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SUSTAINABILITY & CLIMATE CHANGE

How to Finance a $1 Trillion Climate Crisis

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The United Nations describes the climate crisis as a $1 trillion challenge. We must shift toward a more sustainable future, and to do that we need the financial solutions that will support that transition. It is a need that is not being met – in part, because addressing the crisis has not become the priority it needs to be.

But the climate crisis is not the only challenge ahead. The Covid-19 pandemic has exposed wider sustainability issues that demand urgent attention, leaving governments and companies scrambling to find solutions for everything from optimising water usage and reducing carbon emissions to supply chain management and worker rights.

To tackle such a momentous challenge, we first have to realise that we need to do more, and the Covid-19 pandemic has been a catalyst for that. “The good aspect of the pandemic has been the moment of reflection,” says Dr Roland Mees, director of Sustainable Finance at ING. “We have been forced to reflect on our situation.”

Next, we need to make a coordinated effort to find tangible solutions. Over the course of the pandemic, for example, the public and private sectors worked together to produce and roll out vaccines in record times. This showed that when a problem is prioritised, it can be addressed at speed.

When it comes to the wider climate and sustainability issues, it is this kind of coordinated effort, along with tangible solutions such as finance going to companies and projects that can demonstrate a positive impact on the environment and society, that will accelerate the transition to a sustainable future. “There is really an immense drive now towards sustainability” Leonie Schreve, global head of Sustainable Finance at ING

Sustainable business is better busines

At a business level, there is a clear imperative to urgently pursue sustainability targets. Research published by ING in April, based on a survey of 100 institutional investors and 450 companies, found that 72% of investors are setting themselves increasingly ambitious targets on environmental, social and governance outcomes in their portfolios. They want to show that they are responsive to their stakeholders’ concerns.

For investors, investment success in sustainability means having access to a more transparent set of tools for assessing whether the sustainability ambitions of companies they seek to lend to are realistic. For those companies, success means being able to access sustainable finance solutions that are relevant to their goals, while being transparent about their performance as they pursue those goals.

Leonie Schreve, global head of Sustainable Finance at ING, says that one of the principal drivers for borrowers looking to access funds from the sustainable finance market is the growing belief that “sustainable business is better business”. Sustainability is increasingly proving to offer a competitive advantage: analysis by the Boston Consulting Group, for instance, finds that sustainable business model innovation helps companies to create “environmental and societal surpluses” that drive “business advantage and value creation”.

There is intense demand from stakeholders too for companies to address environmental, social and governance (ESG) issues. Last year, for instance, Legal and General Investment Management issued a warning to companies to do more to meet climate change targets or face consequences. For these companies, adopting a sustainable business model now can help to future-proof themselves.

In part, this is why despite the disruptions brought on by the Covid-19 pandemic in 2020, a 13% rise in green bond issuance to $305.3 billion from the previous year was accompanied by a surge in the sustainable debt market more broadly. Issuance climbed to $732.1 billion for the year, up 29% from 2019. Global sustainable debt issuance is on track to surpass $1 trillion this year, allowing it to make up a greater share of the overall debt market.

“We’ve already seen an uptake of sustainable finance in the past couple of years, but I think last year started a rethink about ‘How should we do things differently?’,” says Schreve. “There is really an immense drive now towards sustainability.”

The market: A look at sustainable finance solutions

What both lenders and corporates need is a clear blueprint to work from. Among the solutions that have gained traction in recent years are sustainability improvement loans, also known as sustainability-linked loans.

Mees, who was the architect and initiator of the loan, which first launched in 2017, says that with these arrangements businesses are offered a meaningful incentive to meet their targets – this typically works as a “nudge” for them. These loans offer businesses lower interest rates if they meet ambitious targets. If they fail to meet those targets, the interest rates will go up.

There is an awareness that these variable-rate loans can be used for “greenwashing” by companies that want to appear to be doing the right thing – unless the lender sets clear criteria. One way for lenders to avoid this is to assess the company’s sustainability rating based on a score given by an external agency.

These agencies typically assess businesses on their impact on a range of areas, such as biodiversity, energy efficiency, water management and social supplier standards. Investors also have other ways to assess companies, such as the work of the Sustainability Accounting Standards Board. This applies industry-specific measures of success to individual companies, while accounting for both financial and non-financial data.

