In Tanzania, businesses that have a positive impact on the environment are supported with innovative financing mechanisms.
Photo: Kokoa Kamili

SDC: Innovative approaches for a sustainable and self-determined development

Celebrated every year on the 25th of May, across the continent and in the diaspora, Africa Day is a symbol of Africa's independence, self-determination and unity. The Swiss Development Cooperation (SDC) is using this day to showcase three innovative projects that support sustainable and self-determined development in African countries.

Africa’s enormous potential and diversity are rarely highlighted. Yet the continent has the world's youngest population, education levels are rising steadily, and the economy is growing. The UN predicts that Africa will account for more than 25 per cent of the world's population by 2050 and will thus play a key role in global development. This makes it all the more important to finance future-oriented, innovative projects that support the sustainable and self-determined development of the continent’s countries.

The SDC understands innovative projects in particular as approaches that contribute in an innovative way to achieving the four goals of the 2025–2028 International Cooperation Strategy: human development, sustainable economic development, climate and environment, as well as peace and governance. The SDC focuses on partnership-based approaches that can be flexibly adapted to local contexts and needs in order to provide added value.

Three SDC-funded projects might give examples for Swiss development strategies:

Chad: new prospects through networks and market integration

Chad is facing various challenges, such as the consequences of climate change or the lack of economic prospects, which particularly affects the young and rural population. A project to promote the use of non-wood forest products (NWFPs), such as tamarind and honey, aims to improve food security and quality as well as the living conditions of rural populations.

In addition to strengthening the technical skills of producers, the Market Systems Development approach is also pursued. This involves connecting the various actors along the value chain, which in turn promotes an efficient, more autonomous and sustainable economic environment. Small entrepreneurs, especially women and young people, are thus enabled to better market their products and thereby increase their income.

  • 2,809 stakeholders from micro, small and medium-sized enterprises (MSMEs) have received entrepreneurship training.
  • 1,739 stakeholders from MSMEs have improved the quality of their products.
  • The first national fair for non-wood forest products was organised in N'Djamena in February 2025 to promote networking between producers and key actors in the value chains.
  • A network of advisors for entrepreneurship and financial education has been established.

Tanzania: impact oriented financing for a more climate-resilient country

Tanzania is the second-largest economy in East Africa and is increasingly affected by the impacts of climate change, although the country contributes only minimally to global greenhouse gas emissions. The consequences include food insecurity, water scarcity and the loss of livelihoods for the population. Nevertheless, Tanzania receives only 0.75 per cent of the continent's total climate finance, which only covers 10.3 per cent of its needs.

To counteract this, the SDC is financing the Impact-Linked Fund for Eastern and Southern Africa (ILF ESA). The fund supports companies in Tanzania with various innovative financing mechanisms, thereby rewarding their contribution to actively mitigating climate change or adapting to its consequences. The aim is for companies to grow in an economically sustainable manner – i.e. to find investors – while increasing their positive impact on the environment.

Benin: transition to agroecology

Food insecurity has risen sharply in Benin in recent years, with children, young girls and women being the most affected. Also, climate change is having a severe impact on this country.

Although Benin has enormous agricultural potential and a large proportion of the population works in the agricultural sector, this cannot adequately meet the country's food needs. The land is predominantly farmed by smallholder farmers, a population group that is particularly affected by poverty. The use of chemical inputs, practices such as monocultures, increasing deforestation, poor water management and climate change have a negative impact on soil fertility and further exacerbate food security.

From summer 2026, the SDC will be funding a new programme in northern Benin to support the transition to agroecology, which promotes the sustainable use of natural resources, restores soil fertility and strengthens rural communities. This is an approach that the Beninese government is pursuing with the national strategy for the development of ecological and organic agriculture and into which the SDC programme fits.

The ProEcoLo programme combines local knowledge with findings from agricultural research and aims to improve market access for micro and small agricultural enterprises in order to contribute to climate-resilient food security and sustainable economic growth.

(SDC/wi)

For more information, visit the SDC website