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The Board of Directors of the African Development Bank Group (www.AfDB.org) has approved grants of $34,796,402.40 to enhance resilience and adaptation to climate disaster risks for vulnerable communities in Malawi and Zimbabwe.
Under the Bank Group’s Africa Disaster Risk Financing (ADRiFi) initiative, the Mitigating Fragility through the Africa Disaster Risk Financing Programme in Southern Africa Project will bolster institutional capacity for climate risk preparedness and management; increase financial protection against climate disaster risks through sovereign climate disaster risk transfer; and promote the adoption of index-based crop insurance to mitigate against drought and other production risks at the micro-level.
Malawi and Zimbabwe face significant climate hazards, such as droughts, tropical cyclones, and flooding, but lack adequate mechanisms for climate risk management and adaptation. Both countries are particularly vulnerable to such climate shocks as drought, flooding and tropical cyclones, which contribute to their fragility. Strengthening disaster risk management, improving early warning systems, and enhancing institutional arrangements are crucial for effective preparedness and resilience in these countries.
Under the project, insurance payouts will provide timely and adequate financial protection to mitigate losses incurred from climate-related disasters, safeguarding households, and businesses from falling into poverty or bankruptcy. Climate risk insurance is expected to lead to behavioural changes among beneficiaries, such as increased investment in climate-resilient livelihoods or savings for future insurance premiums. This project will build on the successes of the ADRiFi program and the valuable contributions from our partners, which have significantly enhanced the financial resilience of both Malawi and Zimbabwe. Notably, during the El Niño-induced drought season of 2024/2025, African Risk Capacity, the Bank’s partner on ADRiFi, disbursed over $45 million to support farmers affected by the drought. This funding has provided crucial food assistance and recovery interventions, helping communities to rebuild and thrive in the face of adversity.
The project is aligned to the Bank’s High 5 Priorities, especially Feed Africa and Improve the Quality of Life of Africans. It also aligns with the Bank’s 10-year strategy (2024-2033) and will contribute to the Bank’s Country Strategy for Malawi which focusses on supporting economic diversification through investments in agriculture infrastructure and value chains.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Media Contact:
Olufemi Terry
Communication and External Relations Department
[email protected]
About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
This Press Release has been issued by APO. The content is not monitored by the editorial team of African Business and not of the content has been checked or validated by our editorial teams, proof readers or fact checkers. The issuer is solely responsible for the content of this announcement.
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