With the widening sustainability issues facing companies, other specific financial instruments have seen a boom in popularity. In 2020, so-called social bonds proved to be a highlight in the sustainable debt market, because companies used them to tackle the pandemic’s human problems: $147.7 billion of social bonds were issued in the 12-month period – a staggering 720% increase on the previous year. In the first half of 2020, for example, regular issuers in the green bond market such as the Korean Development Bank and the African Development Bank focused their attention on social bond financing to mitigate the Covid-19 pandemic.

“We see a lot of interest in solutions where we can really accelerate specific social investments,” says Schreve. “During the first months of the pandemic we also issued the first social Covid-19 bond to support investments in healthcare, social housing and employment.” Here, banks can play a proactive role in developing new solutions to support sustainable transformation. Financing the transition will be accelerated when lenders actively develop financial solutions that support clients with sector specific needs.

Profit and purpose

The explosive growth in the sustainable finance market has had clear benefits. ING’s April research found that 73% of companies which say they have issued sustainable finance instruments have improved their ability to implement robust metrics for performance. Accountability is now less an abstract ideal and more a measurable part of strategy. “Traditionally, companies have mostly thought about how to make a profit, but this forces a different way of thinking.”

But to maintain momentum, corporates will need to realise that this accountability is not just a box-ticking exercise but something that can support them financially: profit can come from purpose. For Marieke Blom, Chief Economist at ING Netherlands, in the next five to 10 years companies have to “really understand their relationship with society and the planet”.

“It will force everyone making strategic decisions within a company to ask ‘How exactly do I relate to something?’,” she says. “Traditionally, companies have mostly thought about how to make a profit, but this forces a different way of thinking.”

The widening of the sustainable finance market will support executives in achieving their purpose while making a profit. Two-thirds of companies surveyed by ING say that the greater variety of products now available alongside green bonds has made the sustainable finance market more relevant to them and their goals.

On the ground: How sustainable finance is put to use

According to Schreve, sustainable finance is something you now “see everywhere”, but there are some sectors where an urgency for change is driving a growing number of requests from executives keen to see what is on offer.

One company that has been able to tap into sustainability-linked loans to support its sustainability goals is Aligned Energy, a US data-centre company.

As the pandemic accelerates trends such as remote working and cloud computing, data centres have become increasingly important parts of global infrastructure, which puts their electricity usage and renewability under the spotlight. The energy consumption of data centres is significant: some of the world’s largest use the same amount as 80,000 homes.

It is why Aligned Energy has taken a proactive step to secure a $1 billion loan made up of a $250 million revolving credit facility, a financial tool that allows the company to repay the loan in a flexible manner, as well as a $650 million term loan and a $100 million delayed-draw term loan. To ensure accountability, the loan to Aligned Energy is structured with sustainability KPIs based on principles set by the Global ESG Benchmark for Real Assets. This is supporting the company’s mission to match 100% of its annual energy consumption to zero-carbon renewable energy by 2024.

According to Anubhav Raj, Aligned Energy’s Chief Financial Officer, the loan will also help it to set a “best-in-class example for the data-centre industry with respect to environmentally and socially sustainable growth“.

Sustainable finance is also being used in the implementation of the circular economy – a system based on the principles of “designing out waste and pollution, keeping products and materials in use, and regenerating natural systems” by decoupling economic activity from the consumption of finite resources, all while redefining growth to focus on positive society-wide benefits.

“The circular economy is a means to an end,” says Blom. “The end of the circular economy is to limit the harm, for example, to biodiversity or the climate or to reduce pollution. From a planet perspective it’s necessary to begin working in a different way.”

One company that has recognised this need is multinational drinks and brewing company AB InBev, which has signed a $10.1 billion sustainability-linked revolving credit facility – the largest deal of its kind – with a consortium of 26 global financial institutions.

The deal’s initial five-year term is aimed at supporting a number of the company’s goals, including its mission to increase the amount of recycled content used for its packaging. It incorporates a pricing mechanism designed to incentivise the company to reach its 2025 goals of 100% of products being in packaging that is “returnable or made from majority recycled content“.

