At a Glance
- AfDB commits $6 million to improve Africa’s disaster preparedness and risk management systems.
- The grant will help African nations build financial readiness and expand insurance coverage.
- Initiative targets early warning tools, risk training, and support for climate-vulnerable states.
The African Development Bank Group’s board has cleared a $6 million grant to help African countries step up disaster preparedness and improve access to risk financing over the next two years.
The support, approved on Oct. 29, will be directed through the Bank’s African Disaster Risk Financing Initiative to the African Risk Capacity, an African Union agency that assists countries in dealing with droughts, floods, cyclones, and other weather-related shocks.
The initiative aims to help nations move from crisis response to long-term readiness as extreme weather continues to threaten communities and public finances.
Shifting from reaction to prevention
The new funding is expected to boost governments’ ability to anticipate and plan for emergencies rather than respond after the damage is done. It will strengthen technical and operational systems across several fronts—from early warning tools and risk assessment to targeted training for civil servants and policymakers.
A key part of the project will also help countries build stronger financial planning for emergencies. That includes improving how they set aside and release funds when disasters occur, ensuring responses are faster and better coordinated. The Bank says the effort will also make it easier for governments to attract outside support when needed.
Expanding insurance coverage
The grant will allow the African Risk Capacity to widen participation in its sovereign insurance pool, which provides quick funding to governments hit by disasters. It will also support the design of new climate insurance products and deepen engagement with countries that have yet to ratify the ARC Treaty.
Implementation will take place in all ARC member states, with special attention to those most vulnerable to climate shocks. Planned work includes completing national programs, assisting with premium payments, and supporting teams that handle risk quantification, contingency planning, gender inclusion, and monitoring.
Building resilience through partnership
The collaboration reflects a shared goal between the African Development Bank and the African Risk Capacity to strengthen Africa’s resilience to climate-related crises. Officials, technical experts, and policymakers across the continent are expected to benefit from the program through better tools, training, and coordination.
African Development Bank Group and African Risk Capacity
Headquartered in Abidjan, Côte d’Ivoire, the African Development Bank Group includes the African Development Bank, the African Development Fund, and the Nigeria Trust Fund. It operates in 41 African countries and one office in Japan, supporting growth and social progress across its 54 member states.
Established in 2012 as an African Union agency, the African Risk Capacity helps member states with disaster risk modeling, contingency planning, and insurance. Since its creation, 39 countries have joined, with payouts exceeding $230 million to 14 nations—assisting millions of people with timely relief following droughts, floods, and other natural disasters.
