The African Development Bank Group has launched an innovative project aimed at addressing climate-related disasters in Comoros, Djibouti, Somalia, and South Sudan. The countries recently ratified an agreement at the Bank’s 2024 Annual Meetings in Nairobi, signifying a significant milestone in the fight against climate change.
The Multi-National Climate Disaster Risk Financing Project, valued at $35 million, seeks to strengthen resilience and response mechanisms to climate shocks in the participating countries. This initiative is part of the Bank’s Africa Disaster Risk Financing Programme (ADRiFi) and is designed to facilitate the implementation of climate risk financing instruments, increase the adoption of pre-arranged climate and disaster risk financing instruments, and enhance the adaptation and resilience of the targeted beneficiary countries against climate risks.
The signing ceremony was attended by several high-ranking officials, including the 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. Vice President Dr. Beth Dunford represented the Bank Group, while other notable attendees included Bank Director General for East Africa Nnenna Nwabufo and the African Risk Capacity Chief Executive Officer Lesley Ndlovu, who is the implementing partner of the ADRiFi program.
Subsequent to the signing ceremony, the finance ministers conveyed their appreciation to the African Development Bank for its support. Comoros Finance Minister Chanfiou underscored the challenges posed by recurrent floods in the country and their significant impact on economic growth. Djibouti Minister of Economy and Finances Ilyas Moussa Daweleh emphasised the region’s vulnerability to climate-related conflicts and migrations and welcomed the Bank’s intervention. Vice President Dr. Beth Dunford highlighted the threat of climate change in Africa, particularly in the Horn of Africa and small island nations, and stressed the need for proactive measures to address the challenges.
The Africa Disaster Risk Financing Program Multi-Donor Trust Fund, which provides financing for the insurance premiums, plays a crucial role in bolstering disaster insurance protection for African countries. The Trust Fund collaborates with the African Risk Capacity Ltd. to promote parametric insurance and other climate risk management instruments in Africa. Since its establishment in 2018, the ADRiFi Programme has provided technical assistance and capacity building to 16 African countries, enabling them to access the Sovereign Risk Pool run by the African Risk Capacity. The Bank Group’s investment of over $100 million in beneficiary countries has significantly contributed to protecting millions of people against severe drought and tropical cyclones and enhancing anticipatory planning for climate disaster risks.
The impact of the ADRiFi programme is evident in the recent drought that affected more than 19.4 million people across the Horn of Africa, leading to the loss of millions of livestock. The proactive measures taken under the ADRiFi Programme have been instrumental in mitigating the impact of climate-related disasters and safeguarding vulnerable communities.
The African Development Bank’s commitment to addressing climate change and its profound impact on African countries exemplifies the importance of collaborative efforts in combating global challenges. The Multi-National Climate Disaster Risk Financing Project sets a precedent for proactive and sustainable solutions to climate-related risks, emphasising the need for concerted action and robust partnerships to build resilience and protect livelihoods in the face of environmental challenges.