The sustainable finance market is relatively young, but Leonie Schreve sees these emerging deals as clear motivators for Aligned Energy and AB InBev’s peers to follow suit. They will need to, because financing the transition to a sustainable future will separate those set to thrive from the rest.

“If you’re leading on sustainability, then you make yourself resilient for the future,” says Schreve. “If you don’t take any action, you will be out of business.”

Courtesy: Environmental Finance


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SUSTAINABILITY & CLIMATE CHANGE

Islamic Development Bank Invests $1.15 Billion in Kazakhstan Water Sector

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6 months ago

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November 26, 2024

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At the recent UN Climate Change Conference (COP29) held in Baku, Kazakhstan’s Deputy Prime Minister and Minister of National Economy, Nurlan Baybazarov, celebrated the signing of a landmark agreement with the Islamic Development Bank (IDB). This $1.15 billion investment—the largest project ever financed by the IDB—marks a pivotal step in fortifying Kazakhstan water sector in the face of climate change.

Kazakhstan, with its vast landscapes and varied climate, faces pressing water-related challenges. The country’s economic growth, combined with climate-driven water scarcity, has intensified the need for robust, adaptive infrastructure. This new project, focused on climate-resilient water management, reflects Kazakhstan’s commitment to long-term sustainability and the IDB’s dedication to supporting green growth in member nations. Here, we unpack the ambitious project, its goals, and the promising impact it holds for Kazakhstan water sector and beyond.

Kazakhstan Water Sector

Kazakhstan is the world’s largest landlocked country and has one of the most diverse climates in Central Asia. This diversity, however, also brings vulnerability. The country relies on a delicate balance of snowmelt, river inflows, and groundwater, all of which are under threat due to rising temperatures, decreased rainfall, and increasing demand from industrial, agricultural, and urban sectors.

Kazakhstan’s water usage primarily serves the agriculture sector, which consumes an estimated [X]% of total water resources. The nation’s agricultural productivity, food security, and rural livelihoods are directly tied to the reliability of these water supplies. However, aging infrastructure and inefficient water management have compounded the scarcity issue. The government has been working toward sustainable water use, yet climate-related stresses make this goal increasingly challenging.

A 2023 study by the World Bank warned that Central Asia, including Kazakhstan, could face a 30% reduction in water availability by 2050 due to climate change. With urban growth rates accelerating, the water demand in cities like Astana and Almaty is rising, increasing strain on outdated water management systems.

In response, Kazakhstan has developed a 2050 Development Strategy that prioritizes water conservation, infrastructure renewal, and sustainable growth. With a clear aim to reduce water losses, promote efficient irrigation, and support resilience in rural and urban areas, the government has been seeking international partnerships to bring these goals to life. This is where IDB’s involvement brings valuable support.

The Islamic Development Bank’s (IDB) record-breaking $1.15 billion investment is a testament to Kazakhstan’s strategic importance and the IDB’s confidence in the nation’s economic direction. This funding will support the ‘Development of Climate-Resilient Water Resources’ project, crafted by Kazakhstan’s Ministry of Water Resources and Irrigation. IDB’s additional $3.5 million grant, dedicated to research and development, will further Kazakhstan’s capacity to build climate-smart water systems.

This partnership reflects IDB’s dedication to sustainable development in its member countries. In recent years, IDB has aligned its strategy with the United Nations Sustainable Development Goals (SDGs), emphasizing projects that promote water security, climate adaptation, and green infrastructure.

IDB’s work in climate-resilient projects spans various regions, from Africa to Southeast Asia. For instance, in Morocco, IDB invested in solar-powered water pumping systems to help farmers irrigate fields without relying on erratic rainfall. In Bangladesh, it supported flood protection initiatives that safeguarded crops and homes from monsoon-induced waterlogging. IDB’s mission has become increasingly climate-focused, with a major of its annual portfolio dedicated to projects that enhance resilience against environmental changes.

What the Project Entails

The Kazakhstan water sector project is divided into multiple stages, with each phase designed to tackle a specific set of challenges. The first phase focuses on strengthening water storage, distribution, and irrigation across key agricultural and urban areas. The scale of this initiative reflects Kazakhstan’s commitment to transforming its water infrastructure.

