Chapter 5 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE
BURUNDI
Agricultural Production Intensification and Vulnerability Reduction
Figure 7: Burundi ND-GAIN Index
The OPEC Fund signed a US$20 million public sector loan agreement with Burundi in 2021 to co-finance a project that will improve food security, expand access to marketplaces and social services and strengthen the resilience of agricul- tural production systems. The project’s overall objective is to contribute to improving the living conditions and resilience of rural populations in central Burundi through an integrated land management approach.
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Situation Analysis of Climate Impacts
Source: https://gain.nd.edu/our-work/country-index
Burundi contributes less than 0.02 percent to global GHG emissions, yet it faces profound vulnerabilities to the im- pacts of climate change. As a Least Developed Country and one of Africa’s most densely populated nations, Burundi fac- es high debt and fragility. Approximately three-quarters of its 11.6 million population live in extreme poverty. 86 percent of Burundi’s workforce is employed in agriculture, primarily as subsistence farmers. 31 Sectors that rely on natural resourc- es and are sensitive to climate conditions also contribute to the majority of the gross domestic product (GDP). Burundi is widely acknowledged as highly vulnerable to cli- mate change. On the 2021 ND-GAIN Index it scored 35, re- flecting its significant susceptibility, whereas its neighboring countries scored higher (e.g. Rwanda 45, Tanzania 40). 32 The country’s vulnerability primarily stems from human factors, including its predominantly rural, natural resources-depend- ent population, declining crop productivity, poor health con- ditions, inadequate infrastructure and low levels of social, governance and economic readiness alongside targeted climate adaptation efforts.
FUNDING DETAILS:
• Total program cost: US$82.4million • OPEC Fund contribution: US$20 million • Type of financial instrument: sovereign loan • Co-financiers: IFAD, WFP, the Green Climate Fund, the beneficiaries and the Government of Burundi • OPEC Fund climate finance as percentage: 29 percent adaptation finance.
TIMELINE:
• The OPEC Fund was approached by IFAD in late 2017 regarding a possible joint financing of the Agricultural Production Intensification & Vulnerability Reduction Project in Burundi (PIPARV-B). Subsequently, the OPEC Fund received an official funding request in January 2018 from the Government of Burundi. • The OPEC Fund approved the program in September 2020. • The first tranche of the OPEC Fund loan was disbursed in December 2022.
31 World Bank: Diagnosing Drivers of Climate and Environmental Fragility in Burundi’s Colline Landscapes: Towards a Multisectoral Investment Plan to Scale up Climate Resilience 32 University of Notre Dame (2024). Notre Dame Global Adaptation Initiative. URL: https://gain.nd.edu/our-work/country-index/
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