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Africa Climate Risk Insurance Facility for Adaptation
In September 2023, the African Development Bank unveiled the Africa Climate Risk Insurance Facility for Adaptation (ACRIFA). The initiative is aimed at insulating countries against catastrophic weather-related events.
The facility, which will be hosted by the Bank, is expanding its pioneering Africa Disaster Risk Insurance Program into a facility that will develop insurance to help African countries, specifically, their agriculture sectors, prepare for, adapt and build resilience against adverse effects of climate change such as flooding and drought.
African Development Bank Group President Dr Akinwumi Adesina announced the new adaptation facility at a side event held at the Africa Climate Summit in Nairobi. He said it would raise an initial one billion US dollars of concessionary high-risk capital and grants to catalyse the development and uptake of insurance solutions to help countries, businesses and communities adapt to climate change.
“Extreme weather patterns negatively impact the livelihoods of many millions of farmers in Africa, the majority of those being women. One way we can tackle this issue is to be sure that farmers have access to crop and livestock insurance,” Adesina said.
The Africa Climate Risk Insurance Facility for Adaptation will also extend credit insurance to investment portfolios related to climate, agri-food system and enterprise development, as well as engaging primary insurers across Africa to ensure that business opportunities flow through them to continental and international re-insurers. In addition, it will support national governments to more efficiently manage climate disasters.
ACRIFA will expand on partnerships to carry out services to clients, such as the World Food Programme.
“We are very excited about ACRIFA’s potential to expand insurance cover to farmers who need it. The Facility will help to unlock private sector capital. We can inject trust in the market and unleash more capital than is currently provided in the market,” said Martin Frick of the World Food Programme.
Read more on the African Development Bank website