Key Project Goals Include:

  1. Building New Reservoirs
    The construction of four new reservoirs and the restoration of four existing ones aim to bolster the nation’s capacity for water storage. With a modernized reservoir system, Kazakhstan can regulate water availability, minimizing the impact of seasonal variations and droughts.
  2. Rehabilitation of 115 Canals
    This ambitious canal overhaul includes the Astana Reservoir Recharge Project, a critical step toward efficient water distribution. By reducing water losses due to leaks and evaporation, the canal upgrades are expected to improve irrigation for farming communities and sustain urban water supplies.
  3. Analytical Capacity-Building
    Alongside physical infrastructure, the project includes partnerships with institutions like the Kazakh Research Institute of Water Management. These collaborations will focus on river basin studies, water demand forecasting, and the implementation of early warning systems for water scarcity.
  4. Equipping Kazvodkhoz for Water Management
    Kazakhstan’s state-owned water agency, Kazvodkhoz, will receive advanced equipment and automation systems to streamline operations. This will empower local water authorities to monitor water levels, quality, and flow rates more accurately, paving the way for sustainable resource management.

This comprehensive project spans various regions within Kazakhstan: Akmola, Almaty, Zhambyl, Kyzylorda, Turkestan, West Kazakhstan, Zhetisu, and the capital city, Astana. These areas were selected due to their agricultural significance and vulnerability to water-related challenges. By focusing on regions with high water demand, the project will directly impact farmers, residents, and industries relying on consistent water supplies.

Why This Investment Matters

Water security is fundamental to Kazakhstan’s socio-economic future. For a country that heavily depends on agriculture, inadequate water supplies pose a risk not only to food production but also to economic stability. Moreover, water shortages can lead to rural migration, which places additional pressures on urban infrastructure and services.

The IDB-funded project is more than just an infrastructure initiative; it represents a vision for a climate-resilient Kazakhstan. The introduction of automated water management systems, for instance, will allow Kazakhstan to monitor resources with precision, ensuring that water use is optimized based on real-time needs and availability. With climate change affecting the region’s hydrology, these innovations could be a game-changer in mitigating the impact of droughts and floods.

Climate change is a global challenge, but its effects are highly localized. For Kazakhstan, climate-driven changes such as altered river flows and erratic precipitation patterns directly threaten water resources. This project incorporates climate-smart water management practices aimed at adapting to these shifts.

The Development of Climate-Resilient Water Resources project will serve as a blueprint for other Central Asian countries grappling with similar issues. From adopting water-saving technologies to diversifying irrigation methods, Kazakhstan’s efforts could inform climate adaptation across the region.

Baybazarov remarked at COP29, “This investment is not just about building infrastructure; it’s about preparing Kazakhstan for the future. By modernizing our water systems, we are investing in the resilience of our communities and ensuring that our development is sustainable for generations to come.”

Climate-Resilient Infrastructure

IDB’s involvement in Kazakhstan water sector highlights its broader focus on climate resilience. With a portfolio of over $X billion in climate-focused projects, IDB has established itself as a leading financier for sustainable infrastructure in emerging markets. Its projects aim to provide long-term solutions, whether through clean energy, water conservation, or sustainable agriculture.

In addition to this investment, IDB has supported water initiatives in countries like Sudan, where it financed water purification plants, and in Jordan, where it funded the construction of water reservoirs to tackle urban shortages. For Kazakhstan, IDB’s investment not only offers financial support but also brings in technical expertise and strategic insights that will help shape the country’s water policies for years to come.

This water sector project is expected to create numerous job opportunities, particularly in construction, engineering, and environmental management. By hiring local workers and contracting regional companies, the initiative will boost Kazakhstan’s economy and provide valuable skills training in fields like infrastructure maintenance and hydrology.

The social impact, however, extends beyond economic growth. Improved water infrastructure will help rural communities thrive, reduce health risks associated with water scarcity, and ensure reliable access to water for drinking and sanitation. Additionally, these improvements align with the government’s Sustainable Development Goals (SDGs), particularly those related to water access, health, and economic growth.

