Chapter 5 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE
SENEGAL
Water and Value Chain
Figure 12: Senegal ND-GAIN Index
The Water Valorization for Value Chain Development Pro- ject (PROVALE-CV) in Senegal covers three agro-ecological areas: Niayes, the Groundnut Basin and Casamance, and eight administrative regions: Kaolack, Fatick, Kaffrine, Diour- bel, Thiès, Ziguinchor, Sédhiou and Kolda. The project’s goal is to provide a concrete response to key development prob- lems by valorization 50 of water to develop climate-smart ag- riculture and promote value chains in promising sectors, par- ticularly rice and market gardening. It will also help to open up production areas, reduce production costs through the use of new technologies, build the capacity of stakeholders, create rural entrepreneurship opportunities for young peo- ple and protect the environment.
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Source: https://gain.nd.edu/our-work/country-index
Situation Analysis of Climate Impacts
Senegal’s sustainable social and economic development is threatened by climate risks, external shocks and rising global uncertainties. On the 2023 ND-GAIN Index, Sen- egal’s score is 41. Figure 12 presents a time-series plot il- lustrating Senegal’s progress on the ND-GAIN Index over time. 51 These challenges, coupled with increasing domestic political uncertainty and regional instability, have slowed the country’s growth from 6 percent during 2014-2019 to 3.8 percent over 2020-2023. This deceleration exacerbates structural vulnerabilities such as low productivity, limited human capital, high informality and youth emigration. Senegal’s coastal exposure and reliance on natural resources for economic activities, jobs and livelihoods make the country particularly vulnerable to climate change. With rising temperatures, erratic rainfall, weather-related hazards and sea-level rise Senegal is becoming warmer and drier at a much faster pace than other countries in the world.
FUNDING DETAILS:
• Total program cost: US$136 million • OPEC Fund contribution: US$20 million
• Type of financial instrument: Sovereign loan • Co-financiers: AfDB, IFAD, the Africa Growing Together Fund/People’s Bank of China (AGTF), the beneficiaries and the Government of Senegal • OPEC Fund climate finance as percentage: 20 percent adaptation and 40 percent mitigation finance of the total OPEC Fund investment amount.
TIMELINE:
• The OPEC Fund received an official funding request oin April 2019 from the Senegalese authorities for the co-financing of PROVALE-CV. • The OPEC Fund approved a loan in support of the program in June 2020.
50 Reuse of water by reintegrating it into productive processes 51 University of Notre Dame (2024). Notre Dame Global Adaptation Initiative. URL: https://gain.nd.edu/our-work/country-index
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