First-Ever Large-Scale Climate Funding Targets Low-Emission, Climate-Resilient Dairy Systems in East Africa – African Business Innovation

A landmark six-year programme to build a climate-resilient and low-emission dairy sector is now underway across East Africa. The Dairy Interventions for Mitigation and Adaptation (DaIMA) programme, led by the International Fund for Agricultural Development (IFAD) with US$150 million in co-financing from the Green Climate Fund (GCF), represents a total investment of US$358 million.

Presented at the recently concluded 9th International Greenhouse Gas and Animal Agriculture (GGAA) conference in Nairobi, the project will directly benefit 2.5 million rural people in Kenya, Rwanda, Tanzania, and Uganda, and indirectly reach an additional 15.4 million individuals along the dairy value chain.

The dairy sector is central to food security and livelihoods in East Africa but faces mounting pressure from climate change, including heat stress and drought. Strengthening the productivity and efficiency of East African dairy systems will reduce emissions and enhance resilience. This will be achieved through equipping smallholder farmers with climate information, improved breeding and veterinary services, better reproduction and feed management, and innovative technologies to boost productivity while cutting emissions.

The programme is already operational through four IFAD projects aligned with national priorities in the target countries. These initiatives strengthen institutions and policy frameworks while introducing climate-responsive practices such as improved feed and fodder systems, manure management, and pasture restoration. DaIMA aims to restore nearly 180,000 hectares of rangeland and support more than two million dairy cattle.

“DaIMA is about transforming the backbone of East Africa’s dairy sector,” said Sara Mbago, Regional Director, East and Southern Africa, IFAD. “By combining innovation, investment and policy reform, we are helping farmers adapt to a changing climate while reducing emissions and creating opportunities for growth.”

The programme is expected to boost milk production by 34 percent and reduce emissions by 2.1 million tonnes of CO₂ equivalent over 20 years. Its holistic approach strengthens veterinary and extension services, enhances breeding and feeding systems, restores degraded lands, and expands access to climate information. A dedicated Green Dairy Financing Facility will unlock climate finance for farmers, cooperatives, and small and medium-sized enterprises, accelerating the shift to low-emission value chains.

DaIMA brings together a powerful coalition of partners, including IFAD, GCF, the International Livestock Research Institute (ILRI), the FAO Investment Centre, the Global Methane Hub, the Global Dairy Platform, and USAID Food and Agriculture. The programme places strong emphasis on inclusion, ensuring women, youth, and marginalized communities are at the centre of climate action and benefit equitably from the transformation.

As climate pressures intensify, DaIMA stands as a blueprint for sustainable agricultural transformation, linking innovation, finance, and policy to build a low-emission, climate-smart dairy economy across East Africa.

ILRI will provide technical assistance to the four countries on monitoring, reporting, and verification of GHG emissions as a regional centre of excellence through its Mazingira Centre. “DaIMA programme represents a major milestone for the dairy sector. By scaling up low-emission, climate-resilient solutions, DaIMA directly supports the implementation of the Paris Agreement, accelerating the sustainable transformation of the dairy sector in the region,” said Appolinaire Djikeng, Director General of ILRI.

Photo courtesy: @ILRI

About the International Fund for Agricultural Development (IFAD)

IFAD is an international financial institution and a United Nations specialized agency. Based in Rome – the United Nations food and agriculture hub – IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition, and strengthen resilience. Since 1978, IFAD has provided more than US$25 billion in grants and low-interest loans to fund projects in developing countries.

About the Green Climate Fund (GCF)

The Green Climate Fund is the world’s largest dedicated climate fund. It was established to help developing countries limit or reduce their greenhouse gas emissions and adapt to climate change.

About the International Livestock Research Institute (ILRI)

The International Livestock Research Institute (ILRI) works to improve food and nutritional security and reduce poverty in developing countries through research for efficient, safe, and sustainable use of livestock. ILRI is a member of the CGIAR System Organization, a global research partnership for a food-secure future.

About DaIMA

The Dairy Interventions for Mitigation and Adaptation (DaIMA) programme is a six-year regional initiative funded by IFAD, GCF, and the national governments of Kenya, Rwanda, Tanzania, and Uganda. It aims to enhance climate resilience, reduce greenhouse gas emissions, and strengthen the dairy value chain through policy reform, capacity building, technology adoption, and green finance.