In the long term, modernizing water infrastructure could significantly enhance Kazakhstan’s agricultural sector. With efficient irrigation and water storage systems, farmers can expand crop production, diversify agricultural exports, and build resilience to climate-induced challenges. The impact on food security and rural livelihoods could transform Kazakhstan into a model for water management in arid and semi-arid regions.

Building a Sustainable Future

The IDB-funded project represents a critical milestone in Kazakhstan’s journey toward sustainable water management. As the country gears up for an uncertain climate future, it recognizes the importance of proactive planning and international collaboration. The Islamic Development Bank’s support is an endorsement of Kazakhstan’s vision, demonstrating that large-scale, impactful projects can be achieved through partnerships focused on long-term sustainability.

Kazakhstan’s commitment to water sector reforms is only the beginning. With new infrastructure in place, the next steps will involve policy improvements, capacity-building for local agencies, and continuous adaptation to environmental changes. As Kazakhstan continues on its path toward climate resilience, the lessons learned from this project will serve as a guiding light for other nations facing similar challenges.

Kazakhstan water sector stands at the cusp of transformation, thanks to the Islamic Development Bank’s historic $1.15 billion investment. This project embodies a vision for a resilient, climate-adaptive future where water resources are managed sustainably to support both urban and rural communities. As Kazakhstan embraces the future, this partnership serves as a reminder that tackling climate change requires bold initiat


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SUSTAINABILITY & CLIMATE CHANGE

The Trillion-Dollar Question: Can Global Unity Find the Funds to Halt Climate Catastrophe?

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6 months ago

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November 12, 2024

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At the COP29, currently taking place from November 11 to November 22, 2024, in Baku, Azerbaijan, one is faced with a monumental question that frames every discussion: Can the world’s wealthiest nations truly unite to raise the trillion dollars a year needed to stop the climate crisis in its tracks? It’s a staggering figure, yet as floods, wildfires, and extreme weather ravage communities worldwide, it becomes clear this funding is no longer a distant aspiration but an urgent necessity. Baba Yunus Muhammad argues that the stakes are high, and time is running out – but the money exists. But the question is, will world leaders muster the political will to make it happen?

As the UN’s COP29 summit unfolds in the historic city of Baku, Azerbaijan, an imposing question looms over the gathering: Can the world’s wealthiest nations mobilize the staggering $1 trillion needed annually to address the climate crisis and prevent the most vulnerable from facing environmental disaster? With 198 nations represented, the summit is grappling with an urgent challenge: finding the financial resources to transition the world away from fossil fuels and toward a green, resilient future.

The stakes are high, as floods, droughts, and wildfires continue to devastate communities worldwide. Last week alone, torrential floods swept across Spain, wreaking havoc and claiming lives, a tragic reminder of the escalating risks of inaction. As Simon Stiell, the UN’s climate chief, aptly summarized: “It’s not a question of whether we can afford to tackle the climate crisis; it’s a matter of whether we can afford not to.”

A Trillion Dollars – A Bargain to Save Our Planet

A trillion dollars may sound astronomical, yet in the context of global economics, it is but a fraction of what is achievable. The global economy, which generated approximately $105 trillion in GDP last year, could feasibly absorb this cost, representing less than 1% of annual output. To put it in perspective, the world’s oil and gas industry has made a trillion dollars in profit every year for the past 50 years. These figures make a trillion-dollar climate fund appear not just possible, but economically viable – a bargain, even – if channeled toward building a sustainable world.

The United States, one of the wealthiest and most polluting nations, has already pledged $1 trillion over three years to domestic climate initiatives, showing that the funds exist and can be directed toward climate action. But this example highlights a major issue: while the money is there, it has yet to flow equitably to the countries that need it most.

Developing Nations in Crisis: The Case for Climate Reparations

For many developing countries, the climate crisis is not a future threat but a present-day reality, manifesting in deadly storms, rising sea levels, and crop failures. These nations, which have contributed the least to global emissions, are bearing the brunt of the crisis. The UN Environment Program estimates that adaptation costs alone could exceed $500 billion annually by 2050 in developing countries if current warming trends continue. Yet, these nations are expected to shoulder a disproportionate share of the economic burden, even as they spend over $1 trillion each year on their own climate mitigation and adaptation efforts.

