risks faced by low-income clients.
• Learn how to integrate climate data into a lending decision.
• Grasp the complexities of a climate-resilient loan product.
• Explore strategies for a flexible and risk-sharing model.
• Understand the role of technology and data in climate-risk assessment.
• Learn how to build a partnership with a climate expert.
• Understand the legal and regulatory frameworks for climate finance.
• Analyze successful case studies from different regions.
• Develop a strategic roadmap for a climate-adaptive lending program.

Module 1: The Climate and Finance Nexus

• The link between climate change, poverty, and financial vulnerability
• The main climate risks for low-income households
• The role of finance in climate adaptation
• The business case for climate-resilient micro-lending
• The importance of a a holistic approach to a a resilient future

Module 2: Product Design for Climate Adaptation

• Designing loans that align with new production cycles
• The importance of flexible repayment terms and grace periods
• The role of a bundled product (e.g., credit with insurance)
• Loans for climate-resilient technologies and practices
• Designing a product that is both profitable and impactful

Module 3: Risk Assessment and Mitigation

• The main risks: drought, flood, pest, and price volatility
• Using climate data for risk assessment and monitoring
• The role of weather-indexed insurance and a loan guarantee
• Strategies for a portfolio diversification
• Building a risk management framework for a climate-sensitive portfolio

Module 4: Technology and Data Analytics

• The use of remote sensing and satellite data for monitoring
• The role of weather-based early warning systems
• Leveraging mobile apps for real-time information
• The importance of a robust data collection system
• Using machine learning to predict crop yields

Module 5: The Partnership Ecosystem

• The importance of a partnership with climate experts
• Collaborating with ag-tech companies and NGOs
• The role of a government and a policy support
• Building a network of a trust and a collaboration
• Leveraging a partnership for a non-financial services

Module 6: Client Education and Engagement

• The importance of a well-defined communication policy
• The role of a client education program
• The importance of a clear and simple language
• The role of a well-defined marketing and advertising policy
• The importance of a well-defined communication plan

Module 7: The Regulatory and Policy Environment

• Navigating the legal framework for a climate finance
• The role of a government subsidies and a tax incentive
• The importance of a supportive policy environment
• The role of a green bonds and other financial instruments
• Advocating for a policy that support a climate-adaptive finance

Module 8: The Role of the Board and Senior Management

• The responsibility of the board in a climate-adaptive program
• The importance of a client-centric culture from the top down
• The role of a senior management in implementing the program
• The importance of a well-defined policy
• The link between a governance and a climate-adaptive program

Module 9: Scaling and Sustainability

• The challenges and opportunities of a scaling a climate-adaptive program
• Measuring the return on investment (ROI)
• The long-term financial sustainability of the approach
• The future of a financial inclusion with a robust program
• New trends and innovations in the sector

Module 10: Case Studies and Best Practices

• Analyzing successful a programs from around the world
• Lessons learned from a failed and a successful initiative
• The importance of a well-defined monitoring and evaluation system
• The role of a best practice in a a program design
• The future of a climate-adaptive finance

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.