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East Africa Secures $358 Million from IFAD to Bolster Dairy Production

East Africa Secures $358 Million from IFAD to Bolster Dairy Production
Friday, 04 July 2025 17:10

• IFAD initiates a program worth $358.26 million to bolster dairy sector in Kenya, Rwanda, Tanzania, and Uganda

• The program, called DaIMA, aims to strengthen the resilience of dairy systems, with a direct anticipated impact on 2.5 million people

In East Africa, livestock farming is one of the main sources of revenue for small-scale farmers. As investment in the dairy sector increases, the issue of sustainability is being increasingly recognized by governments and their partners.

The Green Climate Fund (GCF) Board has approved a program named DaIMA (Dairy Interventions for Mitigation and Adaptation) to support the development of the dairy sector in four East African countries - Kenya, Rwanda, Tanzania, and Uganda.

The announcement was made during the 42nd session of the GCF Board, held from June 30th to July 3rd in Port Moresby, Papua New Guinea. This program, initiated by the International Fund for Agricultural Development (IFAD), will be implemented in partnership with FAO and the governments of the benefitting countries at a total cost of $358.26 million.

According to officials, the initiative aims to strengthen the resilience of dairy systems, with a direct anticipated impact on 2.5 million people.

The interventions will focus on promoting and disseminating climate-smart practices within livestock farming, improving rangeland management, valorizing manure through the production of biogas and organic fertilizers, reducing milk losses, and increasing productivity in local farms.

The program also aims to strengthen national dairy policies, climate services, as well as greenhouse gas emissions measurement, reporting, and verification systems, thus creating the necessary conditions for a sustainable reduction in emissions and productivity gains.

IFAD's ambitious goal is to reduce the intensity of greenhouse gas emissions associated with dairy farming systems by 29% and increase dairy production by 34% in the targeted countries.

It is worth noting that Kenya, Rwanda, Tanzania, and Uganda together produced nearly 14 million tons of milk in 2023, more than a quarter of Africa's estimated production of 53.1 million tons this year, according to FAO.

As East African countries increase their investment to boost their production, the sustainability of the dairy industry has become a strategic issue. In 2023, Kenya adopted a new roadmap aiming to double its production by 2030. Rwanda committed in 2024 to invest $100 million by 2029 as part of its Dairy Development Project, whereas Tanzania launched a $174.3 million project in March 2025 to develop the industry.

This article was initially published in French by Stéphanas Assocle

Edited in English by Ola Schad Akinocho

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