This inequity has led poorer nations to call for the funds to be delivered as grants, rather than loans, which they argue would place them under additional financial strain. Currently, many of these nations are spending more on debt repayments than they receive in climate aid, a situation that risks deepening poverty and economic vulnerability in the Global South.

Financing the Future: Proposed Solutions

As negotiations continue in Baku, several financing options have emerged, each with its own set of challenges:

  1. International Aid and Development Bank Loans: Wealthier countries’ foreign aid budgets will contribute to the climate fund, though experts caution against merely rebranding existing aid as “green.” The World Bank and other development banks, meanwhile, could potentially offer low-interest loans, amounting to $200 billion to $400 billion per year. Yet, as seen at recent meetings in Washington, progress remains slow.
  2. Solidarity Taxes: Climate advocates are increasingly calling for global taxes, such as a 2% wealth tax on billionaires, estimated to raise as much as $250 billion in Brazil alone. Taxes on frequent flyers, international shipping, and financial transactions have also been suggested, but these measures would require unprecedented global cooperation.
  3. Ending Fossil Fuel Subsidies: Despite a climate emergency, fossil fuel subsidies persist globally, totaling a mind-boggling $600 billion annually. Cutting these subsidies could free up funds for climate action, though politically entrenched interests make this an uphill battle.
  4. Private Sector Investments: With the right incentives, private sector finance could help bridge the funding gap. Yet many view this as a means for rich countries to outsource their climate responsibilities, sparking debate on the balance of public and private contributions.

Global Disparities in Climate Responsibility

Another contentious issue is the classification of “developed” and “developing” nations under the UN’s climate treaty. Originally defined in 1992, this classification now excludes several major polluters who remain classified as “developing,” including China, South Korea, and the Gulf states. These emerging economies, once minor players, have become both economically powerful and significant carbon emitters. The EU, the largest provider of climate finance, argues that these countries must also step up and share the responsibility, especially the oil-rich Gulf states, which have reaped enormous profits from fossil fuels.

Saudi Arabia, for example, recently reaffirmed its commitment to extracting every ounce of its vast oil reserves. Prince Abdulaziz bin Salman al-Saud, the kingdom’s energy minister, stated at the Future Investment Initiative in Riyadh, “We will monetize every molecule of energy this land has, period.” This commitment stands in stark contrast to global climate goals and underscores the challenge of achieving universal cooperation on climate finance.

Time is Running Out

Despite these challenges, a potential solution is emerging from the negotiations: a core agreement around hundreds of billions in public finance, supplemented by private investments to reach the trillion-dollar goal. The question, however, is one of timing. The world’s previous climate finance target of $100 billion per year took over a decade to fulfill, and with climate disasters escalating, time is a luxury we no longer have.

The world has the means, the technology, and the funding to curb climate catastrophe – but without political will and coordinated action, even the best solutions remain theoretical. Ani Dasgupta, head of the World Resources Institute, reminded the summit’s attendees, “Ultimately, it’s a political decision to move the world forward to a safer place for our children and everyone else.”

The trillion-dollar climate fund is no longer a “nice-to-have”; it’s a necessity. COP29 represents a crucial juncture: the global community’s commitment today will define the fate of our planet tomorrow. As the summit presses on, the world watches – and waits – to see if global leaders will rise to the trillion-dollar challenge.


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AGRIBUSINESS & AGRICULTURE

Sweet Sorghum offers Solutions in Drought-hit Southern Africa

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12 months ago

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May 29, 2024

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By Hamond Motsi

The southern African region is battling with drought at present. This is the result of El Niño, a natural climate cycle characterised by changes in Pacific Ocean temperatures. It has effects on global weather patterns, particularly rainfall and temperature.

The drought has hit the region’s agricultural productivity hard. Malawi, Zambia and Zimbabwe have declared a state of disaster with respect to their current agricultural outputs. They are seeking humanitarian assistance in the form of food aid to feed their people. The downturn also has economic implications, since over 70% of people residing in the region’s rural areas rely on agriculture for their livelihoods.

The dire situation underscores how important it is for the agricultural sector to prevent, avoid or prepare for the impacts of climate change, which will also bring extremes of weather.

