Africa: The Drylands Dividend - the Smart Investment for Powering a Water-Scarce World

Nairobi, Kenya - In a world growing hotter and drier, the benefits of investing in drylands are becoming increasingly clear. Covering a quarter of the planet's land, supporting 44% of arable land and half of livestock, these arid regions are the sole producers of many everyday essentials. Gum arabic from acacia trees, frankincense from Boswellia, shea butter from West Africa, and cashmere from cold goats are all harvested in these often overlooked areas.

As extreme weather events become more frequent, particularly with a projected 90% chance of a severe El Niño this year, the lessons learned from thriving in dryland environments offer invaluable guidance. Farmers living in historically rainy regions are now confronted with the same challenge that dryland farmers have faced for generations: how to produce value when water is uncertain.

Dryland systems boast a wealth of knowledge on thriving with limited water and high variability. Farmers employ strategies such as diversifying crops and livestock, closely monitoring land use, and creating diversified income streams to mitigate risks. These traditional practices, coupled with modern innovations, present an opportunity to develop sustainable business models and unlock investments that can harness the potential of these landscapes.

In Mongolia, where 75% of the land is already degraded or at risk, herders provide 40% of the world's raw cashmere. Transitioning from an extractive model to a diversified one has allowed Mongolian herders to offer a range of value-added products. Similarly, the Ojoba Women's Shea Cooperative in northern Ghana processes shea butter by hand, supplying international buyers like L'Occitane and Lush.

These examples demonstrate that the land already possesses value, and the skills required are already present within the communities.

Investment opportunities in drylands extend beyond raw commodities. Processing raw materials into oils, powders, and waxes can enhance returns, while infrastructure like water and energy systems can keep produce marketable in extreme heat. Furthermore, payments for ecosystem services, such as carbon storage, biodiversity preservation, and watershed protection, can complement these investments.

The European Union's €20 million Thrivelands initiative, led by Landscape Alliance, aims to foster collaboration and implement necessary innovations. These innovations include soil health monitoring tools, the Land Degradation Surveillance Framework, and the Regreening Africa app, which brings data to farmers' hands. However, public funding alone cannot unlock these opportunities.

Adapting to a drier world requires closing the $700 billion finance gap and restoring broken nature finance systems. Many companies already rely on drylands for their supply chains, and investing in restoring and protecting these landscapes can stabilize supply chains, manage risk, and meet climate goals.

The consequences of inaction are dire. Investing in dryland agriculture could prevent a 12% reduction in global food production over the next 25 years and avert the release of around 60% of stored carbon. With COP17's finance framework closing in 2030 and 82% of the required funding remaining unmet, it is imperative to leverage lessons from drylands to protect future food security before it's too late.