Flagship project
Supporting climate-friendly agriculture through matching grants in Laos
Helping farmers, agricultural production groups and agribusinesses in Lao PDR access finance, invest in climate-smart technologies and strengthen more productive, sustainable value chains.
The challenge
Agriculture remains central to Lao PDR's economy, but many farmers and agribusinesses face limited access to finance, low productivity and weak links to markets. Climate risks add further pressure, especially where traditional farming methods depend on scarce water and labour-intensive practices. To become more competitive, agricultural value chains need investment, stronger farmer groups and more climate-friendly production methods.
Our goal
Improving agricultural competitiveness in selected project areas by developing more productive, resource-efficient and climate-friendly agribusiness value chains. The focus is on helping farmers and agribusinesses use resources more efficiently, access finance, upgrade production and connect more effectively from farm to market.
Our approach
We help agribusinesses and farmer groups invest in better equipment, technologies and production practices. Through a Matching Grant Scheme, private businesses can upgrade their production capacity and introduce more efficient solutions. Agricultural Production Groups receive training in climate-smart agriculture and support through a Smallholder Financing Scheme. By linking farmers, agribusinesses and commercial banks, the work improves access to finance while strengthening cooperation across the value chain.
Key highlights
- Supporting farmers and agribusinesses to make practical investments in more climate-friendly and competitive agriculture
- Helping agribusinesses access matching grants to upgrade equipment, technology and production capacity
- Supporting Agricultural Production Groups with training and smallholder finance to improve productivity and market access
- Promoting climate-smart agriculture practices that reduce water and energy use, lower greenhouse gas emissions and build resilience to climate change
- Encouraging contract farming between farmer groups and agribusinesses to create more reliable market linkages
- Introducing Good Manufacturing Practices to improve product quality, safety and consistency
- Promoting green finance solutions that help agricultural businesses invest in more sustainable production
- Together, these activities strengthen value chains from production to processing and create better conditions for farmers and businesses to grow sustainably
Voices from the field
Great support from GOPA that helped the project national staff to contribute to the project success.
APG grants assisted us in investing in common assets that will improve productivity.
New knowledge on climate friendly mechanisation is useful and opens new business approaches.
Success story
Water-smart chili farming in Xiengda Village
For a chili farmer in Xiengda Village, Saysetha District, irrigation was a daily challenge. His field depended on a single groundwater source, and traditional farming methods required significant labour. Water was not enough for the area under cultivation, making it difficult to increase production and supply the market on time.
Through support to his Agricultural Production Group, he received training in climate-smart agriculture and financial support from the Smallholder Financing Scheme. This enabled him to build an additional groundwater well and install sprinklers at several points across his field.
The results were immediate. Irrigation became faster and more efficient, reducing both labour and operating costs. With better water access and improved farming practices, he increased his yield, expanded his cultivated area and became better able to meet market demand.
His experience shows how practical investments in climate-smart agriculture can help smallholder farmers save time, use resources more efficiently and grow their businesses.
Xiengda Village, Saysetha District, Lao PDR
Special features
Insights from the field
For more insights from the field, explore our selected LinkedIn updates on climate-smart agriculture, green finance and matching grants.
Impressions
