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Value of additional
market transactions
Climate Change
In 2023, MDF observed growing business interest in investing in climate-relevant initiatives. MDF has identified climate solutions with a compelling business case for providing modest initial co-investments. Guided by the Facility’s Climate Change Strategy, MDF Sri Lanka also focused on mitigating the risks associated with adopting these solutions.
MDF signed 10 new climate-relevant partnerships in 2023. In agriculture, MDF co-invested with partners to develop climate-resilient farming clusters, contributing to enhanced sustainability and climate resilience in the dry zone. With MDF support, protected agricultural solutions were adopted across farming clusters in the dry zone and the central highlands, significantly reducing climate vulnerability, especially among women engaged in agriculture. In specialty coffee, MDF worked with processors to establish drying houses, which prevent rainfall damage and climate-proof the coffee value chain. MDF is promoting improved and organic fertilisers to reduce emissions from the use of synthetic fertilisers and promote long-term soil health. MDF worked with tourism partners to measure and report emissions, capitalising on the industry’s growing commitment to environmental responsibility. Many tourism stakeholders are showing interest in collaboration; this presents an opportunity for MDF to support Sri Lanka to establish itself as a sustainable destination for travellers.
MDF’s climate change investments align with the Sri Lankan Government’s climate change priorities, as outlined in the NDCs and the NAP.
Inclusion
Innovative approaches and technology present opportunities for women in agriculture
In 2023, MDF interventions continued to provide valuable insight into business incentives for women. Star Mushroom, a female-run business, expanded its supplier base from 36 to 220 in 2023, and business revenue grew by an impressive 200 per cent within a year. This result underscores a compelling business case to invest in largely female-run, home-based businesses with a hands-on approach to farmer engagement and continuous farmer education.
MDF also gained insight on using technology to increase women’s agency when dealing with market intermediaries. In Ratnapura, where MDF implemented Agrithmics’ digital weighing scales in a smallholder tea network, women (65 per cent of farmers) often face income loss due to weight tampering in tea production. By providing tamper-proof digital weighing scales, the women gained transparency and eliminated income loss. This trust-building measure attracted 120 more farmers to the network, showcasing the business value of investing in farmer-friendly supply chain solutions.
