Harnessing digitalisation for climate resilience in vulnerable communities
Domina and her five children used to live in a dingy house where the rain could enter, and they had very little to eat. Through VisionFund's financial inclusion and digitalisation efforts, she was able to access loans, which allowed her to cultivate her farm, grow vegetables, and buy another piece of land that helped support her family's needs.
Digitalisation is having a transformative impact on climate resilience in Kenya. A partnership between VisionFund (VF) and a local fintech provider is enabling farmers to use their mobile phones to access digital loans, for example. Within hours of receiving a drought warning, farmers could borrow emergency funds and then buy water tanks and other critical supplies that protected their crops from the lack of rain.
Every year, climate disasters push an additional 26 million people into poverty. Women and children are disproportionately affected. Mobility and socio-cultural barriers mean that women are 14 times more likely to die during disasters, for example. Children, especially those under five, are 20 times more likely to die when disasters cause hunger, malnutrition or disease. This tragic reality should compel us all to find solutions. Every family, especially those with children, should have enough healthy food. We need to build more and better resilience in the face of accelerating climate change.
We are not powerless, however. We can and must do more. On a visit to Kenya last year, a smallholder farmer told me how floods had devastated his crops, pushing his family to the edge of financial ruin, but digital technology had helped him to rebuild. Using mobile money, he accessed an emergency loan, allowing him to purchase new seeds and water tanks. The conversation reminded me how digitalisation has a vital role to play in fostering climate resilience, especially through microfinance networks like VF.
Digitalisation as a solution
Digitalisation opens multiple routes towards resilience. At VisionFund, we see for ourselves on a daily basis how technology can empower vulnerable populations. Digital tools can offer immediate access to financial services such as emergency loans and savings. They allow families to recover more quickly from climate disasters. In rural areas, for example, mobile banking and mobile money platforms enable women to access loans quickly and efficiently. These women can then invest in water-efficient technologies or drought-resistant seeds, improving food security for their families.
Digitalisation has the added benefit of lower carbon emissions. By going paperless and cashless, VisionFund has reduced its carbon footprint considerably. Digital loan applications together with cashless disbursement and repayment processes require fewer trips to remote branches. Such applications reduce the emissions associated with traditional paper-heavy transactions that are based on cash.
Prevention through digital innovation
Digital innovation isn't just about a response, of course. It's also about prevention. Our strategy leverages digital platforms so that farmers can practice climate-smart agriculture, including better land and water management. By providing the necessary tools, for example, we support the farmers to take a more proactive approach, protecting themselves from the worst effects of climate change while enhancing their productivity and long-term food security.
Digitalisation is not a silver bullet, however. Rather, it is a powerful tool that must be part of a broader, more holistic approach to climate resilience. To truly scale our impact, we will also need to invest more in infrastructure, training, and access to digital tools for the most vulnerable. And that's where we need more engagement from the global development and finance community.
Imagine a world, for example, where every smallholder farmer can access the necessary financial tools and other resources to weather any storm. As decision-makers and leaders, we can accelerate these efforts. We can support initiatives that connect digitalisation to climate action, help communities to build resilience today, and create a more sustainable and inclusive tomorrow for all.
VisionFund is committed to leading this change. We believe that digitalisation and climate resilience go hand in hand, and that the future of microfinance must work with both for lasting impact. As we continue to innovate and grow, we invite the global development and finance sectors to join us in this mission. Together, we can empower the world's most vulnerable not just to survive but also to thrive in the face of climate change.
The climate clock is ticking, however, and the communities that we serve cannot afford to wait. The time to act is now.
Jacinta Kamemba is the global director of digitisation of VisionFund, the financial empowerment and livelihood arm of World Vision. She plays a pivotal role in steering global operations and technological advancements across the network. Over the past two decades, Jacinta has been a distinguished leader in digital finance and information technology within the microfinance sector.
Her expertise is marked by her significant international exposure, having effectively led information technology and digital finance projects and teams in over 20 countries. Jacinta is skilled in navigating complex global markets, driving digital transformation initiatives that enhance operational efficiencies and service delivery.