One measure the sector can take is to cultivate biofuel crops. These are crops rich in starch, sugar or oils that can be converted into bioethanol directly or through a fermentation process. Bioethanol, a type of ethanol produced from biological or plant based sources, emits fewer greenhouse gases compared to fossil fuels like petroleum, natural gas and coal. Commonly used biofuel crops include sugarcane, maize, grain sorghum, sugar beet, rapeseeds and sunflower.

These conventional biofuel crops do have drawbacks, however. They are highly susceptible to extreme weather events. They require high upfront investment for fertilisers, chemicals and irrigation. And they compete with food production – if they’re grown as biofuels they can’t also be used as food because of how they have to be processed.

So, researchers are always on the lookout for crops that might be good biofuels without those problems. Sweet sorghum, which is indigenous to the African continent, is one such crop. Unlike the better-known sorghum, it has sweet juice in its stems. In a recent study, I reviewed scientific literature to analyse the potential significance of sweet sorghum to African farmers because of its multipurpose nature and ability to adapt under harsh climatic conditions.

Multiple uses

Sweet sorghum has many uses. It can produce grains, animal feed and sugary juice, making it unique among crops. The grains from sweet sorghum are prepared as steamed bread or porridge malt for traditional beer, as well as in commercial beer production across the continent.

They’re nutritionally rich, with high energy values (342 calories/100 g), proteins (10g/100 grains), carbohydrates (72.7g/100 grains), and fibre (2.2g/100 grains) as well as essential minerals such as potassium (44mg/100 grains), calcium (22mg/100 grains), sodium (8mg/100 grains) and iron (3.8mg/100 grains).

The nutritional value of maize is fairly similar: proteins (8.84g/100 grains), carbohydrates (71.88g/100 grains), fibre (2.1g/100 grains), potassium (286mg/100 grains), calcium (10mg/100 grains), sodium (15.9mg/100 grains) and iron (2.3mg/100 grains).

What sets sweet sorghum apart from a crop like maize is that it’s also resilient in arid climates and has multiple other uses. For instance, it produces a lot of plant material (biomass) as it grows, which is left over after harvest. That’s why it’s useful as animal feed too.

Animal feed is made from what remains once the sweet sorghum crop has been harvested and its grains and stem juice stripped off. The residue is high in nutritional content, which can improve the quality of diets of animals, including cattle. The grains can also be used for animal feed.

The sweet juice in the crop’s stalks is what’s used to create bioethanol. Sweet sorghum contains sucrose, glucose and fructose, which are essential for bioethanol production. Of the conventional biofuel crops I’ve mentioned, only sugarcane yields more ethanol. Studies in the United States have shown that sweet sorghum far outstrips maize when it comes to bioethanol production: it yields 8,102 litres per hectare planted, while maize yields just 4,209 litres per hectare.

Resilient

Perhaps most importantly given the southern African region’s current drought struggles, sweet sorghum is well-suited for cultivation in the sorts of adverse conditions that are typically challenging for conventional biofuel crops.

One of the key characteristics of sweet sorghum varieties is their drought resistance. It allows them to enter a dormant state during extended periods of dryness and resume growth afterwards. Research has shown that, under intense water scarcity conditions, sweet sorghum makes use of its stalk juice to supplement its plant needs.

Sweet sorghum’s ability to withstand low water and nitrogen inputs, as well as its tolerance for salinity and drought stress, makes it an ideal crop for farmers in arid regions. This is why it’s widely used in other parts of the world, including the US, Brazil and China.

Investing in sweet sorghum

The continent’s current agriculture value chain is dominated by major crops like maize, wheat and rice, which all originate from outside Africa. Not enough attention is given to crops of African origin, like sweet sorghum, even though it is a multipurpose, hardy crop with great potential for farmers. People are more familiar with sorghum, not the sweet variety, and it is also under-researched.

Governments should be using their agriculture extension services to raise awareness among farmers and consumers about the benefits and practical applications of sweet sorghum in people’s diets.

Developing recipes and secondary or industrial products can enhance the feasibility and awareness of sweet sorghum farming. By investing in research and development, the full potential of sweet sorghum cultivation can be unlocked through governments and the private sector.

Hamond Motsi is a PhD Student in Agriscience, Stellenbosch University

Courtesy: The Conversation


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