Africa Development Bank to insure 40 million farmers against climate shocks
The African Development Bank Group has unveiled its proposed $1 billion facility, known as the Africa Climate Risk Insurance Facility for Adaptation (ACRIFA), aimed at providing insurance coverage to over 40 million farmers across the continent.
The primary goal of the facility is to safeguard farmers and countries from the severe impacts of climate change, particularly catastrophic weather-related events. Additionally, it seeks to encourage private-sector investment in agriculture by mitigating risks.
President of the African Development Bank, Dr. Akinwumi Adesina explained that ACRIFA aims to mobilize $1 billion in concessionary financing, high-risk capital, and grants to support the African insurance industry, the AFDB announced.
“We have to support farmers, not abandon them, in the face of rising frequency and intensity of extreme weather events like drought, floods and pest infestation…We need to ensure that farmers and actors along the agricultural value chain are covered by insurance at scale,” the Bank President said.
“The eyes of more than 40 million smallholder farmers in Africa are on us. Let us make ACRIFA the answer to their prayers…ACRIFA will systematically support the African insurance industry to unlock financing for investments in climate-smart and green technologies,” he added.
The facility received widespread acclaim from entities such as the World Food Programme (WFP), development agencies, insurance companies, and the private sector during a side event at COP28 in Dubai.
The Executive Director of the World Food Programme, Cindy McCain added, “The climate crisis is affecting agricultural communities across Africa. This programme will play an important role in protecting smallholder [farmers], pastoralists and small businesses from climate shocks.”
“The climate crisis is affecting agricultural communities across Africa. This programme will play an important role in protecting smallholder [farmers], pastoralists and small businesses from climate shocks…We are excited about our growing partnership with the African Development Bank, which is allowing us to offer more support to governments, as they respond to the climate crisis,” said McCain.
