The African Development Bank Group (www.AfDB.org) Vice President for Agriculture, Human and Social Development joined finance ministers and representatives from Comoros, Djibouti, Somalia and South Sudan for the signing agreement for a $35 million project to build resilience and responses to climate shocks. The signings took place on the sidelines of the Bank’s 2024 Annual Meetings in Nairobi.
The Bank’s Board of Directors approved the Multi-National Climate Disaster Risk Financing Project on 3 May 2024. Developed under the Bank’s Africa Disaster Risk Financing Programme (ADRiFi,) it will support the four countries to create an enabling environment for the adoption of climate risk financing instruments. It will also enhance uptake of pre-arranged climate and disaster risk financing instruments and strengthen adaptation and resilience of the targeted beneficiary countries against climate risks.
Union of the Comoros Finance Minister Mzé Abdou Mohamed Chanfiou, Djibouti Minister of Economy and Finance Ilyas Moussa Daweleh, Federal Government of Somalia Minister of Finance Bihi Iman Egeh and South Sudan’s Governor of the Central Bank Dr. James Alic Garang signed for their respective countries. Vice President Dr. Beth Dunford signed on behalf of the Bank Group. The Bank Director General for East Africa Nnenna Nwabufo and the African Risk Capacity Chief Executive Officer Lesley Ndlovu also attended. The ARC is the implementing partner of the ADRiFi programme.
“The Comoros is regularly hit by floods. This has an impact on economic growth and the mobilisation of public resources, but at the same time, people have to be relieved of their burden and help with reconstruction, and all this requires a lot of resources,” said Comoros Finance Minister Chanfiou. “I would therefore like to thank our bank, the African Development Bank, for this initiative.”
Djibouti Minister of Economy and Finances Ilyas Moussa Daweleh said: “The climate is a fragile factor for this region, creating inter-ethnic conflicts and causing major migrations. We see 28,000 migrants a month going to the Gulf States. The capital Djibouti has the particularity of being a peninsula facing rising sea levels. That's why we welcome the Bank's approach. This insurance will be useful for livestock farmers in the event of the loss of their livestock.”
Dunford said, “Climate change is becoming one of the most serious threats affecting lives and livelihoods in Africa. The Horn of Africa and small island nations such as Comoros are vulnerable to climate-related risks. This often comes in the form highly variable and erratic rainfall patterns, along with rising temperatures, droughts, floods and tropical cyclones that have increased in frequency and intensity.”
The Africa Disaster Risk Financing Program Multi-Donor Trust Fund, which provides financing for the insurance premiums, bolsters disaster insurance protection for African countries to mitigate the negative impacts of climate-related extremes. Working in collaboration with the African Risk Capacity Ltd. the funds will support the Bank’s promotion of parametric insurance and other climate risk management instruments in Africa.
The ADRiFi Programme, established in 2018, is supporting 16 African countries with technical assistance and capacity building. Participating countries also gain access to the Sovereign Risk Pool run by the African Risk Capacity. The Bank Group has invested more than $100 million in the beneficiary countries.
The programme has protected more than five million people against the risk of severe drought and tropical cyclones and enhanced anticipatory planning for climate disaster risks.
Across the Horn of Africa, more than 19.4 million people were affected by a drought that began in October 2020 and lasted through December 2022. At least 7 million livestock died across the region — more than 1.5 million in Kenya, between 2.1 million and 2.5 million in southern and south-eastern Ethiopia, and 3 million in Somalia.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Alphonso Van Marsh,
Principal Digital Content and Events Officer,
email: media@afdb.org
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
Source: Apo-Opa
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